Wednesday, October 8, 2014

Kraft raises dividend 4.76%---New yield is 3.95%

On Tuesday Kraft (KRFT) announced that is will raise its quarterly dividend from $.525 to $.55 which represents a 4.76% increase.  Since I own 75 shares, my yearly dividends will increase by $7.50.  While this isn't the biggest dividend raise, it is good to see a strong company will an already high yield give its investors a pay raise.

There has been some churning in the markets recently which is a good thing.   Since I am still in the accumulation phase of the FI journey, this means I can achieve greater future cash flows with less current capital investment.  Energy, heavy machinery, autos, and commodities continue to take the brunt of the market's fury.  GE, DE, CAT, GM and <Name your oil/energy company here> are becoming more attractive by the day.  Hopefully a little more blood will hit the streets during the rest of this year so we can take advantage of some quality companies with very attractive yields.

Record date is October 17th and the pay date is October 31th.

18 comments:

  1. Sweet, I just got a raise for doing nothing. :-)

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    Replies
    1. Captain,

      I agree. Getting extra money for just being alive is a good thing!

      MDP

      Delete
  2. Nice, I just started a position in this company the past month!!

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    Replies
    1. n0ferz,

      Congrats on your pay raise. I'm happy to be a fellow shareholder with you.

      MDP

      Delete
  3. MDP,
    I agree with you 100% on the last paragraph, our portfolio may look/feel decrease in value but it is the best time to pick up some more shares!
    FFF

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    1. FFF,

      It's time to hold your nose and average in knowing things might be rocky for a while. Long term investors will be rewarded.

      MDP

      Delete
  4. MDP,

    Decent increase, similar to MCD. I may have purchased some shares last week into Kraft as well. Was thinking it was going to be higher than 5%, but all good, all good. Nice work for owning shares MDP.

    -Lanny

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    1. Lanny,

      I agree 100% with your assessment. MCD and KRFT are making conservative raises based on current operation and are not stretching outside of their earnings.

      MDP

      Delete
  5. I get more raises in quality companies like Kraft than I ever would at my jobs. I have been adding to Kraft the last few weeks so I am happy they increased their dividend.

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    1. DM,

      I'm glad you have been adding to your Kraft positions. I think KRFT still has good value here without the volatility of some of the energy names. I will be adding more shares probably at the beginning of the year. I will probably focus on energy holdings during the rest of the year as the opportunity looks better in that sector.

      MDP

      Delete
  6. MDP,

    Fairly solid, and in line with expectations that management had set forth some time ago. ~4% yield and ~4.5% dividend growth sets you up for 8.5% total returns, which is certainly nothing to laugh at.

    I think this is probably what investors are looking at for the long haul with this stock, especially with the debt load and lack of international exposure now. Again, not bad at all considering the defensive and stable nature of the business.

    Best regards!

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    1. DM,

      I am perfectly fine with this raise especially from a boring food company. In fact I'll take this kind of raise every year.

      MDP

      Delete
  7. MDP,

    Long time reader, 1st time commenter. Nice post, its great to see my stocks giving me raises even if they are only slightly above inflation. I would assume this is payable 1st quarter of next year?

    - Dividend Gremlin

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    Replies
    1. DG,

      Sorry I didn't mention the pay date. It is October 31 and the record date is October 17.

      MDP

      Delete
  8. That's a decent raise, I may have to look at KRFT again as a purchase or at least an options trade. There's so many good companies , it's hard to own them all.

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    1. AAI,

      I agree wholeheartedly. It now takes more time to pick for my weekly purchases and I find myself buying more companies each week as many offer compelling values.

      MDP

      Delete
  9. Kraft pulling out some singles????? Sorry I had too lol!

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    Replies
    1. AG,

      I'll take some extra "cheese" anyway I can get it! LOL

      MDP

      Delete