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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 10.02.2021
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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 ADR212.30 USD0.33Rating
Amazon.com Inc3,486.90 USD-0.07Rating
Apple Inc130.46 USD-1.01Rating
Berkshire Hathaway Inc Class B274.04 USD-1.67Rating
Facebook Inc A329.66 USD-2.04Rating
Johnson & Johnson161.98 USD-1.96Rating
JPMorgan Chase & Co147.92 USD-2.53Rating
Nestle SA115.50 CHF0.03Rating
NVIDIA Corp745.55 USD-0.10Rating
Roche Holding AG348.25 CHF-0.04Rating
Tesla Inc623.31 USD1.09Rating
Toyota Motor Corp ADR177.03 USD-4.41Rating

About Author

Dan Lefkovitz  Dan Lefkovitz is Strategist, Indexes Product Management. 

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