Replies to Msg. #721553
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 Msg. #  Subject Posted by    Board    Date   
59730 Re: The Final Nail in Kraft�s Dividend Growth Coffin
   zimbler ...iffen da democrats have their way, there won't be any snac...
ribit   POPE   04 Jun 2012
1:33 AM
59723 Re: The Final Nail in Kraft�s Dividend Growth Coffin
   I have some cats that really like their cheese.
DGpeddler   POPE   03 Jun 2012
9:31 PM

The above list shows replies 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
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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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