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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

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 ADR223.31 USD-2.16
Amazon.com Inc3,372.20 USD2.21
Apple Inc133.00 USD2.02
Berkshire Hathaway Inc Class B266.01 USD0.95
Facebook Inc A312.46 USD-0.18
Johnson & Johnson161.25 USD-1.06
JPMorgan Chase & Co156.28 USD0.75
Nestle SA108.80 CHF0.50
NVIDIA Corp576.00 USD0.58
Roche Holding AG309.65 CHF0.81
Tesla Inc677.02 USD-0.99
Toyota Motor Corp ADR154.28 USD0.59

About Author

Dan Lefkovitz  Dan Lefkovitz is Strategist, Indexes Product Management. 

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