BATTLE CREEK, Mich. - WK Kellogg Co (NYSE: KLG) has announced a 3% increase in its quarterly dividend, raising the payout to $0.165 per share from the previous $0.16, bringing the annual dividend yield to 3.84%. Shareholders on record by February 28, 2025, will be eligible for the dividend, which is scheduled for payment on March 14, 2025.
The decision by Kellogg's Board of Directors to boost the dividend reflects the company's continued financial health and commitment to providing value to its investors. According to InvestingPro analysis, WK Kellogg maintains a strong financial health score of GREAT, with a notable free cash flow yield of 13%. The company's profitable status and high shareholder yield, identified as key strengths by InvestingPro, support this dividend increase decision. The ex-dividend date, which is the cutoff for eligibility to receive the dividend, is also set for February 28, 2025.
WK Kellogg Co, known for its iconic cereal brands such as Corn Flakes, Frosted Flakes, and Rice Krispies, has been a staple in American households for over a century. The company's portfolio also includes popular brands like Froot Loops, Kashi, Special K, Raisin Bran, and Bear Naked. Kellogg's not only focuses on delivering quality products but also emphasizes sustainable business practices through its Feeding Happiness™ strategy, aiming to contribute positively to the wellbeing of families, kids, and communities.
This dividend increase announcement is based on a press release statement from WK Kellogg Co. (NYSE:K) The company's actions demonstrate its ongoing effort to enhance shareholder returns while maintaining a strong market presence and fostering community connections through its beloved brand characters and commitment to nourishment and joy.
In other recent news, WK Kellogg Co has experienced a series of significant developments. Jefferies analyst Rob Dickerson has revised the stock target for the company down to $16 from $19, maintaining a Hold rating. This adjustment follows a decrease in Kellogg's fourth-quarter sales and volumes, which were notably steeper than the previous quarter's decline and underperformed compared to the ready-to-eat cereal category.
Similarly, TD Cowen analysts have downgraded WK Kellogg shares from Hold to Sell, adjusting the price target to $16. The downgrade is attributed to the company's significant market share losses in the fourth quarter and an uninspiring new product pipeline. Analysts also highlighted potential risks associated with the company's history of tense labor relations, particularly in relation to the ongoing $500 million supply chain rationalization project.
In a different move, WK Kellogg Co has amended its existing credit agreement to extend the availability of a $250 million loan facility until June 30, 2025. This extension does not alter any other terms of the original credit agreement and is seen as a strategic financial management move by the company.
Despite these challenges, the company continues its efforts to streamline its supply chain and introduce new products, although analysts from both Jefferies and TD Cowen have expressed caution about Kellogg's ability to navigate these changes effectively. These are the recent developments for WK Kellogg Co, as it seeks to stabilize its position in a competitive market.
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