Dividends For The New Investor

It doesn't matter if you're new to investing or have been doing it for a lifetime -- it's important you understand a company's business model. And frankly, the simpler the business model, the better. In that spirit, today we're going to look at two companies with great dividends and easy-to-understand business models. They've all been around for a while and look like they're here to stay. Because what good is a great dividend if the company's not going to be here to pay it out? Without further ado, then:

Kellogg (NYSE: K )
Yes, that's Kellogg's, the cereal company from your -- and everyone else's -- childhood. It's the renowned maker of such breakfast favorites as Corn Flakes, Frosted Flakes, Raisin Bran, and Special K. Beyond cereal, the company makes Pop Tarts, Eggo waffles, and Nutri-Grain bars. This is clearly a company that has touched most consumers' lives at one time or another, and, after more than 100 years, is still going strong. Mattel (Nasdaq: MAT )
Hot Wheels, Matchbox, Ken and Barbie, Fisher-Price, Tyco, Uno. Minus Ken and Barbie, Mattel's products are a walk through my childhood. In addition to these classic brands, Mattel is also responsible for two of the hottest new toy collections: Monster High and American Girl. This is another beautifully simple business model.

Source: Motley Fool

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