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Re: The Final Nail in Kraft�s Dividend Growth Coffin

By: ribit in POPE | Recommend this post (0)
Mon, 04 Jun 12 1:33 AM | 67 view(s)
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Msg. 59730 of 65535
(This msg. is a reply to 59718 by Zimbler0)

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zimbler
...iffen da democrats have their way, there won't be any snack bidness in America. They are gonna save us from everything except being bored to death.

...if I had it, I would hold the internaional and sell the other.




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Liberals are like a "Slinky". Totally useless, but somehow ya can't help but smile when you see one tumble down a flight of stairs!




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The above is a reply to the following message:
The Final Nail in Kraft’s Dividend Growth Coffin
By: Zimbler0
in POPE
Sun, 03 Jun 12 6:46 PM
Msg. 59718 of 65535

http://dynamicdividend.com/kraft-kft-spin-off-dividend/

Kraft Foods (KFT) announced plans to split into two separate companies this morning, a move that would separate its plodding-but-efficient North American grocery operations from its rapidly-expanding global snack business.

Currently the second largest food company in the world, Kraft aims to create the separate entities (we’ll call them “North American Grocery” and “Global Snacks”) by executing a tax-free spin-off to shareholders sometime before the end of 2012.

. . . .

The bottom line for income investors: North American Grocery will have very little growth potential without Global Snacks, and so will its dividend. Any post-split payout increases will have to come from shoehorning inefficiencies out of existing operations. It will essentially be a bond stuck in a stock’s body.

This transaction will clearly be the final nail in Kraft’s dividend growth coffin, a sad turn for a company that just a few years ago sported a rapidly-rising payout despite its immense size.
>>>

Zim:
Now, I bought some Kraft maybe two and a half years
ago looking forward to a fast growing dividend . . .
No dividend growth at all for me . . .

Does anyone else think I should sell this dog?

Or wait till after the split?

Zim.


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