KHC - Kraft Heinz: Mixed Outlook But Increasing Free Cash Flow
2024-02-19 01:35:28 ET
Summary
- Kraft Heinz has seen disappointing performance and a lack of dividend growth, making it difficult to recommend for investors seeking consistent dividend income.
- The company has seen growth in its foodservice and emerging markets segments, but only modest growth in its GROW platforms segment.
- KHC has announced a share repurchase program and expressed optimism about its growth prospects for 2024, but the company's ability to meet its projected growth targets remains uncertain.
- The current dividend yield of 4.5% is well-covered, and if financials improve, a dividend raise could happen.
Overview
I always wanted to like Kraft Heinz as an investment, since I've personally purchased and consumed many of their food products throughout my life. I frequently view Warren Buffett's portfolio and see that he's been involved with Kraft since 2015. In addition, I know how Warren Buffett values dividends. It was always lost on me though how he's stuck with Kraft through all the poor price performance and lack of dividend growth. Unfortunately, I do not think Kraft is a good match for someone with my investing style; someone that values consistent revenue growth, dividend growth, and a reliable source of dividend income....
Kraft Heinz: Mixed Outlook But Increasing Free Cash Flow