Mondelez Is 17% Below Its 52-Week High. Here's Why Income Investors Should Buy the Dip.
Mondelez pulled back from its 52-week high in a big way, but for long-term income investors, the stock may be worth snacking on.
Overview
Corrections, or declines of 10% to 20% from recent highs, are normal and can occur for a variety of reasons. To the latter point, investors considering individual stocks need to assess why a particular name is in the correction "penalty box."
Inevitably, some corrections signal more bearishness to come, but there are examples of stocks pulling back from their 52-week highs, offering investors potentially compelling opportunities to get involved. Snack giant Mondelez (NASDAQ: MDLZ) is in the latter category.
Details
Shares of the Ritz maker, which yield 3.3%, reside 17.4% below the 52-week high as of Tuesday, July 14. That's close to a bear market (a decline of 20% or more), but there are reasons to believe this consumer staples stock can get its groove back.
Source
Originally published at www.fool.com.