Paging Jerry Seinfeld! Kellogg near all-time high

Your cereal is getting a (natural) facelift
Your cereal is getting a (natural) facelift

Kellogg's stock really is a Special K.

K is the cereal giant's ticker symbol. And despite the fact that Kellogg (K) just announced a recall of some of its popular snacks (including Keebler and Famous Amos cookies) after it found peanut residue in some of them, shares of Kellogg are still up more than 5% this year, and are near their all-time high.

What gives? Did well-known cereal fan Jerry Seinfeld decide to put his money where his mouth his and buy a big stake in the company? No. But there were some recent rumors that Coca-Cola (KO) might be interested in buying Kellogg.

The speculation didn't last long, but Kellogg's stock enjoyed a brief pop on the trader gossip.

A sale of Kellogg to Coke isn't that farfetched. After all, Coke's big rival Pepsi (PEP) owns Kellogg competitor Quaker Foods, which makes Life cereal.

Kellogg's name has also come up often as a possible takeover candidate for Warren Buffett. His Berkshire Hathaway (BRKA) conglomerate teamed up with private equity firm 3G a few years ago to buy ketchup king Heinz, which subsequently merged with Kraft. Berkshire Hathaway is now the biggest shareholder in Kraft Heinz (KHC), with a nearly 27% stake. So adding Kellogg to the mix could make some strategic sense.

But the main reason why Kellogg has probably done so well is that it's a predictable and safe stock in what's become a volatile global market.

Related: Happy National Cereal Day! Or is it Cereal Year?

Kellogg isn't going to ever report explosive sales and earnings growth. It's not Facebook (FB) or Google (GOOGL).

But it will likely be a dependable company regardless of what happens to economies around the world. Analysts expect a 5% increase in profits for Kellogg this year and a 7.5% increase in 2017.

And with interest rates for major government bonds being painfully low -- and in some cases negative -- companies like Kellogg are viewed as attractive alternatives for some conservative investors. Kellogg's stock pays a dividend that yields 2.6%.

Kellogg isn't the only cereal stock that's doing well either. In fact, it's been a breakfast laggard compared to General Mills (GIS) (up 13%) and Post (POST) (up 20%.)

So Wall Street isn't just following its nose to Kellogg's Fruit Loops. Investors are eating (and buying) their Wheaties and Grape-Nuts too.

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