The following video is part of our "Motley Fool Conversations" series, in which consumer goods editor/analyst Austin Smith discusses topics across the investing world.

In today's edition, Austin gives investors three reasons to considering buying shares of Kraft today. He cites its upcoming spin-off, which many analysts believe will unlock value; potential efficiencies gained from restructuring; and its shareholder-friendly dividend as just three bullish catalysts. With a 3% dividend yield, Kraft certainly qualifies as market-topping, but the company still trails some of its peers in the packaged food space. Fortunately for the patient investor, once Kraft is split into two companies, its domestic grocery division is likely to be a dividend powerhouse. Management has indicated that a generous dividend will be a priority for the division and will likely rise to meet (if not match) other packaged good companies in the space.

As good as its 3% yield is, the fact that it could have been better kept Kraft off our list of nine incredible dividends. You can learn about the companies that made the cut -- just click here to read our special free report.

At the time this article was published Austin Smith owns shares of Philip Morris International. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Philip Morris International. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

Copyright © 1995 - 2012 The Motley Fool, LLC. All rights reserved. The Motley Fool has a disclosure policy.

Increase your money and finance knowledge from home

Investor’s Toolbox

Improve your investing savvy with the right financial toolset.

View Course »

Asset Allocation

Learn the most important step in structuring an investment portfolio.

View Course »

Add a Comment

*0 / 3000 Character Maximum


Filter by:

Exactly! I read his "3 reasons to Sell Kraft" yesterday. Is someone trying to manipulate the market? WHy shold anyone listen to these so called "analysts"?

May 23 2012 at 11:28 PM Report abuse rate up rate down Reply

Yesterday you had just the opposite clip on why one should Sell Kraft. You apparently can not make up your mind. What kind of advice are you giving.?

May 23 2012 at 3:05 PM Report abuse rate up rate down Reply