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Kellogg Announced 367th Dividend Payment to Shareholders

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Kellogg to pay its 367th dividend

In a press release on July 29, a week before Kellogg Company (K) announced its fiscal 2Q16 results, it announced a quarterly dividend of $0.52 per share on its common stock. This will be paid on September 15, 2016, to shareowners of record at the close of business on September 1, 2016. This marks the 367th dividend that the company will pay to owners of its common stock since 1925.

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Dividend increase

In a press release in April, the company announced its dividend increase of 4% for 2016. The dividend was increased to $0.52 per share. The increased dividend started in the third quarter of fiscal 2016. This brought the company’s dividend payout ratio to slightly above 50%.

Currently, Kellogg has a dividend yield of 2.5%. Management increased the dividend at a CAGR (compound annual growth rate) of 4.7% over the last five years. The company also had earlier approved a $1.5 billion share repurchase program that it expects to run through 2016 and 2017. It expects to repurchase shares worth ~$700 million–$750 million in 2016.

Below are the dividend yields for Kellogg’s peers, as of August 5:

  • General Mills (GIS) has a dividend yield of 2.7%.
  • McCormick & Company (MKC) has a dividend yield of 1.7%.

The First Trust Value Line Dividend Index Fund (FVD) and the iShares S&P Global Consumer Staples ETF (KXI) invest 0.52% and 0.59% of their respective portfolios in Kellogg.

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