by Alyssa Oursler | October 2, 2012 9:16 am
Want to invest in brands like Cadbury and Oreos? Well, starting today, that means jumping on board Mondelez International (NASDAQ:MDLZ) — not Kraft Food Group (NASDAQ:KRFT).
Yes, it’s now official. Mondelez has split from its parent company after more than a year of planning, and began trading this morning.
Kraft will consist of the North American grocery business, leaving Mondelez the snack side of the business — and making it the world’s biggest chocolate, candy and biscuit maker. It has annual revenue of around $36 billion.
Many analysts are bullish on the stock, with Bloomberg reporting predictions of consistent double-digit growth.
Investors may be wary, though, because more than a third of the company’s annual revenue comes from Europe — a region with its share of challenges. Plus, Kraft already warned that Mondelez’s earnings will be hurt by currency exchange in the coming year.
If investors want stability, though, they can simply hit up the Kraft side of things, as the now-grocery stock offers a steady dividend yielding around 4.5%.
The parent company was recently booted from the Dow after under four years because the spin-off left it with a smaller market cap and lower revenue from the U.S. Health care stock United Health (NYSE:UNH) slid into its spot in the index.
As of this writing, Alyssa Oursler did not own a position in any of the aforementioned securities.
Source URL: http://investorplace.com/2012/10/kraft-spin-off-mondelez-starts-trading-today/
Short URL: http://invstplc.com/1nycV85
Copyright ©2017 InvestorPlace Media, LLC. All rights reserved. 700 Indian Springs Drive, Lancaster, PA 17601.