Kellanova announces regular dividend of $0.57 per share

CHICAGO – Kellanova (NYSE: K), formerly known as Kellogg Company (NYSE:), has declared a regular quarterly dividend of $0.57 per share, marking the company’s 399th consecutive dividend since 1925. This dividend is payable on September 13, 2024, to shareholders on record as of the close of business on September 3, 2024, with the ex-dividend date also set for September 3, 2024.

Kellanova is recognized as a leader in the global snacking sector, as well as in the international cereal and noodles market, and North America’s frozen foods industry.

With a portfolio that includes prominent brands such as Pringles, Cheez-It, Pop-Tarts, Kellogg’s Rice Krispies Treats, RXBAR, Eggo, and MorningStar Farms, the company has positioned itself as a major player in the food industry. The company aims to become a top-performing snacks-led powerhouse, leveraging the strength of its brands and the dedication of its workforce.

In 2023, Kellanova reported net sales of $13 billion, reflecting its significant presence in the food sector. The company has expressed a commitment to sustainable and equitable food access, addressing issues of hunger, sustainability, wellbeing, and equity, diversity & inclusion.

Kellanova’s stated purpose is to create better days and ensure everyone has access to quality food through their trusted brands. The company has set an ambitious goal to create better days for 4 billion people by the end of 2030, using 2015 as the baseline year for its initiatives.

This dividend announcement is based on a press release statement from Kellanova. It is a continuation of the company’s long-standing tradition of providing returns to its shareholders, a practice that has been consistent for nearly a century. Shareholders looking forward to the dividend payment in September will need to have their shares recorded by the company by the beginning of the month to be eligible for the distribution.

In other recent news, Kellanova’s earnings and revenue have been a focal point for investors. Deutsche Bank adjusted its stance on the company, reducing the price target while maintaining a Hold rating. The bank anticipates Kellanova may adopt a more cautious approach due to increased revenue and gross margin pressures.

Kellanova is expected to reaffirm its guidance, which includes over 3% organic growth, a gross margin above 35%, and an adjusted operating profit between $1.85 and $1.90 billion, along with an adjusted EPS of $3.55 to $3.65.

Moreover, Kellanova announced an expansion of its creative agency partnerships to enhance its brand growth strategy. This strategic move aims to introduce future-fit capabilities across its agency ecosystem.

In addition, Piper Sandler maintained a Neutral rating on Kellanova with a steady price target of $60.00, and DA Davidson raised its price target for Kellanova shares to $72, citing the company’s post-spinoff performance.

These are recent developments, and the analysis mainly comes from Deutsche Bank, Piper Sandler, and DA Davidson. The earnings and revenue information mentioned above is crucial for investors, with the earnings estimates coming from these analysts who make projections. It’s important to note that this article provides a snapshot of recent news items and does not offer a comprehensive view of the company.

InvestingPro Insights

Kellanova (NYSE: K) continues to demonstrate its commitment to shareholders with its 399th consecutive dividend, a testament to its financial stability and consistent performance. With a strong market capitalization of $19.59 billion, the company stands as a formidable entity in the snacking and packaged foods industry. Reflecting on its financial health, Kellanova’s dedication to shareholder returns is further underscored by an impressive dividend yield of 3.91%, which is particularly attractive to income-focused investors.

Despite a challenging economic environment, Kellanova has maintained its dividend payments, a feat that aligns with the InvestingPro Tip highlighting a company that has sustained dividend payments for 54 consecutive years. This level of reliability is a key factor for investors seeking stable dividend income. Kellanova’s P/E ratio stands at 21.35, which, although high, may be justified by the company’s robust brand portfolio and market position. It’s worth noting, however, that the company is trading at a high Price / Book multiple of 6.22, which suggests a premium valuation compared to its book value.

Investors considering Kellanova should be aware that five analysts have revised their earnings downwards for the upcoming period, which could indicate potential headwinds or a conservative outlook for the company’s financial performance. Nevertheless, Kellanova’s proven track record of profitability over the last twelve months, as indicated by a gross profit margin of 33.4%, suggests that the company has managed to navigate market fluctuations effectively.

For those interested in deeper analysis, there are additional InvestingPro Tips available that provide further insights into Kellanova’s financial metrics and future prospects. Unlock these valuable tips with a subscription to InvestingPro, and don’t forget to use the coupon code PRONEWS24 to get up to 10% off a yearly Pro and a yearly or biyearly Pro+ subscription.

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