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Love Oreos

Mondelez International (MDLZ) is an unloved stock but most people love oreos. It could be the name, which is reportedly a mixture of the words for “world” and delicious” in Latin. The obscure name belies the popularity of the snacking giant’s products. The company sells Oreos and Cadbury and owns many other leading brands. Mondelez seems to be executing well with market leadership in cookies, chips, and chocolates. The company is a relatively little followed dividend growth stock but should be on your radar as a Dividend Challenger. The dividend is safe and should continue growing in the future. I view Mondelez as a long-term buy.

Overview of Mondelez – Love Oreos

Mondelez traces its founding to 2012 when Kraft Foods split into two companies known as Mondelez International and Kraft Foods Group. Kraft Foods Group was eventually acquired by 3G Capital, the Brazilian investment firm. Mondelez divested its coffee business into a joint venture that eventually became Keurig Dr Pepper (KDP). Later, the company bought Cadbury. Mondelez has been reducing its stake in KDP and now owns about 5.33%. The company also owns roughly 23% of JDE Peet’s (JDEP), now listed in Amsterdam. Total revenue was $26,581 million in 2020 and $27,843 million in the LTM. The market capitalization is $84.27 billion.

Today, Mondelez owns brands from Nabisco, Cadbury, and LU Biscuits. Mondelez is one of the largest snack foods companies in the world. Mondelez’s notable brands include Nabisco, LU, Oreo, Ritz, Chips Ahoy, Halls, Trident, Tang, Toblerone, belVita, and Cadbury. Oreo ($3.6 billion in revenue), belVita, LU, Cadbury (more than $4 billion in revenue), Milka (more than $2 billion in revenue), and Toblerone are number 1 in their market segments. Chips Ahoy is No. 2 in the world behind Oreo. In addition, the company owns many other local brands that are No. 1 in their countries…

Disclosure: Long MDLZ

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Prakash Kolli is the founder of the Dividend Power site. He is a self-taught investor, analyst, and writer on dividend growth stocks and financial independence. His writings can be found on Seeking Alpha, InvestorPlace, Business Insider, Nasdaq, TalkMarkets, ValueWalk, The Money Show, Forbes, Yahoo Finance, and leading financial sites. In addition, he is part of the Portfolio Insight and Sure Dividend teams. He was recently in the top 1.0% and 100 (73 out of over 13,450) financial bloggers, as tracked by TipRanks (an independent analyst tracking site) for his articles on Seeking Alpha.

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