Is It Time for Kraft to Increase Its Dividend?


The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor and analyst Austin Smith and senior technology analyst Eric Bleeker discuss topics across the investing world.

In today's edition, Austin and Eric move through another Dow Jones Industrials component, Kraft, and try to answer the question: "Is it time for it to up its dividend?" Taking a look across this space reveals that Kraft tends to trail its peer group, paying a smaller dividend than most, while also seeing a higher payout ratio. So while Eric and Austin think it is time for Kraft to raise its dividend, the reality is that it'll have a hard time doing so. But fortune will favor the patient here because once Kraft splits into two different companies, its domestic grocery division is expected to be dividend-focused and yield more than the larger company.

The reality is that you don't have to wait for a higher yield; you just have to take a look at our special free report: "Secure Your Future With 9 Rock-Solid Dividend Stocks." In it, you'll learn about nine income producers with which to line your pockets for the long run. Read more here.

At the time thisarticle was published Austin Smithowns shares of Unilever.Eric Bleekerhas no positions in the stocks mentioned above. The Motley Fool has no positions in the stocks mentioned above.Motley Fool newsletter services recommendUnilever. Try any of our Foolish newsletter servicesfree for 30 days. We Fools may not all hold the same opinions, but we all believe thatconsidering a diverse range of insightsmakes us better investors. The Motley Fool has adisclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.