Bad News for Your "Recession Proof" Dividends

Updated

In the following video, analyst Austin Smith discusses how declining brand strength decreases future prospects for recession-proof giants including General Mills (NYS: GIS) , Kellogg (NYS: K) , and Kraft (NYS: KFT) . Although these companies all sport quality dividends, consumers are turning to cheaper private label brands and diminishing these companies' key competitive advantage -- their brands. With uncertainty for food producers, the retailers of these products, like Costco (NAS: COST) or Wal-Mart (NYS: WMT) , may prove to be better investments.

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The article Bad News for Your "Recession Proof" Dividends originally appeared on Fool.com.

Austin Smith owns shares of SUPERVALU INC. The Motley Fool owns shares of Costco Wholesale and SUPERVALU. Motley Fool newsletter services recommend Costco Wholesale. 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.

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