Jim Trippon CPA

Tony the Tiger of Frosted Flakes fame likes to say his product is "Grrrrrrreat!" For investors, the latest dividend news from the maker of Frosted Flakes, Kellogg (NYSE: K) may be great.

The company said it plans to boost its quarterly dividend by 8% in the third quarter to 40.5 cents a share. The new dividend will be payable on June 15th to shareholders of record on June 1st.

Based on Friday's closing price, Kellogg would yield 3% when factoring in the new dividend and the company has rock-solid dividend history, having paid a dividend since 1925 and the most recently quarterly payout represented the 342nd dividend the company paid.

Kellogg's dividend growth is also note, coming in at about 50% over the past six years. The company also increased its dividend by more than 10% in the third quarter of 2009.

As have noted in the past, food stocks are a great avenues for income investors to find reliable dividend payers and consistently rising payouts. Kellogg is a prime example as the company's biggest rival, General Mills (NYSE: GIS).

For roughly the same yield as Kellogg, General Mills pays a bigger dividend in dollar terms and Big G has sharply outperformed Kellogg over the past two years when it comes to capital appreciation.