urbazon/E+ via Getty Images Investment thesis Dividend growth investing requires a certain degree of predictability. This will quickly take you to the consumer staples sector. Resilient business models, constant growth and a sector where stable dividend growth often occurs.
Despite the fact that there is always a lot of attention for American stocks in this sector, there are also great ones in Europe. And when we talk about high-quality companies, L'Oréal ( OTCPK:LRLCF ) comes into the picture. LRLCF is the world number 1 in the beauty industry and has an impressive track-record of growing its earnings at a rapid pace.
I think this quote, which I read on psychology today , is a nice description of why consumers spend a lot of money on beauty products. For most, physical appearance is an important thing, as studies show that feeling that one is attractive helps build confidence and self-esteem. The psychology of beauty thus has much to do with individual self-worth and simply feeling good about oneself.
The company in general really intrigues me and in my opinion LRLCF is a European business to be proud of. However, a quality company does not always have to be a good investment. Today we're going to do a business breakdown to determine if the company is a good investment at current levels.
Company overview LRLCF is a French-based beauty giant with a market cap of €235 billion and is headquartered in Clichy. It all started in 1907 where Eugéne Schueller created one of the.
