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Kraft: Bringing the cheddar to investors

Staff Writer

Published: Wednesday, March 10, 2010

Updated: Wednesday, March 10, 2010 14:03

            Hello there, Munch readers, today I am giving you a company that is not only creating strong cash flows but also a worldwide brand.

            The company is Kraft (KFT) and has a strong balance sheet. During the 2008-2009 year, Kraft was able to increase its assets while lowering its debt simultaneously. This was during the financial crisis, yet Kraft managed to increase operating cash flow.    

 

            Management has been efficient in terms of cost-cutting and has provided incentives to stockholders. One of these incentives is the 4% dividend pays annually to its shareholders, a dividend yield which has been increasing every year since Kraft became public. Kraft has developed a strong foothold in the confectionaries industry, too.

           

            Kraft is a safe investment, and I predict that the company will outperform the S&P 500 index average over the next five years. As always, do your own research before trading any securities. Good Luck and Happy Trading.

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