Everyone loves the brands but its an odd company that was only spun off 18 months ago so no one really knows if they are good or over priced. Well I think that Kraft is an investment for this time. It trades about $52 and pays 4% dividends as well as just having announced a staggering $3bn share buyback program. Looking at the team they seem focused on making their brands the worlds best in each category and eliminating second and third runners and I think for this company that makes sense. McD would hardly focus on their soft drinks for example they know what their brand is.
I think that this is a good play, its defensive and it pays good dividends and the stock is likely to rise slowly despite the market as people buy Kraft whether its a recession or not. No stock is recession proof as we saw in 2008/9 but during that time these family brands made good way.
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