Join        Login             Stock Quote

One Of The Most "Boring" Stocks On The Market Offers Growth And Income

 December 13, 2011 11:58 AM

Like many investors, you may favor stocks that pay a healthy dividend but can also shoot up nicely in value. In terms of performance over the long haul, these growth and income stocks are often comparable to (and sometimes even better than) the market. Yet, in many cases they're much less volatile because dividends help temper price fluctuations -- a feature that's more desirable than ever, since massive swings in the major market indexes are now so commonplace.

One growth and income stock I strongly suggest you consider has a dividend yield of 3.5%. Because the company has raised its dividend in 46 of the past 50 years, I expect the dividend to remain healthy going forward. (And with a track record of raising dividends like that, it wouldn't be long before you'd be earning a yield of 5%, 7% -- even higher, based on your original purchase price and how long you hold the stock.)

Another tempting feature of this stock is analysts see the per-share price climbing from roughly $49 now to $75-$95 -- or around 50%-95% higher -- within three to five years. This suggests the potential for yearly returns in the 8.5%-14.5% range. Not bad at all, and quite possibly better than what the market will deliver during that time.

The stock I'm talking about: Kellogg Co. (NYSE: K).

Surprised? I thought you might be. But certainly not because of Kellogg's yield, which has remained quite healthy at about 3%-3.5% for the past few years. I'm referring more to the stock's total return. This has averaged a mere 2.5% annually during the past five years -- not exactly something that would earn Kellogg a reputation as a growth stock.

As I said, though, analysts predict this is going to change, and I think their predictions are more than just hot air. I like the way Kellogg, the top domestic producer of breakfast cereals (with a one-third market share), has positioned itself to regain momentum.

Next Page >>12
iOnTheMarket Premium


Comments Closed

rss feed

Latest Stories

article imageUS REITs Edged Higher Last Week As Emerging Markets Slumped

Real estate investment trusts (REITs) in the US took the lead in last week’s shortened holiday trading week read on...

article imageA Contrarian Perspective On The Short EuroTtrade

As the euro continues to drift lower, it has become the accepted wisdom that we are headed for parity with read on...

article imageEmerging-Markets Stocks Took The Lead Last Week

Emerging-markets equities enjoyed a solid rise last week among the major asset classes, based on a set of read on...

article imageDoes Your Latest Investment Pass This Test?

On Wednesday, I sounded the alarm about the problems looming for some consumer staples stocks. In short, read on...

Popular Articles

Daily Sector Scan
Partner Center

Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.