8 Best Beverage Dividend Stocks To Buy According to Hedge Funds

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

Number of Hedge Fund Holders: 51

Mondelez International, Inc. (NASDAQ:MDLZ) ranks fifth on our list of the best beverage stocks that pay dividends. The American food, beverage, and confectionery company prides itself on having an extensive portfolio of recognizable brands. It continues to focus on accelerating its core business while strategically reshaping its portfolio. One example of this is its expanded partnership with Evirth, a leading cake and pastry manufacturer in China. In the past five years, the stock has surged by nearly 25%.

Mondelez International, Inc. (NASDAQ:MDLZ) reported revenue of $9.2 billion, which showed a 2% growth from the same period last year. The revenue also beat analysts’ estimates by $84.8 million. The management intends to maintain its strategic growth efforts, which include reinvesting in brands like Oreo, expanding distribution channels in the U.S., and pursuing mergers and acquisitions in Europe. Mondelez’s partnership with Lotus Biscoff is expected to boost chocolate sales in Europe while also expanding its biscuit business in India. These initiatives are promising for the company’s future, and if the momentum persists, investors can anticipate ongoing dividend increases.

Mondelez International, Inc. (NASDAQ:MDLZ) is a reliable dividend payer, producing robust cash flow that suggests potential for future dividend growth. In the first nine months of the year, the company generated $3.5 billion in operating cash flow and its free cash flow for the period came in at $2.5 billion. In addition, it returned nearly $3 billion to shareholders during this period in dividends and share repurchases. MDLZ is one of the best beverage stocks as the company has been rewarding shareholders with growing dividends for the past 10 consecutive years. It currently offers a quarterly dividend of $0.425 per share and has a dividend yield of 2.92%, as recorded on November 24.

Insider Monkey’s database of Q3 2024 indicated that 51 hedge funds owned stakes in Mondelez International, Inc. (NASDAQ:MDLZ), growing from 47 in the previous quarter. These stakes are valued at over $1.66 billion in total. With over 3.7 million shares, Arrowstreet Capital was the company’s leading stakeholder in Q3.