Morgan Stanley Sees Cocoa Price Relief Improving EPS Visibility at Mondelez (MDLZ)

Mondelez International, Inc. (NASDAQ:MDLZ) is included among the 14 High Yield Dividend Stocks with Sustainable Payouts.

On January 28, Morgan Stanley raised its price objective on Mondelez International, Inc. (NASDAQ:MDLZ) to $65 from $64. It also kept an Overweight rating on the stock. The firm said the recent decline in cocoa prices is incrementally constructive for Mondelez, giving analysts better visibility into EPS forecasts. Near-term uncertainty around organic sales growth is still part of the picture, the analyst told investors.

Mondelez has built a strong record of returning cash to shareholders. Over the past five years, the company has grown its dividend at an annual rate above 10%. Since 2018, it has also repurchased more than $13 billion of its own shares, cutting the share count by about 15%. Management believes it can continue to return capital while expanding its global lineup of well-known snacking brands.

Cocoa costs remain a major headwind. Mondelez has warned that “unprecedented cocoa cost inflation” could reduce adjusted earnings per share by as much as 15% in 2025. Even with that pressure, the company is operating from a position of financial strength. Its broad geographic footprint and portfolio of established brands offer support as economic uncertainty increases.

Mondelez International, Inc. (NASDAQ:MDLZ) is one of the world’s largest snack companies. Its portfolio includes biscuits such as cookies and crackers, along with chocolate, cakes and pastries, snack bars, and candy.

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