Is Mondelez a good investment now?

Analysts see it as a good long-term investment due to its strong brands, easing costs, and attractive dividend yield.

What is the dividend yield of Mondelez and General Mills?

Both stocks offer dividend yields between 3% and 4%.

What are the risks of investing in these stocks?

Risks include persistent inflation and consumer shifts to cheaper alternatives.

2 Consumer Staples Down 30%: A Buy-and-Hold Opportunity

Analysts suggest that Mondelez and General Mills, despite dropping up to 30%, present a compelling buying opportunity for long-term investors due to their durable brands, easing cost pressures, and attractive dividend income.

June 6, 2026

2 min read

Source: Motley Fool

Key Numbers

decline

30%

Investors are eyeing consumer staples stocks that have faced significant selling pressure, with Mondelez (MDLZ) and General Mills (GIS) falling up to 30% from their highs. Analysts see this decline as a buying opportunity for the long term, citing improving cost conditions and brand strength.

Analyst Rationale

Key factors supporting a potential recovery include:

Easing cost pressures: Declining commodity prices (grains, sugar, oils) are relieving margin pressure.
Strong brands: Mondelez owns Oreo and Ritz, General Mills has Cheerios and Pillsbury, giving them pricing power.
Attractive dividend yields: Both stocks offer yields between 3% and 4%, providing steady income.

Context

Despite inflationary challenges, recent data shows stable demand for staples. Valuations are below historical averages, adding to their appeal.

What to Make of It

While risks remain (persistent inflation, shifting consumer behavior), the strong fundamentals and low valuations make Mondelez and General Mills suitable for long-term investors seeking stable dividend income.

Frequently Asked Questions

The decline is due to inflationary pressures affecting consumer staples and concerns over slowing consumer spending.

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This article was rewritten in Wrqti's editorial style based on information from the original source above. Content is informational only — not investment advice.