Sara Lee to Split in Twain; Will Pay $3 Dividend in 2012 (SLE)

By Staff,

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Food products maker Sara Lee Corp. ( SLE ) on Friday announced it would split into two separate companies and pay a massive $3 per-share dividend in 2012.

The company said the first half of the break-up will be made up of its North American retail and food service businesses, and will retain the Sara Lee name. The other portion will consist of its international bakery and beverage businesses, as well as its North American beverage business. That second entity has yet to be named.

The move comes amid months of speculation regarding potential buyout offers for SLE, which have now fallen off the table. The break-up is expected to close in 2012.

In a separate announcement, the company said it would pay a special one-time $3 per-share dividend in 2012. It will fund the dividend via the sale of its North American fresh bakery business.

Sara Lee shares were mostly flat in premarket trading Friday.

The Bottom Line
Shares of Sara Lee ( SLE ) have a 2.61% dividend yield, based on last night's closing stock price of $17.64. The stock has technical support in the $16 price area. If the shares can firm up, we see overhead resistance around the $20 price level.

Sara Lee Corp. ( SLE ) is not recommended at this time, holding a DARS™ Rating of 3.3 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks , as well as a detailed explanation of our ratings system here .

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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This article appears in: Investing Stocks
Referenced Stocks: SLE

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