16 Best Income Stocks To Buy According to Analysts

2. Mondelez International, Inc. (NASDAQ:MDLZ)

Upside Potential as of December 13: 26.11%

Mondelez International, Inc. (NASDAQ:MDLZ) is an American food, beverage, and confectionery company that prides itself on having an extensive portfolio of recognizable brands. The company remains committed to driving growth in its core business while strategically restructuring its portfolio. A notable example is its strengthened partnership with Evirth, a prominent cake and pastry producer in China.

Mondelez International, Inc. (NASDAQ:MDLZ) reported $9.2 billion in revenue for the third quarter of 2024, reflecting a 2% increase from the previous year and surpassing analysts’ expectations by $84.8 million. The company’s management remains focused on strategic growth, including reinvesting in popular brands like Oreo, expanding US distribution, and exploring mergers and acquisitions in Europe. Its collaboration with Lotus Biscoff is projected to enhance chocolate sales in Europe while strengthening its biscuit segment in India. These efforts bode well for the company’s future, and if the current momentum continues, investors could see further dividend increases.

Mondelez International, Inc. (NASDAQ:MDLZ) is known for its consistent dividend payments, supported by strong cash flow that signals the potential for future dividend growth. In the first nine months of the year, the company generated $3.5 billion in operating cash flow, with free cash flow reaching $2.5 billion. Additionally, it returned nearly $3 billion to shareholders through dividends and share buybacks. As a result, MDLZ stands out as one of the best dividend stocks. On December 11, the company declared a 10.65% hike in its quarterly dividend to $0.47 per share. This marked the company’s 11th consecutive year of dividend growth. The stock has a dividend yield of 3.02%, as of December 13.

The number of hedge funds tracked by Insider Monkey owning stakes in Mondelez International, Inc. (NASDAQ:MDLZ) grew to 51 in Q3 2024, from 47 in the previous quarter. The consolidated value of these stakes is over $1.66 billion. With over 3.7 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.