While many consumer goods companies reliably pay out dividends, Monster ($MNST (+1,35 %) ) has been taking a different approach for years.

No dividends, but massive share buybacks.

1. what is behind the buybacks? 💵

• Monster Beverage generates high free cash flows and used them in 2024 to spend an impressive USD 3.77 billion on buybacks.

• The largest block was in the second quarter of 2024 with USD 3.11 billion.

• This reduces the number of shares and increases earnings per share in the long term.

• Comparison with peers: While Coca-Cola pays out over USD 8 bn in dividends every year, Monster invests the majority of its cash flow in buybacks. This shows the clear difference in capital strategy.

2. why this is so strong 🔄

• Tax advantage: shareholders only have to pay tax on the sale, while dividends are taxed immediately.

• Flexibility: buybacks can be stopped or extended. Dividends, on the other hand, are difficult to reduce without scaring off the stock market.

• Signal: Buybacks show that the management believes in its own shares.

• Ownership structure: Coca-Cola holds around 19% of Monster. This means that Coca-Cola shareholders ($KO (-0,1 %) ) benefit indirectly from the buybacks.

3. opportunities and risks 📈

• Pro: In the long term, earnings per share increase without the company having to grow. This can stabilize the share price. Since 2018, Monster has increased its number of shares by around 10 % reduced. The effect is clearly visible in earnings per share.

• Cons: If the share is already highly valued, buybacks can destroy capital. In 2024, Monster was criticized several times for its high valuation.

4️. Conclusion 👉

Monster has a clear shareholder focus, but without a dividend.

Whether this is an advantage depends on whether you see buybacks as an intelligent allocation of capital or as a lack of distribution.

> $PEP (+0,5 %)

> $KO (-0,1 %)

Never mind then more Asbach, the Semper Underberg AG Group

$DE000A383FH4 (+0 %) WKN A383FH or

Jack Daniels from the Brown Forman Group in your glass

Have a nice Sunday

Brown-Forman is an American beverage company based in Louisville, Kentucky. The company was founded in 1870 by George Garvin Brown and is now a global market leader in the spirits industry. Brown-Forman's well-known brands include¹ ² ³:

- *Whiskey brands:*

- Jack Daniel's: One of the most recognized whiskey brands in the world

- *Woodford Reserve*: A premium whiskey from Kentucky

- *Old Forester*: Another classic whiskey from Brown-Forman

- The Glendronach*, *Benriach* and *Glenglassaugh*: Scottish single malts

- Tequila brands:*

- *el Jimador

- *Herradura*

- *Other brands:*

- *Canadian Mist*: A Canadian whiskey

- *Chambord Liqueur*: A French liqueur

- *Gin Mare*: A Spanish gin

Brown-Forman has a long history and is known for its high-quality spirits. The company employs over 5,000 people worldwide and is listed in the S&P 500. Brown-Forman has been active in Germany since 1996 and founded its own marketing and sales company in Hamburg in 2010.

Brown-Forman has currently undergone a restructuring process in which over 600 jobs have been cut, which corresponds to around 12% of the workforce. This is intended to secure the Group's further strategic growth. In addition, the cooperage in Louisville was closed in order to source barrels from third-party suppliers.⁴

Dear community,

Due to circumstances in my job, I am now able to invest EUR 1200 per month in my income portfolio.

Unfortunately, I am at an impasse with my ideas and somehow need fresh input.

About me: Through individual shares (e.g. $O (+0,49 %) , $MAIN (+0,48 %) , $KO (-0,1 %) , $HAUTO (+0,95 %) , $PEY (-0,66 %) etc.) I currently receive an average monthly net dividend of EUR 206.

My investment objective is to build up passive cash flow. I am currently investing this independently in other assets or buying individual shares. If everything goes well, I would reduce my job in the future (5-10 years) thanks to the dividends.

My interest is a hybrid strategy (approx. 60% in dividend ETFs with (hopefully) growth and 40% in covered calls).

After much deliberation, I have now arrived at the following weighting:

$VHYL (+0,75 %) - 25% - 300,-

$FGEQ (+0,65 %) - 5% - 60,-

$DEM (+0,41 %) - 10% - 120,-

$TDIV (+0,1 %) - 20% - 240,-

$JEGP (-0,13 %) - 20% - 240,-

$JEPI - 10% - 120,-

$QYLE (-0,26 %) - 10% - 120,-

I don't like the $FGEQ (+0,65 %) (dividend growth is not really good) and the $QYLE (-0,26 %) (poor performance). What do you think of the weighting? I would be more than grateful for any ideas, suggestions etc. Muchas gracias.

Hello everyone,

Almost 3 years have now passed since my last portfolio presentation.

A lot has happened in that time.

About me: I follow a core-satelite strategy and focus on dividends/dividend growth. My current savings rate is around €1000 per month and I am 27 years old.

I want to continue saving in the portfolio until I retire and use it as additional income.

I am well aware that I would be better off with an accumulating ETF due to my still long savings period, but the regular distributions help me to stay "on the ball".

The aim over the next few years is to increase the proportion of ETFs as core to 70-80%. Monthly savings will be made in the $VWCE (+0,65 %) and the $TDIV (+0,1 %) . The second is currently being built up. The second FTSE All World is saved separately at €20 per month.

I'm currently wondering whether I should invest in stocks like $KO (-0,1 %) / $NEE (-0,21 %) / $JNJ (+0,59 %) into the $TDIV (+0,1 %) to keep the portfolio simpler.

Feel free to leave your opinion - I'm curious 🫡

My idea is to sell small stocks from my portfolio and switch to an Etf instead. Coca-Cola $KO (-0,1 %) (0.85%), Cisco $CSCO (-0,27 %) (0.85%) or BP $BP. (-0,34 %) (0.35%) make up such a small part of my portfolio that profits will have little relevance here and I won't see any excess return. With an Etf I would achieve at least a similar return, probably more. I also have no interest in adding to the stocks, as I would rather invest my existing capital in other companies and not in these "boring" stocks because that's what the ETF is for.

I am also considering Apple $AAPL (+0,51 %) into the Etf as well, due to the existing overlap. This would allow me to streamline my portfolio, make it clearer and open up other positions from which I expect a higher return.

What is your opinion on this? Should I reallocate the positions or just let them run because you should "never sell" solid stocks like Coca Cola?

Hello everyone.

Since my last question has already been answered so well, I'd like to ask again.

One of my largest positions is Apple. However, this does not quite fit into my dividend strategy. Since Apple is also strongly represented in my ETF, I would like to sell the individual position and open a position in a dividend share and then continue to save in the savings plan.

I am wavering between $MAIN (+0,48 %) , $KO (-0,1 %) both of which I already own or something completely different. I also own $SHEL (-0,44 %)
$DHL (+0,57 %)
$BATS (+2,31 %)

I look forward to an exchange

mfg Johannes

My dears, what do you think of $PEP (+0,5 %) ?

In my opinion, Coke wins on all fronts in terms of taste, but since the world of investing is not just about taste, I wanted to ask how many of you are invested in Pepsi. The share price has suffered a lot, but I would consider it as an investment as the Pepsi Group's products are exciting overall.

$KO (-0,1 %)
$CCEP (+1,51 %)