How to buy Ahold Delhaize shares (2024)? – Invest in Ahold
Ahold Delhaize is a strong retail group which operates internationally. Are you considering investing in Ahold Delhaize stocks? In this article, you will learn how to buy Ahold shares. You can also check the current Ahold Delhaize stock price on this page.
Do you have confidence in the growth ambition of Ahold Delhaize? Do you think the merger has brought a lot to the company? Then it may be wise to buy Ahold Delhaize shares.
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What is the current Ahold Delhaize stock price?
Company data of Ahold Delhaize
Below you can find the key company data of Ahold Delhaize.
Ahold stock prices of the last 5 days
In the table below, you can see the stock market prices of Ahold Delhaize for the last 5 days:
People always need to eat
Supermarket chains are relatively safe, stable investments. Of course, an accounting scandal or other major event can have a negative effect on the stock price. However, the sector is fairly stable because people always need to eat.
Even in economically worse times, people still visit the supermarket. They naturally buy fewer products during an economic crisis. An economic crisis will therefore not be good for the performance of the stock. However, the effects for other sectors are often much more extreme. An investment in Ahold Delhaize can therefore be a good, stable factor in your portfolio.
In exceptional cases, an economic crisis can even be positive for the stock price. This was the case during the COVID-19 pandemic of 2020. Due to various lockdowns, all shops had to close except for supermarkets.
A big player
Ahold Delhaize has a strong position in the Netherlands, where they are the market leader. Besides this, Ahold also built a considerable and strong position in Europe and the US. This comes with several advantages: Ahold can negotiate prices for products well. Food brands want to avoid being removed from supermarket shelves, as they immediately lose a large market.
At the same time, the company can achieve economies of scale by performing certain logistical functions from one point. The company has gained a lot of experience in the supermarket industry over a long period of time, which makes it a potentially interesting investment.
Do you think that Ahold can build an even stronger international position in the future? Then it may be smart to invest in Ahold by buying the shares.
Focus on growth
Ahold Delhaize operates in multiple continents and countries. This means that any setbacks in one region can be absorbed by profits in another region. In addition, this growth can lead to more profits in the future. If you have confidence in Ahold Delhaize’s growth strategy, it may be appealing to buy the shares.
Ahold Delhaize takes advantage of new technological possibilities. The delivery of groceries to homes is more flexible. They have also owned Bol.com for several years, which gives them a considerable reach.
Since Bol.com is internationally active, the company is less dependent on the economic situation in one specific region. This means that poor results in one region can be offset by good results in another region.
Threats to investing in Ahold
However, this does not necessarily make Ahold Delhaize a completely safe investment. What should you watch out for before buying Ahold Delhaize shares?
The company is internationally active and conducts business in different currencies. Exchange rates can therefore strongly influence the results of the company. Before investing in Ahold Delhaize, it is important to consider the effect of future exchange rates on the company’s results.
Failing business units
Not all units under Ahold Delhaize are performing equally well. When business units perform poorly, it only costs money. It is possible that these business units could put pressure on the company’s share price in the future.
Before buying Ahold Delhaize shares, it is essential to keep an eye on the competition. In America, Ahold Delhaize is not the largest player. For example, Amazon acquired Whole Foods and is therefore a powerful competitor for the company. If you consider an investment in Ahold Delhaize, it is essential to analyse the company’s competition well.
What are Ahold’s biggest competitors?
Step 1: You need a brokerage account to buy and sell Ahold shares. Click here to open a reliable account with a broker.
Step 2: Take the time to fully activate your investment account by verifying your identity.
Step 3: You can then deposit money into your investment account via bank transfer or credit card.
Step 4: Select the Ahold share and enter the amount you want to invest. You can also choose to set a price at which you would like to buy the share at a later time.
Step 5: Click buy to purchase the shares directly on the stock exchange. It may take a few minutes for the order to be fully executed.
2003 accounting scandal
Ahold made headlines in 2003 due to an accounting scandal in which several American supermarket brands under Ahold had reported too high profits. This had major consequences: large parts of the management were forced to resign. The company’s credit rating was also severely downgraded and the value of the share fell by over two-thirds.
New data showed that the company had actually suffered a loss of 1.2 billion euros. The Dutch branch, Ahold, was sued for fraud. Numerous board members and the company itself had to pay a fine.
Under the leadership of the new CEO, Henny de Ruiter, Ahold managed to recover. Unprofitable supermarkets in South America and Asia were sold. The financial position was restored, and the company regained an investment-grade rating.
As an investor, you can benefit from this kind of news. By investing smartly, you can short during bad news and buy the shares when the panic passed over.
The strategy for Ahold has been focused on growth again since 2006. The goal of the strategy is to strengthen the competitive position with a focus on America. They try to achieve this by offering more interesting products and services. Ahold also tries to reduce costs and improve their pricing position. Ahold acquired various new chains, such as CD&R, KKR, and Tops.
In 2011, Dick Boer became CEO and he established six strategic pillars which should enable further growth. The goals are to strengthen loyalty, expand the product range, grow into new regions, simplify the enterprise, and improve performance. Do you think this is a good strategy? Then it may be smart to buy Ahold Delhaize shares.
In 1887, Albert Heijn and his wife started a small supermarket in Oostzaan. They received this supermarket as a wedding gift from Albert’s father. Albert Heijn senior’s sales pitch in those days was: “cheap enough for the man on the street and good enough for the millionaire.” This formula proved successful and within 10 years they owned 10 stores.
The Current Company
Ahold (Albert Heijn Holding) no longer only consists of the Albert Heijn supermarket chain. In Europe, they possess the following brands: Albert Heijn, Etos, Gall & Gall, Albert.nl, bol.com, Albert, Hypernova, ICA, and Pingo Doce. In America, they own, among others, Stop & Shop, Giant, Martin’s, and Peapod.
Since the company is active in different regions, the risks of investing in Ahold stocks are lower. Losses in one region can be offset by good results in another region.
In 2015, it was announced that Ahold would merge with the Belgian brand Delhaize. The new company name became Ahold Delhaize, and the headquarters are still located in the Netherlands. In the merger, Ahold shareholders received 61% of the shares, and Delhaize shareholders received the other 39%.
Both companies were already generating the most revenue in America. After the merger, the company became the fourth-largest supermarket chain in Europe and the fifth-largest in America.
Some Tips for Investing in Ahold Delhaize
Before investing in Ahold Delhaize, it is wise to take these short investment tips into account:
Tip 1: Apply Diversification
Firstly, it is important to apply sufficient diversification. Do not invest all your money in Ahold Delhaize shares. Look for other interesting sectors to invest in. This prevents you from losing all your money when Ahold shares perform poorly.
Tip 2: Invest with a Plan
Furthermore, it is essential to always invest with a plan. Evaluate your investment plan regularly. Is the plan still relevant? Are you following the steps well? By constantly incorporating a reality check, you keep track of whether you are achieving your goals.
Step 3: avoid panic
Finally, it is essential not to get too caught up in a panic. Especially when everyone is dumping a stock, it can be wise to buy the stock. A scandal can be a great opportunity. However, you must first analyse the impact of the event to determine that the company will not go under.
Is it wise to invest in Ahold stocks?
An investment in Ahold Delhaize shares can certainly pay off. The company is a large, stable player where shareholders benefit from a solid dividend payout. The company typically pays out between 40 and 50 percent of profits in dividends, which allows you to build an income with Ahold shares in the long term.
The diversification across different regions also offers extra opportunities: losses in one region can be offset by profits in another region. Additionally, Ahold responds well to the increasing popularity of the internet: Ahold offers grocery delivery and bought the e-commerce platform Bol.com.
If you want to invest in Ahold shares, it is important to keep a close eye on the competition. There are many local supermarkets that are eager to dethrone Ahold. It is also essential to investigate whether Ahold shares fit within your investment strategy.
When I was 16, I secretly bought my first stock. Since that ‘proud moment’ I have been managing trading.info for over 10 years. It is my goal to educate people about financial freedom. After my studies business administration and psychology, I decided to put all my time in developing this website. Since I love to travel, I work from all over the world. Click here to read more about trading.info! Don’t hesitate to leave a comment under this article.