3 Reasons to Buy Kraft

The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin gives investors three reasons to considering buying shares of Kraft today. He cites its upcoming spin-off, which many analysts believe will unlock value; potential efficiencies gained from restructuring; and its shareholder-friendly dividend as just three bullish catalysts. With a 3% dividend yield, Kraft certainly qualifies as market-topping, but the company still trails some of its peers in the packaged food space. Fortunately for the patient investor, once Kraft is split into two companies, its domestic grocery division is likely to be a dividend powerhouse. Management has indicated that a generous dividend will be a priority for the division and will likely rise to meet (if not match) other packaged good companies in the space.

As good as its 3% yield is, the fact that it could have been better kept Kraft off our list of nine incredible dividends. You can learn about the companies that made the cut -- just click here to read our special free report.

Austin Smith owns shares of Philip Morris International. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.


Read/Post Comments (0) | Recommend This Article (6)

Comments from our Foolish Readers

Help us keep this a respectfully Foolish area! This is a place for our readers to discuss, debate, and learn more about the Foolish investing topic you read about above. Help us keep it clean and safe. If you believe a comment is abusive or otherwise violates our Fool's Rules, please report it via the Report this Comment Report this Comment icon found on every comment.

Be the first one to comment on this article.

DocumentId: 1892698, ~/Articles/ArticleHandler.aspx, 8/1/2014 5:01:16 AM

Report This Comment

Use this area to report a comment that you believe is in violation of the community guidelines. Our team will review the entry and take any appropriate action.

Sending report...


Advertisement