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This is a very nice spinoff to leverage a solid, domestic business and its newly created global snack business for emerging markets, observes Charles Carlson of DRIP Investor.

Kraft Foods recently split into two companies—Kraft Foods Group (KRFT) and Mondelez International (MDLZ).

Kraft Foods Group represents the former company’s North American grocery business and has such brands as Velveeta, Oscar Mayer, and Miracle Whip. Mondelez houses the former Kraft’s global snack-food business, with such brands as Oreo, Cadbury, and Nabisco.

Both Kraft Foods Group and Mondelez have initiated direct-purchase plans whereby any investor may buy the first share and every share directly from the company. The terms of the plans are the same for both companies:

• Minimum initial investment is $500.
• Subsequent investments are a minimum $50.
• There is a one-time enrollment fee of $10.
• Purchase fees are $3 (80 cents if made with automatic monthly investment via electronic debit of a bank
• account) plus 3 cents per share.
• Dividend reinvestment fees are 4% of the amount reinvested (maximum $2) plus 3 cents per share.
• Selling fees are $15 for a batch sale ($25 for a market order) plus 10 cents per share.
• Plan administrator is Wells Fargo Shareowner Services.

For enrollment information for Mondelez, call (866) 655-7238. For Kraft Foods, call (855) 598-5493.

Of the two companies, Mondelez has the better growth prospects. However, Kraft Foods will sport a higher dividend yield—estimates are the stock will yield over 4% once the new dividend is determined.

I was not a big fan of the former Kraft, but I do believe the breakup should unlock shareholder value. Both stocks represent decent investments in the food sector.

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