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Kraft Foods Group Inc (NASDAQ:KRFT) Lifts Dividend By 5%, Yield Reaches 3.9%

Boston, MA 10/08/2014 (wallstreetpr) – Kraft Foods Group Inc (NASDAQ:MRFT) said that its Board of Directors has given its permission to lift its quarterly cash dividend rate by 5%. As a result, it would pay a dividend of 55 cents a share compared to 52.5 cents a share paid in the previous quarter.

The company started paying a dividend only from December 2012, and it has already implemented two increases in the dividend rate.

Payment Of Dividend

According to its statement issued to the media, it has fixed October 17 as the record date for determining eligible shareholders to receive the dividend. The increased quarterly dividend would be paid to the shareholders on October 31.

On an annualized basis, the current dividend worked out to $2.20 a share. It has also fixed October 15 for turning the stock to become ex-dividend. The latest dividend rate indicated a yield of 3.90%. For the ten year projected period also, the dividend yield represented 3.90%. As the Kraft Foods Group Inc (NASDAQ:KRFT) started paying a dividend only recently, the average growth in dividend was not available for the last five-year period.

The current dividend rate represented a payout ratio of 52.00%.

Dividend History

Kraft Foods Group Inc (NASDAQ:KRFT) came on the dividend paying list of companies in December 2012, data from Nasdaq indicated. It started to pay 50 cents a share to its shareholders. It paid the same dividend the three consecutive quarters till June 2014.

The company lifted the dividend rate by 5.0% to 52.5 cents a share from October last year and retained the same dividend rate till July current year. After four quarters, it has again lifted the dividend rate by 5%.

Since it started paying a dividend only recently, the average dividend growth rate could not be ascertained for the five-year period. However, the positive factors from a short dividend history were that it raised its dividend rate twice, and the quantum of dividend payout ratio was also above 50%. This suggests that the Kraft Foods Group Inc (NASDAQ:KRFT) would not be averse to increasing the dividend rate in the coming years.

Published by Nicholas Maithya

Nicholas is a Financial Analyst by profession, who enjoys writing about investments, technological developments, business, economics and other financial topics at various financial publications. Join him here on Wallstreetpr.com as he endeavors to deliver to you the latest breaking news on the above mentioned fronts. Contact him by email at [email protected] or follow Nicholas Kitonyi @nmaithyak on Twitter.

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