Putnam Master Intermediate Income Trust (PIM) was mainly bought for its monthly dividend income, but nowadays i’m more into dividend growth investments. Therefore I decided to swap my stake in PIM for a real company : Kraft Foods Group Inc (KRFT).
26 shares of KRFT were bought for $1477,26 including transaction fees, so the cost per share equals $ 56,82. KRFT has some solid numbers:
- PE: 14
- EPS : $4
- Pay out ratio : 52%
The current dividend of Kraft is $ 0.525 per quarter so the YOC (Yield On Cost) is 3,70% for me which is a fine entry point.
In 2014 we can expect one dividend payment which will add a net of $11,60 to the dividend machine.