Value Stocks at Loyal3? How about Kellogg’s?

cereal

Loyal3 has a decent offering of quality, dividend-paying companies.  However, the stock market is hitting new highs which means a lot of stocks are also near all-time high prices.  When searching for a “good” price, it is it difficult when stock prices keep climbing.  So how does an investor find a well-priced stock that is available on Loyal3?

While there are many data points to look at when researching a stock, a common indicator for relative price is the P/E ratio.  Currently, many stocks have high P/E ratios due to the high prices.  Finding a quality company with a low P/E ratio is a hard find but they do exist.  On Loyal3, Kellogg Company (K) touts a P/E of 12.9.  That is less than the industry average of 20 and the S&P 500 average of 18.3 according to Morningstar.  Also, K’s 12.9 P/E is lower than its 5-year average of 16.1.

Looking further at K, it pays a 2.7% dividend with a 5-year average of 3%.  While K isn’t a dividend aristocrat with consistent annual dividend increases, it has been paying dividends since 1925 according to Kellogg’s investor relations website.  K’s payout ratio is also at a 10-year low at 34%.  Additionally, K has relatively low volatility with a .53 beta.

While Kellogg’s is well known for its breakfast offerings, it also sells snack foods such as Keebler products, granola bars, cracker chips, fruit snacks, veggie burgers, and Pringles chips.  Here’s a link to the Kellogg Company Brand Portfolio:

http://www.kelloggcompany.com/en_US/brandportfolio.html

If you’re looking for a safe, value, dividend-paying stock on Loyal3, K may suit your needs.

Advertisements

5 thoughts on “Value Stocks at Loyal3? How about Kellogg’s?

  1. Hey DD,
    Very good analysis on Kelloggs. The P/E is fairly low like you stated and the dividend yield is high. I can see myself adding a position with (K) in the near future even if it`s a small one. Thanks for sharing and I`ll add you to my blogsters list so I can keep up with reading your articles.

    Like

  2. DM,

    Thanks for stopping by and also for adding me to your blogsters list. I’ve been adding K as it appears to be one of the best values at Loyal3 right now.

    Like

  3. Nice analysis DD, I’ll have to take another look at K and see if it makes sense for me. Can’t remember the reason I took it off my watchlist a while ago. I guess that’s the downside of trying to follow so many stocks. I forget about some of them sometimes. 😉

    Regards,
    SFZ

    Like

    • SFZ, I just saw K as a safe pick with low P/E but I’m sure it isn’t perfect. My current strategy involves a watchlist of about 30 stocks I’d like to own where I evaluate several factors to see what to buy next. K’s P/E and company history appealed to me. Next, I have my eyes on Kraft (KRFT) possibly.

      Like

  4. Pingback: July Stock Purchases | Frankly Frugal Finance

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s