Sept 30 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.