Nestle, Nvidia, and the Changing Global Equity Markets

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

Dan Lefkovitz 10.02.2021
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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 ADR127.53 USD-3.10Rating
Amazon.com Inc3,507.07 USD-1.53
Apple Inc165.30 USD3.16Rating
Berkshire Hathaway Inc Class B276.69 USD-1.92
Facebook Inc A324.46 USD-4.01Rating
Johnson & Johnson155.93 USD-2.39Rating
JPMorgan Chase & Co158.83 USD-1.49Rating
Nestle SA118.00 CHF-1.75Rating
NVIDIA Corp326.76 USD-2.10Rating
Roche Holding AG359.65 CHF0.60Rating
Tesla Inc1,144.76 USD0.68Rating
Toyota Motor Corp ADR177.85 USD0.21Rating

About Author

Dan Lefkovitz  Dan Lefkovitz is Strategist, Indexes Product Management. 

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