KHC - 6 Months Into 2024 and Kraft Heinz Stock Is Trailing the S&P 500 by 20 Percentage Points: Time to Buy?
2024-07-07 18:00:00 ET
The first half of 2024 was not kind to Kraft Heinz (NASDAQ: KHC) and its shareholders. The stock fell just shy of 13% compared to a 14.5% gain for the S&P 500 index and an over 6% advance for the average consumer staples stock, using the Consumer Staples Select Sector SPDR ETF as a proxy.
What's going on, and is this laggard performance actually an opportunity to add a high-yield stock like Kraft Heinz to your income portfolio?
Trailing the broader market and the consumer staples sector is not good news for Kraft Heinz. But contrarian investors looking for high-yield stocks will quickly notice that Kraft Heinz's yield is roughly 5%. That's far above the 1.3% or so yield of the S&P 500 and the 2.7% yield of the average consumer staples stock. The stock drop isn't a good sign, but that yield is looking pretty juicy. So what's been going on that investors are so downbeat on Kraft Heinz's shares?
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6 Months Into 2024 and Kraft Heinz Stock Is Trailing the S&P 500 by 20 Percentage Points: Time to Buy?