Skip to navigationSkip to main contentSkip to right columnADVERTISEMENTTodd Shriber, The Motley FoolThu, July 16, 2026 at 8:50 PM GMT+2 4 min readCorrections, or declines of 10% to 20% from recent highs, are normal and can occur for a variety of reasons. To the latter point, investors considering individual stocks need to assess why a particular name is in the correction "penalty box."Inevitably, some corrections signal more bearishness to come, but there are examples of stocks pulling back from their 52-week highs, offering investors potentially compelling opportunities to get involved. Snack giant Mondelez (NASDAQ: MDLZ) is in the latter category.Missed Nvidia in 2009? This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia. Continue »Shares of the Ritz maker, which yield 3.3%, reside 17.4% below the 52-week high as of Tuesday, July 14. That's close to a bear market (a decline of 20% or more), but there are reasons to believe this consumer staples stock can get its groove back.Mondelez is a dividend stock to consider buying on the dip. Image source: Getty Images.If there's a bright side to the pullback experienced by Mondelez stock since notching its 52-week high, it's that the culprits are easy to understand. The big offenders are the Federal Reserve and high cocoa prices. Mondelez isn't a dedicated chocolate company, but it makes Cadbury chocolate products and Oreos, making it a major cocoa buyer.Unfortunately, the price of that commodity is soaring, and when that happens, Mondelez passes its higher input costs on to already inflation-wary consumers. Inflation is involved in how the Fed affects high-dividend stocks like Mondelez. Rate hikes are the "blunt instruments" typically deployed by central banks to dampen high consumer and producer prices.Often, that's problematic for high-dividend stocks. Higher interest rates usually push Treasury yields higher, prompting many income investors to favor lower-risk U.S. government debt over dividend stocks.The June reading of the Consumer Price Index (CPI) released Tuesday fell 0.4%, the largest monthly drop since April 2020. There's still work to be done on the inflation front, but in what could be good news for Mondelez, Fed funds futures show a high probability the central bank will stand pat at its meeting later this month. Standing pat is better than a rate hike.Here's something else that shouldn't be overlooked regarding Mondelez: Although the stock trades well below its 52-week high, it's up year to date. Actually, it's outperforming the S&P 500 and the broader consumer staples sector, indicating that even with the cocoa and Fed headwinds, the stock has been surprisingly durable.Terms and Privacy PolicyEU DSA contactPrivacy & Cookie SettingsMore Info