There is some news around the consumer staples, which is a popular bread and butter sector for many dividend growth investors. It looks like the sector has some value, that could be unlocked by private buyers or spin-offs.
Last week, Ferrero Group announced that it will acquire WK Kellogg (KLG) for $23/share.
Back in 2023, Kellogg’s split into WK Kellogg (KLG) and Kellanova (K). Kellanova itself is in the process of being acquired by Mars Inc.
Today, Kraft Heinz is rumored to be planning to split off its grocery business, from its sauce and spreads business. In effect splitting into a Kraft and a Heinz. That could unlock some value, and potentially get someone else to bid up for those separate companies.
Looks like there is some value left in consumer staple brands after all.
This post originally appeared at Dividend Growth Investor.