Why I Am Buying This German FMCG Dividend Stock
As a long-term dividend enthusiast, I’m always hunting for resilient companies that deliver consistent returns over decades.
After years of patient observation, I’m thrilled to add the German dividend stock Beiersdorf (OTCPK:BDRFF) to my All-Weather Portfolio.
Many might not know the name, but I am sure everyone knows its iconic skincare brands like Nivea, Eucerin, and LaPrairie, and also innovative adhesives via Tesa.
Beiersdorf perfectly aligns with my ultra-long-term buy-and-hold-forever strategy.
Drawing from a lot of detailed analyses, I’ll outline what makes this FMCG dividend stock interesting for long-term investors.
Let’s dive in!
About My Portfolio
My flagship dividend portfolio, which I call All-Weather Portfolio, is built to thrive in any market, focusing on timeless businesses that generate reliable dividends and compound wealth over time.
Beiersdorf, as a juggernaut of FMCG dividend stock, fits this mold perfectly.
Quick Profile of Beiersdorf
- Beiersdorf is a German powerhouse in the fast-moving consumer goods (FMCG) sector, blending skincare innovation with industrial adhesives.
- Founded in 1882 by Paul C. Beiersdorf in Hamburg, it grew under Oscar Troplowitz, who launched Nivea Crème in 1911.
- Surviving wars and economic turmoil, it’s now a DAX-listed giant with over 20,000 employees
- Operates in consumer skincare and adhesives segments (Tesa).
- Majority-owned by maxingvest AG (over 50% voting rights, also controlling Tchibo)
- boasts a clean balance sheet with no long-term debt
- makes a standout FMCG dividend stock.
Beiersdorf Segments & Brands
Beiersdorf’s portfolio is packed with household names that dominate daily routines, reinforcing its status as a premier FMCG dividend stock.
Skincare/body care (83% revenue) and self-adhesive products (17%).
The “Western World” represents about 70% of its revenues, 30% are generated in emerging markets, room for a lot of potential.
From sunscreen to lip balm, its products are ubiquitous in homes, pharmacies, and industries worldwide, driving customer loyalty and repeat purchases.
- Nivea: Iconic creams, lotions, and lip balms—think the classic blue tin for daily hydration.
- Labello: Go-to lip balm for chapped lips, especially in harsh weather.
- Eucerin and Aquaphor: Therapeutic skincare for sensitive skin and hyperpigmentation (e.g., Thiamidol).
- Coppertone: Trusted sunscreen with the famous little girl logo, a beach essential.
- La Prairie and Chantecaille: Premium anti-aging and beauty lines for luxury markets.
- Tesa: Adhesive solutions for automotive, electronics, and construction—not skincare, but critical for industry.
These brands create a powerful moat through trust and high switching costs, cementing Beiersdorf’s edge in the FMCG dividend stock arena.Stable Revenues, Profits, and Progress with a Timely Entry
Ownership
The Maxingvest Group is a Hamburg-based holding company that focuses on long-term value creation through strategic management of its subsidiaries. It fully owns Tchibo GmbH, a major coffee and retail business, while controlling over 50% of the voting rights in Beiersdorf.
The Opportunity
Beiersdorf embodies the stability I seek in an FMCG dividend stock: consistent sales growth, improving margins, and robust cash flows.
Let’s compare it with some leading consumer companies:
Although it is small, it still has the required size to play in the big leagues.
Let’s now look at the Price to Book and Price to Sales ratio. In the past 10 years, Beiersdorf hasn’t been that cheap!
When looking at the net profit and free cash flow, we can see a dip from 2022 to 2024, but an improvement in 2025. Overall, nothing to be too concerned about on this front.
When looking at the debt-to-equity ratio, Beiersdorf starts to look really good.
Risks & Potential Issues
Short-term issues might be coming from tariffs, skincare slowdown, China luxury dip—creating a buy opportunity at $110-$137.
Long-awaited entry: Historically overvalued; now a compelling FMCG dividend stock at current levels.
Beiersdorf’s resilience shines through recessions—minimal revenue drops (e.g., 3.7% in 2009)—and growth drivers like emerging markets, men’s grooming (6.2% CAGR), e-commerce (up 23%), and a 5.8% industry CAGR through 2026 ensure future upside.
Its debt-free balance sheet and €1.6B EBITDA provide flexibility to navigate challenges or pursue acquisitions.
Conclusion
In conclusion, Beiersdorf is a textbook buy-and-hold FMCG dividend stock: strong brands, steady cash flows, low debt-to-equity ratio, and a rare valuation dip, make it a perfect fit for my portfolio.
It’s not flashy, but in a world of tariffs and slowdowns, its stability is gold.
If you’re crafting a similar portfolio, maybe consider Beiersdorf as well!
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Age when reaching FI: 40 in 2018
Left the rat race: May 2017
Living in: Singapore
Number of kids: 2
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