Kellogg's Dividend Increase: Investors Should Not Be Impressed

Kellogg Company (K) announced a 6.5% increase in its quarterly dividends, to $0.49 per-share yesterday, bringing the company's dividend yield to 3% at the current price levels. The 6.5% growth rate is higher than the 4.3% and 6.2% annual growth, in cash payouts from the company, over the last three and five years. However, we advise investors to not be impressed by this increase.