Food Brand Stocks on the Rise Following Heinz's Acquisition (CPB, GIS, K)

Food Brand Stocks on the Rise Following Heinz’s Acquisition (CPB, GIS, K)

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Following the announcement of Warren Buffett’s deal to acquire Heinz (HNZ), many food brand stocks have been rising as investors have been piling in with hopes of a big score.

However, many analysts are skeptical of this move. Jim Cramer, for instance, has been warning investors that there is not much upward movement for these plays. Cramer says that these are stocks are “wildly expensive” right now; investors would be better off searching for other positions if share price appreciation is the biggest concern.

While these stocks are not likely to fall too much, investors shouldn’t expect to see a big jump in share price or a potential takeover running the stock up.

Big food brand stocks like Campbell Soup (CPB), General Mills (GIS), and Kelloggs (K) have all been on the rise since the Heinz deal announcement on February 14th; CPB is up 9.27% over that time, followed by GIS up 8.4% and Kelloggs up 3.37%.

Despite the potential upward resistance, these food brand stocks could possibly be good additions for those seeking stable, dividend paying investments. In fact, each of the stock mentioned above have a dividend yield above 2.75%. While this is nothing extraordinary, it is still something for investors to consider.

Campbell Soup and General Mills shares were up a fraction during Wednesday trading, while Kelloggs was down a fraction.

The Bottom Line
Shares of Campbell Soup Co. (CPB) have a dividend yield of 2.78% based on Wednesday’s intraday trading price of $41.71 and the company’s annualized dividend payout of $1.16 per share. General Mills (GIS) shares have a dividend yield of 2.83% based on Wednesday’s intraday trading price of $46.59 and the company’s annualized dividend payout of $1.32 per share. Shares of Kellogg Co. (K) have a dividend yield of 2.80% based on Wednesday’s intraday trading price of $61.33 and the company’s annualized dividend payout of $1.72 per share.

Campbell Soup Co. (CPB) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.3 out of 5 stars. General Mills is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars. Kellogg Co. (K) is not recommended at this time, holding a Dividend.com DARS™ Rating of 3.4 out of 5 stars.

Be sure to visit our complete recommended list of the Best Dividend Stocks, as well as a detailed explanation of our ratings system here.

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