Kellog Company Stock

In accordance with the Kellogcompany.com website (2016)

On the 21st of October, 2016, the Directors Board has proclaimed a dividend of $0.52 per one share on the company stock. This altaration became applicable to all the share-owners of the Kellog company as of the 1st December, 2016 business close. So, Kellogg was effected in a negative way by its stock cost. This situation has made this company unable to submit the payment to its shareholders’ dividends. The event takes place because the stock cost has declined and money was transferred into other company’s business operations that consist of the development of the product and product innovations to counter the intensive competition within the market environment.

The stock price is a problem for Kellogg

because the company is operating in a market environment, where the forces of demand and supply are very high. As such, these forces tend to determine the stock price of the company, which in turn dictates the amount of dividends that are provided to shareholders of the firm.

Moreover, the announcement of dividends by the company signals the movement of the share price. These tend to increase over time and they are less than what is expected in the market environment. Further, this company is operating in a market environment where the market players are extremely focused on reaping all the benefits from the market. As such, their securities tend to compete with what Kellogg is offering, which depicts that the company has to have a fluctuating stock price. Moreover, Kellogg stock price has to fluctuate in relation to the existing trade cycle, influence of the existing political factors in the business environment, speculation, government stability, industrial relations, and sentiments of the market, institutional investors’ actions, and the level of foreign investment. This is in accordance with what was learned in the coursework.

References

Kelloggcompany.com. (2016). Kellogg’s. Retrieved from:

http://investor.kelloggs.com/dividends#chart