The company was formed in 1905 by the merger of the Anglo-Swiss Milk Company<\/strong>, established in 1866 by brothers George and Charles Page, and Farine Lact\u00e9e Henri Nestl\u00e9<\/strong>, founded in 1866 by Henri Nestl\u00e9(born Heinrich Nestl\u00e9).<\/p>\n\n\n\n Nestl\u00e9 has 447 factories, operates in 194 countries, and employs around 339,000 people. It is one of the main shareholders of L\u2019Oreal, the world\u2019s largest cosmetics company.<\/p>\n\n\n\n The company\u2019s products include baby food, medical food, bottled water, breakfast cereals, coffee and tea, confectionery, dairy products, ice cream, frozen food, pet foods, and snacks. Twenty-nine of Nestl\u00e9\u2019s brands have annual sales of over 1 billion Swiss Francs (CHF), approx. 1.1 billion US-Dollars.<\/p>\n\n\n\n A dividend aristocrat is a company that has continuously increased the size of dividends it pays to its shareholders. <\/p>\n\n\n\n To be considered a dividend aristocrat, a company must typically raise dividends consistently for at least 25 years. <\/p>\n\n\n\n More specifically, the company needs to have a managed dividend policy that increased its dividend every year for those 25 years.<\/p>\n\n\n\n Nestl\u00e9 has increased exponentially over the last 35 year, from CHF 0.10 a share for FY-1982 to CHF 2.45 a share for FY-2018, representing a 2,350% increase over the base rate on a per share basis, assuming no dividend reinvestment on the part of the owner.<\/p>\n\n\n\n As can be seen from above chart the company was able to increase its dividend during the great recession of 2008-2009 for which from fiscal year 2006 to FY-2015, the company increased its dividend from CHF 1.04 a share to CHF 2.45 a share, an increase of 136 percent in 12 years.<\/p>\n\n\n\n It is rare to find a company with a strong dividend, a high moat, and solid growth potential, but Nestle has all three and is one of the best blue-chip dividend stocks.<\/p>\n\n\n\n Above chart of the company\u2019s dividend payout shows, that Nestl\u00e9\u2019s dividend pay-out up to now kept on growing Year-Over-Year over a period of war and peace, inflation and deflation, and stock market booms and busts.<\/p>\n\n\n\n When comparing the share price performance of Nestl\u00e9 (blue chart)<\/em> with the performance of the DOW-30 (red chart)<\/em>, over the past 23 years, we can see that the shares of Nestl\u00e9 has performed approx. 250 percent better than the DOW-30 Index, as can be seen from below chart.<\/p>\n\n\n\n Based on the company\u2019s fundamentals, strong Balance sheet and with an approximates a compound annual growth rate in the dividend of 9.9% per annum, we have a BUY<\/strong> rating on the shares of the company.<\/p>\n\n\n\n To make a long story short, Nestle is a great company, at a fair price. It\u2019s the best dividend growth stock nobody talks about.<\/p>\n\n\n\n I\/We are long share holders of Nestl\u00e9 Inc.<\/p>\n\n\n\n Last but not least, before taking any investment decision, always take your investment horizon and risk tolerance into consideration. Keep in mind that share prices don\u2019t move in a straight line and that Past Performance Is Not Indicative Of Future Results.<\/p>\n\n\n\n Yours sincerely,<\/p>\n\n\n\n Eric Panneflek<\/p>\n","protected":false},"excerpt":{"rendered":" Dear PGM Blog reader, In this weekend’s blog article, we want to take the opportunity to discuss with you why Investing in Nestl\u00e9 can be lucrative for value investors. INTRODUCTION: Nestl\u00e9 S.A. (SIX: NESN) a Swiss transnational food and drink company headquartered in Vevey, Vaud, Switzerland, is the world’s largest food company, measured by revenues[…]<\/a><\/p>\n","protected":false},"author":2,"featured_media":18652,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[51],"tags":[],"class_list":["post-18634","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-pgm-capital-blog"],"_links":{"self":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18634","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/comments?post=18634"}],"version-history":[{"count":16,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18634\/revisions"}],"predecessor-version":[{"id":18655,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/posts\/18634\/revisions\/18655"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media\/18652"}],"wp:attachment":[{"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/media?parent=18634"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/categories?post=18634"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.pgmcapital.com\/nl\/wp-json\/wp\/v2\/tags?post=18634"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2017\/09\/nestle-products-lg.jpg\")
<\/figure><\/div>\n\n\n\nNESTL\u00c9 THE DIVIDEND ARISTOCRAT:<\/h3>\n\n\n\n
Definition of Dividend Aristocrat:<\/h5>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/05\/what_are_dividend_aristocrats.jpg\")
<\/figure><\/div>\n\n\n\n![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-04-28-at-2.47.34-PM.png\")
<\/figure><\/div>\n\n\n\nPGM CAPITAL ANALYSIS & COMMENTS:<\/h3>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2019\/05\/Screen-Shot-2019-04-28-at-3.09.41-PM-1024x500.png\")
<\/figure><\/div>\n\n\n\nDisclosure:<\/h4>\n\n\n\n
![\"\"](\"https:\/\/www.pgmcapital.com\/wp-content\/uploads\/2015\/06\/eric.jpg\")
<\/a><\/figure>\n\n\n\n