1 ASX 200 share to consider for the coming decade

I think this stock has a right decade in front of it.

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Key points

  • Bega is recognised for its strong market presence and brand loyalty with iconic Australian brands such as Vegemite and Kraft Peanut Butter.
  • Bega has demonstrated financial robustness, with a 23.1% increase in normalised EBITDA and a 72.9% rise in EPS for FY2025, alongside significant debt reduction.
  • Despite external challenges such as fluctuating dairy prices, Bega's diverse brand portfolio and record-high fully-franked dividends position it as a compelling long-term investment choice in the ASX 200.

When I buy an ASX share, I tend to do so with the expectation of owning that share, whether it be on the S&P/ASX 200 Index (ASX: XJO) or not, for at least a decade. Hopefully longer.

But of course, finding those companies is easier said than done. I myself have bought ASX 200 shares before with the hope of owning a lifelong investment, only to have had to sell out of them as my original thesis failed to hold up with time.

Today, though, let's discuss an ASX 200 share that I think is worthy of consideration as a stock to own for the coming decade. This ASX 200 company shows signs of market dominance and significant brand loyalty with its portfolio of iconic brands. It also looks financially healthy and has established itself as a reliable payer of fully-franked dividends.

That ASX 200 share is Bega Cheese Ltd (ASX: BGA). You probably know Bega for its dairy products. After all, this is a company that has been around in some shape or form since 1899.

Why is Bega a top ASX 200 share for long-term investors?

But aside from Bega Cheese (which is actually produced by French dairy company Lactalis), Bega owns a wide stable of some of Australia's favourite household brands. There are juice labels Juice Brothers, Daily Juice Co, and Mildura, as well as dairy brands Yoplait, Dairy Farmers, and Pura.

But Bega has been on a bit of a buying spree over the past decade. For one, it acquired the rights for Kraft peanut butter from Mondelez International in 2017, which has subsequently been rebranded as Bega Peanut Butter. The company also owns the more health-focused Simply Nuts brand.

Even more significant was Bega's acquisition of Mondelez's other snack brands, which included Zoosh and the culturally iconic Vegemite. It was the first time Vegemite returned to an Australian owner in almost 90 years.

But that's not the largest acquisition Bega has made in recent years. This ASX 200 share purchased the non-alcoholic drinks division of Lion Dairy & Drinks from the Japanese giant Kirin in 2020. These included popular names like Farmers Union, Big M, Dare, and Zooper Dooper.

So Bega is a giant share in the ASX 200 consumer staples space.

But let's get into this company's financials. So Bega has just come off a bumper year. For its FY2025, it posted a normalised earnings before interest, tax, depreciation and amortisation (EBITDA) of $202 million, up 23.1% year on year. Earnings per share (EPS) rose by a stunning 72.9% on a normalised basis to 16.6 cents.

Meanwhile, the company is making enormous progress in paying off its debt from the acquisitions discussed above. Its net debt fell 22.4% over the 2025 financial year to $126.1 million.

At the same time, Bega paid out its highest dividend in history in 2025. The company announced two dividends, both worth 6 cents per share, this year. Both came fully franked too, as is Bega's habit.

Foolish Takeaway

Bega is not a perfect investment. The company is subject to many factors outside its control, most notably farmgate dairy prices. But no ASX share is perfect. With such a strong portfolio of beloved consumer brands, I think Bega is well placed to thrive over the coming decade.

Motley Fool contributor Sebastian Bowen has positions in Mondelez International. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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