Based on Friday's closing price, Kellogg would yield 3% when factoring in the new dividend and the company has rock-solid dividend history, having paid a dividend since 1925 and the most recently quarterly payout represented the 342nd dividend the company paid. Kellogg's dividend growth is also note, coming in at about 50% over the past six years. The company also increased its dividend by more than 10% in the third quarter of 2009.
As have noted in the past, food stocks are a great avenues for income investors to find reliable dividend payers and consistently rising payouts. Kellogg is a prime example as the company's biggest rival, General Mills (NYSE: GIS). For roughly the same yield as Kellogg, General Mills pays a bigger dividend in dollar terms and Big G has sharply outperformed Kellogg over the past two years when it comes to capital appreciation.
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