Kellogg's stock could be considered as a tool to diversify your investment portfolio. This asset is less volatile in 2022 than many other companies that suffered when the stock market crashed. Before you start investing, study the corporation's financial performance and analysts' forecasts.
Kellogg is a well-known American food company that makes breakfast cereals, snacks and other food products. Founded in 1906 by Will Keith Kellogg, the corporation has since become a household name, and its products are sold in more than 180 countries.
Kellogg's shares debuted on the stock market in 1952. Nowadays the securities of the breakfast producer are listed on the stock exchange under the ticker NYSE: K. Kellogg's stock originally went for $23.75 at the IPO. In December 2022, the stock was quoted at $71.
The company's best-known product is cereal, which is made by brands such as Corn Flakes, Frosted Flakes, Special K and Rice Krispies. These cereals have become an integral part of many people's morning routine, and over the years, their popularity has only grown. In addition to cereal products, Kellogg's produces a wide range of snacks, including Pop-Tarts, Keebler cookies and Pringles potato chips.
Kellogg's is committed to making healthy and nutritious products. The corporation works to ensure that its products are of the highest quality and is constantly innovating to create new and better products. The company also makes sure that its products are produced in an environmentally friendly way, and participates in a number of initiatives to promote healthy eating.
Kellogg is also committed to helping society. It works with organizations such as the United Nations World Food Program to provide food to those in need, and has donated millions of dollars to organizations that promote health and education around the world.
Despite the difficulties of 2021, Kellogg was able to withstand the headwinds and emerge from the crisis a stronger corporation than before. A fire at a grain plant and a strike at the company's grain division were quickly overcome thanks to the hard work of employees, allowing the food manufacturer to meet demand for its products. Despite some challenges, Kellogg's 2022 stock price didn't face a major drawdown like many other companies.
Kellogg recently shared some positive news, revising its 2022 organic sales growth forecast from 4% to 7-8%. In addition, the earnings forecast was raised by 1%, although the increase is modest compared to the significant increase in expected revenue. Of course, inflation continues to act as a double-edged sword: it boosts sales, but at the same time reduces profits.
With a portfolio of well-known brands, Kellogg's has been a huge success in 2021 with over $14.1 billion in sales and an impressive dividend yield of 3.2%. The lion's share of revenue came from the Global Snacking division, which accounted for 17%, while the MorningStar Farms division contributed 3% to the total.
In appreciation of the strong performance in the second quarter of 2022, shareholders received a dividend of $0.58 per Kellogg share. Going forward, the corporation plans to increase its dividend payments. This provides investors with a lucrative high-yield opportunity.
At the time of the Kellogg stock price forecast (December 23, 2022), the stock was quoted at $71. In 2023, analysts expect the corporation's stock price to be in the $70-75 range. If the company overcomes difficulties, Kellogg's shares may rise to $100 or more in 2025. In case the growth of financial indicators slows down, the quotes may fall below $50 by that year.
In March 2020, Kellogg's stock was trading at $60. After the coronavirus pandemic began, the stock price started to rise.
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From December 2021 to December 2022, Kellogg stock went from $63 to $71.
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Nestle, McDonald's, Coca-Cola, Beyond Meat, Tyson Foods are also in the food industry.
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