CHP 2 - KELLOGG DIVIDENDS MAY1996 MAY2006 Dividend growth...

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KELLOGG DIVIDENDS, MAY1996 - MAY2006 Dividend growth rate, quarterly last 5 years 0.47% last 10 years 0.70% Dividend growth rate, annualize last 5 years 1.90% last 10 years 2.84% Ex-Dividend Date 30-May-06 $0.28 27-Feb-06 $0.28 29-Nov-05 $0.28 30-Aug-05 $0.28 27-May-05 $0.25 25-Feb-05 $0.25 23-Nov-04 $0.25 27-Aug-04 $0.25 27-May-04 $0.25 2-Mar-04 $0.25 25-Nov-03 $0.25 27-Aug-03 $0.25 28-May-03 $0.25 27-Feb-03 $0.25 26-Nov-02 $0.25 28-Aug-02 $0.25 29-May-02 $0.25 28-Feb-02 $0.25 28-Nov-01 $0.25 29-Aug-01 $0.25 29-May-01 $0.25 26-Feb-01 $0.25 28-Nov-00 $0.25 29-Aug-00 $0.25 26-May-00 $0.25 25-Feb-00 $0.25 26-Nov-99 $0.25 27-Aug-99 $0.25 26-May-99 $0.24 25-Feb-99 $0.24 24-Nov-98 $0.24 26-Aug-98 $0.24 27-May-98 $0.23 26-Feb-98 $0.23 25-Nov-97 $0.23 Dividend Amount
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27-Aug-97 $0.23 28-May-97 $0.21 26-Feb-97 $0.21 26-Nov-96 $0.21 28-Aug-96 $0.21 29-May-96 $0.20
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THE GORDON MODEL COST OF EQUITY Current share price, P0 60 Current dividend, D0 3 Anticipated dividend growth rate 12% Gordon model cost of equity, rE 17.600%
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Kellogg stock price, P0, 30 May 2006 48.25 Current dividend Quarterly 0.278 Annualized dividend, Divo 1.112 Dividend growth rate, g Last 5 years 1.90% Last 10 years 2.84% Gordon model cost of equity rE Using last 5 years' growth 4.25% Using last 10 years' growth 5.22% COMPUTING KELLOGG'S rE WITH THE GORDON MODEL
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