Kraft Foods Group
- PE Ratio: 17x
- Dividend Yield: 3.6%
- Payout Ratio: 49%
You know them, you love them: Oscar Meyer, Jell-O, Maxwell House and of course its famous Macaroni and Cheese are among the food brands left under the Kraft Foods (KRFT) banner after its split with Mondelez (MDLZ) last year.
What those iconic names mean for your RMD dollars is a steady stream of consumers heading down the aisles picking up products and growing revenues. Even nicer is the company recently upped its 2013 EPS expectations, adding 23% to EPS forecasts according to Adam Benjamin.
KRFT’s 50 cent per share dividend is an easy cover for KRFT, and with a payout ratio under 50% and nobody getting tired of macaroni and cheese, expect that dividend to increase nicely and for a long time. Just what you want from your RMD investment.