Christopher Johnson: Welcome to Dividend Watch, my name is Christopher Johnson.
According to Morningstar Data, dividend payer Heineken is one of the most popular stocks chosen by Gold Medalist-rated portfolio managers.
The Dutch Brewer is currently trading at £67.99, underperforming Morningstar’s Fair Value Estimate of £85.37. Heineken sold 243 million hectolitres of beer in 2023 and is the world’s second-largest brewer.
However, the business reported disappointing sales in the second quarter. The Dutch group said the volume of beer it sold in the first half rose 2.1%, just below the 3.4% increase forecast by analysts.
Heineken also reported a £746.11 million loss on its investment in China’s largest brewer, China Resources Beer, due to softening consumer demand in the country. But the company still reported a revenue increase of 2.2% to £15.2 billion in the first half of the year.
Backers of the business point to Heineken’s premium portfolio holding a leading position in many European markets with brands like Lagunitas and Birra Moretti. Heineken 0.0 is the no-alcohol extension of its brand.
It has been a blockbuster success globally and bulls on the stock believe it will be a real driver of growth for the business. Heineken pays a quarterly dividend worth 37 pence to investors.
