Last week, Kellanova (NYSE:K) announced that it is planning to increase its quarterly dividend later this year, to $0.57. That would represent a one-cent increase from the $0.56 that the company is currently paying its shareholders. It represents a modest 1.8% increase.
Kellanova, which was previously part of the Kellogg Company (which split in 2023 into two separate companies), has many top brands in its portfolio, including Pop-Tarts, Eggo, Pringles, and others. With popular consumer brands, the business makes for a stable long-term investment. Last year, its net sales topped $13.1 billion and its profit came in at $951 million.
The stock has been a reliable income investment, paying its first dividend back in 1925. Since then, it has gone on to pay 398 straight quarterly dividend payments to investors. At the $0.57 quarterly dividend rate, the stock’s yield would be up to around 3.9%. That’s nearly three times the level of the S&P 500 average of around 1.4%.
Year to date, Kellanova’s stock is up 4%, slightly underperforming the S&P 500, which is up around 7% during the same time period. Kellanova’s stock is trading at 16 times its estimated future earnings and 1.5 times revenue. The stock is reasonably priced and it could make for a good option for long-term investors who want a fairly safe dividend stock to hang on to for years.
With some top brands, a high yield, and good financials, this is an investment you can safely hold in your portfolio for the long haul.
