Raw Deal for Kraft Shareholders

dealRecently, Kraft Foods not only froze its dividends, but also attempted an acquisition of Cadbury (CBY). Dividend Growth Investor presented a very good argument to support his decision of holding off a new position in KFT. Certainly, one would tend to believe that KFT coming from the stable of Altria Group (MO) would show dividend friendliness. Its management would understand the real meaning of value or growth. However, recent actions of freezing dividends, stopping share repurchasing, and attempting an acquisition belies the common school of thought.

I had presented stock analysis for CBY and observed that it is good dividend growth company. CBY is an international dividend achiever has been raising its dividends for last 11 years. The most recent dividend increase was in February 2009. Investors holding CBY shares are hedged against international growth, dollar fluctuations, and emerging markets. In addition, it continues to maintain its leadership position in confectionery business with its unparalleled reach across the global, multiple brands, and diversified revenue streams. Therefore, CBY knows its market positioning and brand potential.

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CBY – Stock Analysis for Dividend Growth Portfolio

cadbury_logoCadbury Plc (CBY), a UK-based Company, is world’s leading confectionery company. In year 2008, it divested its beverage business into separate entity. Now Cadbury Plc is solely a confectionery company. It offers chocolate, gum/mints, and candy products under various brand names, including Bubbaloo, Cadbury Creme Egg, Cadbury Dairy Milk, Clorets, Dentyne, Eclairs, Flake, Green & Blacks, Halls, Hollywood, Stimorol. It operates in 60 countries.

CBY is an international dividend achiever has been raising its dividends for last 11 years. The most recent dividend increase was in February 2009. CDY can play a role of international equity in a dividend portfolio. It can also be viewed as a hedge for dollar and emerging markets (20% revenue from emerging markets). My objective here is to analyze if CDY still continues to be a good dividend growth stock and how does it rate on my scale of risk-to-dividends. continue reading rest of the article….

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