On Friday, Kellogg () announced that it plans to hike its dividend 2%, in line with our projections. Though the firm boasts an outsize yield (3.26% annual yield), our Valuentum Dividend Cushion, which assesses a firm’s capital structure and future cash flow generation in comparison to its future dividend payments, indicates that future growth in its dividend will continue to be lackluster.
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— GlobeNewswire (Friday, April 20)
“Kellogg Company today announced that its Board of Directors declared a dividend of $0.43 per share on the common stock of the Company, payable on June 15, 2012, to shareowners of record at the close of business on June 1, 2012. The ex-dividend date is May 30, 2012. This is the 350th dividend that Kellogg Company has paid to owners of common stock since 1925…In addition, the Company’s Board of Directors announced plans to increase the quarterly dividend by 2 percent to $0.44 per share beginning with the third quarter of 2012.”