Is Kellogg Stock a Buy?
If you invested $10,000 in Kellogg (NYSE: K) 10 years ago, you'd have around $13,000 today. If you reinvested dividends along the way, you'd have closer to $18,000. But these returns lag the $30,000 you'd have had by simply investing in an S&P 500 index fund.
Despite this track record, investors may be tempted to think Kellogg stock can beat the market. Its products are in demand, its valuation looks low, and its dividend yield is above average. Yet each of these positive points has a valid counterpoint. In short, I'm doubtful Kellogg stock can beat the market.
But are there valid reasons to buy Kellogg stock anyway? Indeed there are, and indeed I did. First, however, let's look at the three points mentioned above.
Source Fool.com
