Kraft Heinz (KHC 1.71%) is a powerhouse consumer staple. Its owns several iconic brands that produce consistent cash flows and dividends for shareholders.
Kraft Heinz (KHC) closed at $29.94 in the latest trading session, marking a +1.63% move from the prior day.
A well-known soda purveyor and dividend payer comprises one-tenth of Berkshire Hathaway's portfolio holdings.
Dividends can be a great way to book a return on your investment portfolio no matter what stock prices are doing. But with the S&P 500 (^GSPC -5.97%) yielding just 1.3%, many stocks simply don't yield enough to be viable sources of passive income or supplement income in retirement.
I've been following the Kraft Heinz (KHC 0.56%) story since 2013, when Warren Buffett teamed up with 3G Capital to take H.J. Heinz private.
Kraft Heinz (KHC) closed the most recent trading day at $30.24, moving +0.57% from the previous trading session.
Kraft Heinz's valuation has become attractive with a high dividend yield of 5.5%, despite its flawed history and current macroeconomic challenges. The company has diversified its brand portfolio, making it resilient in various market environments, and offers qualified dividend income with favorable tax treatment. KHC's fundamentals have improved, with significant debt reduction and steady free cash flow, positioning it to navigate headwinds and capitalize on future growth.
The latest trading day saw Kraft Heinz (KHC) settling at $29.10, representing a -0.07% change from its previous close.
Kraft Heinz is a dependable dividend stock with a 5.4% yield, trading at an attractive valuation with a forward PE of 10.7. KHC shows operational strength through margin expansion, strong free cash flow, and accretive share buybacks. Management's focus on brand innovation and a healthier balance sheet positions KHC well for future growth, with potential for resumed dividend growth.
Kraft Heinz (KHC) reported earnings 30 days ago. What's next for the stock?
Fears of inflation are mounting again, especially with the prospects of steep tariffs on imports to the U.S. Consumer sentiment is plunging the furthest in years. Unemployment claims are rising.
Kraft Heinz's underperformance for years has scared away investors. Yet, shares offer outstanding 8.5% free cash flow and 5.5% dividend yields, making it an attractive investment. The company has significantly reduced its net debt from $31 billion in 2018 to $18.5 billion, while increasing operating cash flow, thus improving its financial stability profile. With Berkshire Hathaway's support and stable cash flows, Kraft Heinz stock is rated a Buy under $30, targeting a potential price double over five years.