Kelloggs Company– Stock Analysis for Dividend Portfolio

logo_kelloggsKellogg’s Company (K) is a leading producer of ready-to-eat cereal, and also sells convenience foods such as cookies, crackers, cereal bars, fruit snacks, and frozen waffles.

For starter, K is neither a Dividend Aristocrat nor member of Broad Dividend Achiever. This is primarily because it had flat dividends between 2001 and 2004. However, it has paid consistent and stable dividends (without cutting) since 1985. The most recent dividend increase was in August 2009. My objective here is to analyze if how it rates on my scale of risk-to-dividends.

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Indian Economy – A Better Destination in Emerging Markets

globeFew weeks ago, I posted an article earlier which discussed why emerging markets (e.g. BRIC) cannot be clubbed together. There are so many significant differences that it makes sense to look at it individually. Most likely it will also provide maximum possible return for our invested dollars. While China continues to receive most attention in the press, I believe its India that provides a much better option for small individual investors. Following are three reasons I believe India has relatively more fundamental strength than other countries.

  • Inward Consumption Based Growth: India’s economy is consumption oriented when compared to other emerging markets. India’s export contributes less than 15% to its $1.2T GDP. The IT outsourcing services and back office has garnered most of the business media coverage; however, these industries have less than 8% contribution to the GDP and employ less than 5 million people. This is an indicator of growth by internal production and consumption. It is less reliant on exports. Quite contrarily, these technology services perform better in recession, because it is all about optimizing operational cost. In addition, its reserve bank (a.ka. central bank) has very conservative monetary policy, which is why we did not see failure of the banks (or banking system) during the current financial melt down. There were no widespread bank bailouts.

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Managing Trading Process for Income Generation

photo.cmsThere are numerous ways to generate an income and make a decent living. I have observed that many folks consider it a panacea to discussing about investing and trading with little bit intelligence. Irrespective of whether there is substance behind it or not, it at least creates an impression of smartness and being intelligent. At personal level, I respect every style of investing and trading. But I remain skeptical in the context of applying to my own situation. I want to follow method or style what works for me. There are different styles, methods, and strategies for investing in stocks.

Readers of this blog are already accustomed to my approach of investing in stocks and remaining focused on dividends. The investment management process I use includes qualitative and qualitative analysis and asset allocation based risk management process. This works for me. And I keep tweaking and adapting if there is a need to make changes. Out there, there are many individuals who focus on trading (swing, positional, technical, momentum, etc.) and some other folks focus on opportunistic or speculative trades. Like every coin has two sides, I believe there are pros and cons of every method. It really boils down to how one chooses to look at depending upon your personal situation. Every individual has to figure out what works best for them. I always keep asking this question, what is wrong in trading if one can generate income with consistency using trading strategies. It doesn’t work for me, so what, it may work for some other smart guy!

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Role of Exchange Traded Funds in Investor’s Portfolio

600px-Globe.svgIn last five years or so, Exchange Traded Funds (ETFs) have grown in numbers and it asset values. In my view, ETF is another form of investing vehicle available (among many others) to investing or trading community. The major attraction for ETF has been low cost expenses and fees in comparison to mutual funds and ability in trade during market hours. Like any other investing vehicles, I believe ETFs are good vehicles depending upon how/why an individual investor uses in its portfolio. The simplicity with which you can buy and sell an ETF makes it even more difficult to understand how it is structured, what are its constituents, etc., So before you buy an ETF you much understand why you want to buy it and what role it plays in your portfolio. Broad market exposure and access to alternative assets are two important roles ETF can play in your portfolios.

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Dividend Tree Potpourri – October 18, 2009

During the week I participated in blog carnivals and continue to read articles from fellow bloggers. I am listing some of the articles that I enjoyed reading.

Economy, Finance, Investing.…..

These are some diverse set of articles from fellow bloggers and business magazines. I hope you enjoy reading all or some of these interesting posts.

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