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Kellogg Declares Dividend of $0.52 per Share

Gabriel Kane - Author

Oct. 25 2016, Updated 8:06 a.m. ET

Price movement

Kellogg (K) has a market cap of $26.0 billion. It rose 0.15% to close at $74.34 per share on October 21, 2016. The stock’s weekly, monthly, and year-to-date (or YTD) price movements were -1.5%, -5.0%, and 4.9%, respectively, on the same day. K is trading 2.6% below its 20-day moving average, 5.9% below its 50-day moving average, and 2.8% below its 200-day moving average.

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Related ETF and peers

The PowerShares High Yield Equity Dividend Achievers Portfolio ETF (PEY) invests 1.5% of its holdings in Kellogg. The ETF aims to tracks a yield-weighted index of US companies that have increased their annual dividends for at least ten consecutive years. The YTD price movement of PEY was 19.5% on October 21.

The market caps of Kellogg’s competitors are as follows:

  • Mondelēz International (MDLZ) – $65.5 billion
  • ConAgra Foods (CAG) – $21.1 billion
  • Post Holdings (POST) – $5.2 billion

Kellogg declares dividend

Kellogg has declared a regular dividend of $0.52 per share on its common stock. The dividend will be paid on December 15, 2016, to shareholders of record at the close of business on December 1, 2016.

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Performance of Kellogg in 2Q16

Kellogg reported 2Q16 net sales of $3.3 billion, a fall of 5.7% over the $3.5 billion reported in fiscal 2Q15. Sales from its US morning foods, US snacks, North America Other, Europe, Latin America, and Asia Pacific segments fell 2.0%, 3.8%, 7.5%, 3.2%, 37.8%, and 2.6%, respectively, between 2Q15 and 2Q16. Sales from its US specialty segment rose 0.37% in the same period. The company’s cost of goods sold as a percentage of its net sales fell 5.2%, and its operating profit rose 9.0%.

Its net income and EPS (earnings per share) rose to $280.0 million and $0.79, respectively, in fiscal 2Q16, compared with $223.0 million and $0.63 in fiscal 2Q15. Kellogg’s cash and cash equivalents rose 111.6%, and its inventories fell 2.7% between fiscal 4Q15 and fiscal 2Q16. Its current ratio and long-term debt-to-equity ratio rose to 0.65x and 3.1x, respectively, in fiscal 2Q16, compared with 0.56x and 2.5x in fiscal 4Q15.


The company has made the following projections for 2016:

  • currency-neutral comparable EPS of $4.11–$4.18
  • currency-neutral comparable operating profit growth of 15.0%–17.0% due to the timing of price actions in its Venezuelan business
  • currency-neutral comparable net sales growth of 4%–6%
  • cash flow of ~$1.1 billion

Next, let’s take a look at Procter & Gamble (PG).


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