Sept 30 (Reuters) - Kraft Foods Group Inc, which will spin off from Kraft Foods Inc on Monday, is an attractive buy for income investors but a better bet is the remaining company, to be called Mondelez International Inc , Barron's said.
Kraft Foods Group, which will consist of well-known grocery brands such as Oscar Mayer, Kraft, Jell-O and Planters, will have a 4.5 percent dividend yield, Barron's said on Sunday, based on when-issued trading in the shares last week.
That is the highest yield among major food companies and should lead to one of the industry's highest valuations, the financial weekly said.
Because of the high dividend, increases are unlikely, Barron's said, adding that investors may be better off buying shares of Kellogg or General Mills, which have lower valuations and better dividend growth prospects.
By contrast Mondelez, which will be home to Cadbury chocolates and Oreo cookies, could be a good bet for growth investors, Barron's said, since a large portion of its revenue comes from high-growth developing markets.