Nestlé SA (NESN) has announced a dividend of CHF 3.00 per share for fiscal year 2023, up from CHF 2.95 in the previous year. The dividend will be paid on April 24, 2024, with the ex-dividend date set for April 22, 2024. Based on the current share price, Nestlé offers a dividend yield of approximately 3.15% — among the highest in the consumer staples sector.
This marks the 29th consecutive year of dividend growth and the 64th consecutive year that Nestlé has maintained or increased its dividend in Swiss francs — a testament to the company’s financial resilience and shareholder commitment.
Founded in 1866, Nestlé is the world’s largest food and beverage company, with approximately 270,000 employees, a portfolio of over 2,000 brands, and operations in 188 countries. The group owns more than 30 billion-dollar brands and dominates key categories across food and drink.
For example, Nestlé holds a 22% global market share in coffee — nearly three times that of the next largest competitor. In the U.S. pet care market, its Purina brand controls 29% market share, larger than the second and third players combined.
Nestlé reported total revenues of CHF 93.0 billion in 2023, a 1.5% decline from CHF 94.4 billion in 2022. However, organic growth remained strong at 7.2%, driven by pricing increases (+7.5%) despite a slight decline in real internal growth (RIG: -0.3%).
The underlying trading operating profit (UTOP) margin rose to 17.3%, up 20 basis points on a reported basis and 40 basis points in constant currency. The trading operating profit (TOP) margin rose to 15.6%, up 160 basis points.
Earnings per share (EPS) increased 8.4% in constant currency and 0.1% on a reported basis to CHF 4.80. Reported EPS rose 23.7% to CHF 4.24. Free cash flow improved significantly, reaching CHF 10.4 billion — up CHF 3.8 billion due to better working capital management.
In total, Nestlé returned CHF 12.8 billion to shareholders in 2023 through a combination of dividends and share buybacks.
For 2024, Nestlé expects organic sales growth of around 4% and a moderate improvement in its underlying trading operating profit margin. Constant currency EPS is projected to grow between 6% and 10%.
Looking ahead to 2025, Nestlé has set mid-term targets of mid-single-digit organic sales growth, a core operating profit margin of 17.5% to 18.5%, and constant currency EPS growth of 6% to 10% annually.
Nestlé’s brand strength is clearly reflected in its financial performance. Organic sales have grown consistently at ~5% per year since 2009 — a key indicator of brand health. The company has outperformed peers in volume resilience, with volume declines under 1% compared to mid-single-digit declines seen by many competitors.
Nestlé also delivers industry-leading return on invested capital (ROIC), currently at ~17%.
The dividend track record is impressive: from CHF 2.15 in 2014 to CHF 3.00 in 2023, representing a compound annual growth rate (CAGR) of ~3.4% over the past decade. Over the last five years, earnings have grown at 4.9% per year, and the company has distributed most of its profits to shareholders.
With unmatched global scale, an iconic brand portfolio, robust financials, and a disciplined capital return strategy, Nestlé continues to stand out as a top-tier long-term investment in the consumer staples sector.
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