Shopping for Opportunities
by Russ MacKay
This week, an icon in the consumer food and beverage company, Kraft Foods, has decided to split the company into two new entities; Kraft Foods Group (KRFT) and Mondelez International (MDLZ).
Kraft Foods Group will continue its 100+ year tradition as a global leader in consumer packaged food and beverages, offering investors an attractive dividend (in the 4.5% range, plus modest growth).
Mondelez is the global snacking arm of the old Kraft Foods, offering consumers products including biscuits, chocolate, candy, gum, coffee and powdered beverages. While this company will offer up a lower dividend yield (2% range), we believe will offer faster earnings growth.
Now investors have a better choice when it comes to shopping for their portfolio.