The board of directors at
) recently declared a quarterly dividend of 49 cents per common
share, up from 46 cents paid previously.
The 6.5% increase is in line with the cereals and snack
company's plans to hike dividend, announced in April, beginning
The quarterly dividend is equivalent to an annual dividend of
$1.96 per share, up from $1.84 paid previously. The new dividend
will yield approximately 3.0% annually.
The increased dividend is payable on Sep 15, 2014, to
shareholders on record on Sep 2.
Kellogg is also due to report its second-quarter results later
In the second quarter, management expects to return to positive
top-line growth after recording sales decline in the previous two
quarters. The company expects volume trends to improve over the
remainder of the year driven by significant increase in brand
Kellogg has strong commercial programs in place and plans to
increase investments in core categories, with key programs
scheduled to start in the second quarter. Moreover, price mix is
expected to remain positive throughout the year.
However, adjusted operating profit is expected to decline
slightly due to higher brand building investment. Brand building
investments are expected to increase in a high single-digit range
in the quarter, followed by further increase during the third
quarter. Adjusted currency neutral earnings are expected to be
approximately $1.02 per share, flat with the comparable last-year
Other Stocks to Consider
Kellogg currently carries a Zacks Rank #4 (Sell). Better-ranked
food stocks include Treehouse Foods, Inc.(
), Premier Foods plc (
) and Pinnacle Foods Inc.(
). While Treehouse Foods sports a Zacks Rank #1 (Strong Buy),
Premier Foods and Pinnacle Foods have a Zacks Rank #2 (Buy).
Want the latest recommendations from Zacks Investment Research?
Today, you can download 7 Best Stocks for the Next 30 Days.
Click to get this free report
KELLOGG CO (K): Free Stock Analysis Report
PINNACLE FOODS (PF): Free Stock Analysis Report
TREEHOUSE FOODS (THS): Free Stock Analysis
PREMIER FOODS (PRRFY): Get Free Report
To read this article on Zacks.com click here.