Swiss-based Chocoladefabriken Lindt & Spruengli has caught the attention of more US investors looking for international dividend exposure. Lindt & Spruengli makes some of the most popular, luxurious chocolates in the world that include Lindt (Lindor truffles, Excellence bars), Ghirardelli, and Russell Stover. Their 2024 annual report was released in March, and investors have been buzzing about the Swiss chocolatier’s growth prospects, especially with Trump tariffs seemingly stuck in higher for longer.
The stock ticker for Lindt & Spruengli AG is LDSVF and as of this article, each share costs $16,159.74. For many US based investors, that can be a tough hurdle. I’m an avid Lindor truffle fan (we keep them well stocked in our own home), and wanted to dollar-cost-average into the stock without forking over $16k per share.
Finally, I discovered CHLSY , Chocoladefabriken Lindt & Sprungli AG ADR. Each ADR is a 100th of 1 regular LDSVF share (100:1 ratio).
How Is an ADR Different from a Regular Share?
An American Depositary Receipt (ADR) and a regular share (common stock) have distinct differences in terms of their structure and functionality:
- Definition: An ADR is a negotiable certificate representing shares in a foreign company that are traded on U.S. exchanges. In contrast, a regular share refers to the ownership stake in a domestic company, directly traded on its local exchange.
- Purpose: ADRs allow U.S. investors to invest in foreign companies without the complexities involved in investing in international stocks directly. Regular shares, however, pertain simply to the ownership in companies listed domestically.
- Trading and Currency: ADRs are traded in U.S. dollars, making them more accessible for American investors, while regular shares are traded in their respective local currencies.
- Dividends: Dividends from ADRs may be paid in U.S. dollars, while regular share dividends are paid in the company’s local currency.
Overall, while both ADRs and regular shares represent ownership in companies, ADRs provide a pathway for U.S. investors to access international markets, simplifying the process of cross-border investing.
CHLSY Dividend Information and History
The CHLSY ADR, representing Lindt & Sprüngli AG, has embarked on a dividend journey that began recently in 2023. In its inaugural year, the ADR paid a dividend of $0.06548 per share. The latest declared dividend amount was $0.1807 per share, with the pay date scheduled for May 9, 2025 and an ex-dividend date of April 23, 2025 . This systematic approach to dividend distribution reflects the company’s commitment to sharing its successes with investors.
In their March 2024 annual report, Lindt & Sprüngli announced an increase in their dividend for the 29th consecutive year , reinforcing their attractive dividend policy. The Board proposed a distribution of CHF 1,500 per registered share, an increase from CHF 1,400 the previous year (an increase of 7.1%), along with a likewise increase for participation certificates. Additionally, the company has introduced a buyback program worth up to CHF 500 million , further demonstrating confidence in their financial health and commitment to return capital to shareholders.
In their 2024 annual report, leadership projected that Lindt & Sprüngli expects a 7-9% increase in organic growth in 2025 and “improved operating profit margin of 20-40 basis points per year.” They believe that in the long term, they can achieve a 6-8% increase in operating profit margin. With that in mind, their dividend looks like it has room to run over the next few years based on their own projections.
Lindt & Sprüngli AG, Lindy Consumer Staple for International Investors
Lindt & Sprüngli AG, as part of the consumer staples sector, exemplifies a business characterized by its resilience and consistent demand, irrespective of economic cycles. Companies in this sector focus on essential goods—products that consumers consistently purchase, such as food, beverages, and personal care items.
- Market Stability: Lindt, renowned for its premium chocolates, benefits from the stable demand inherent to consumer staples. During economic downturns, consumers may cut back on discretionary spending, but they typically maintain their purchases of essential goods, including gourmet chocolate treats for occasions or personal enjoyment.
- Brand Loyalty: A significant facet of Lindt’s operation is its strong brand equity. Established in the market with a reputation for quality, consumers often exhibit brand loyalty, choosing Lindt’s products over less familiar alternatives, even as budget-conscious shopping behaviors emerge.
- Pricing Power: Lindt’s positioning as a premium brand grants it robust pricing power. In times of inflation or rising costs, the company is better equipped to pass on price increases to consumers without substantially impacting demand, a key trait of successful companies in the consumer staples category.
- Growth Opportunities: Despite being a mature player in the industry, Lindt continues to explore growth avenues, such as expanding its product range and entering new markets, thereby enhancing its profitability. This strategy aligns with the behavior of successful consumer staples companies that often seek to innovate while maintaining their core offerings.
In essence, Lindt & Sprüngli AG illustrates how a well-established company in the consumer staples sector can maintain stability and growth potential by leveraging brand loyalty, pricing power, and strategic expansion, even amidst economic fluctuations.
Unwrapping Lindt & Sprüngli AG’s Dividend and Total Return Future Opportunity
In conclusion, Lindt & Sprüngli AG represents a compelling opportunity for U.S. investors seeking exposure to international dividends within the consumer staples sector. The company’s strong focus on premium products and its established brand reputation create a solid foundation for consistent demand and financial resilience. With an impressive track record of annual dividend increases and strong growth projections, Lindt’s ADR, CHLSY, offers an accessible alternative for those hesitant to commit significant capital to its regular shares.
The potential for growth, underscored by expectations for organic revenue increases and improved operating profit margins, suggests that Lindt’s dividend could see substantial growth in the upcoming years. As the chocolate market maintains its allure and consumer loyalty remains robust, investing in Lindt & Sprüngli AG through CHLSY not only provides the chance to enjoy the company’s premium products but also to reap the financial rewards of a stable and growing dividend yield. For investors looking to combine their passion for quality chocolates with sound financial strategy, Lindt & Sprüngli AG stands out as a delectable choice.
