Value Investing News

Ackman's presentation from the Boys and Girls Club today on Kraft.

Most of the companies which leave the dividend achievers or the dividend aristocrat indexes do so because of three reasons. Firtst, they might stop raising dividends because they needed cash for acquisitions. Another reason is that companies cut distributions because of poor economic conditions or need for cash in acquisition.

Article compares Kraft and Cadbury on business quality. Discusses margins, brands, etc.

Alice Schroeder shares her thoughts on Buffett's opposition to the current Kraft bid for Cadbury.

Warren Buffett was recently interviewed at Fortune’s Most Powerful Women Conference. During the interview he discusses Lehman Brothers, AIG, last year's economic crisis, the current state of the economy, and the Kraft offer for Cadbury.

Kraft Foods Inc., together with its subsidiaries, manufactures and markets packaged food products and grocery products worldwide. The company has consistently raised dividends since it went public in 2001. It was a part of tobacco conglomerate Altria Group (MO), until Kraft was spun off in May 2007.

By purchasing international stocks one essentially receives income in a different currency, which is a decent hedge against a possible devaluation of the US dollar. Another benefit of shopping for quality dividend stocks abroad is the huge potential for economic growth and development that both established and emerging economies posses.

I cannot predict what will happen to the value US Dollar and/or future growth from emerging markets. Dividend growth investors have many choices to position themselves which will blunt the effect of these issues. Invest in dividend growth companies that have notable presence in all markets. After that, the discussion of dollar demise becomes purely academic in nature.

It looks like I'm not the only one thinking about deflation. West Coast Asset Management writes about the impacts of deflation and the potential for hyperinflation in our current economic situation.