LVMH Moet Hennessy Louis Vuitton
Next is French luxury powerhouse LVMH Moet Hennessey Louis Vuitton (PINK:LVMUY). LVMH has been making headlines of late due to news leaking out that the company’s CEO Bernard Arnault — the wealthiest man in France — was seeking Belgian citizenship.
Whether the wily billionaire’s move is purely motivated by tax or if he has some other business trick up his sleeve remains to be seen. But in any event, it won’t make much of a difference to LVMH and its sprawling global luxury empire.
I’ve held LVMH in client accounts for months, as I view the company to be a fantastic backdoor way to get access to China’s nouveau riche. The company is strong enough to survive any prolonged slowdown without too much damage. (And even if China never fully returns to its old rates of growth, readers should remember that Japan remained the biggest buyer of luxury goods well into its multi-decade, slow-motion depression; a slowdown in China does not necessarily mean lean times for luxury goods firms in the country.)
LVMH yields a modest 2.1% , but its dividend is growing. In just the past two years, its dividend has risen from €1.65 to €2.60 — a jump of nearly 60%.