Nestle, Nvidia, and the Changing Global Equity Markets

Morningstar indexes reveal the extent of US technology dominance, writes Dan Lefkovitz.

Dan Lefkovitz 10 February, 2021 | 22:45
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NVidia

The story of global equity markets over the past 10-plus years can be encapsulated by two big-name stocks: Nestle and Nvidia.

The former is the well-known Swiss food and beverage manufacturer that employs nearly 300,000. Nestle (SWX:NESN) has a forward dividend yield of roughly 2.4 per cent, has grown earnings at about a 5.0 per cent rate, and is trading at a reasonable but healthy trailing price/earnings ratio of around 22.

Nvidia (NAS:NVDA), for its part, is a US-based technology company, the leading designer of graphics-processing units used for gaming and cloud applications. It has fewer than 14,000 employees. Nvidia sports a meagre dividend yield of barely 0.1 per cent and a relatively lofty P/E ratio of 85 times trailing earnings, but it has been growing earnings at a 32 per cent rate.

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Securities Mentioned in Article

Security NamePriceChange (%)Morningstar Rating
Alibaba Group Holding Ltd ADR177.70 USD0.16Rating
Amazon.com Inc3,335.55 USD-2.90Rating
Apple Inc148.69 USD-0.53Rating
Berkshire Hathaway Inc Class B289.24 USD0.84Rating
Facebook Inc A324.61 USD-5.05Rating
Johnson & Johnson163.72 USD0.20Rating
JPMorgan Chase & Co171.78 USD1.35Rating
Nestle SA117.06 CHF0.15Rating
NVIDIA Corp227.26 USD0.15Rating
Roche Holding AG355.80 CHF-0.56Rating
Tesla Inc909.68 USD1.75Rating
Toyota Motor Corp ADR173.40 USD-0.36Rating

About Author

Dan Lefkovitz  Dan Lefkovitz is Strategist, Indexes Product Management. 

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