Airline Gol Sinks to Record Low After Capital Increase Proposal
Gol Linhas Aereas Inteligentes SA 's stock slumped to a record low on Friday after the Brazilian airline proposed a 19.2 billion reais ($3.4 billion) capital increase in its latest attempt to exit Chapter 11.
The stock slumped 40% at the market open in Sao Paulo on Friday to trade at 0.71 reais, its lowest value since the company went public in 2004.
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This Top Warren Buffett Dividend Stock Is Trading at a 5-Year Low. Time to Buy?
Kraft Heinz's dividend is usually more attractive than it is right now, assuming it can continue to reward shareholders at the current level. The company is struggling with sales, and profits are modestly pressured. The stock isn't for everyone, but the business is far from falling apart. 10 stocks we like better than Kraft Heinz › As arguably the greatest investor of all time, Warren Buffett has made relatively few mistakes in his decades of investing. But Kraft Heinz (NASDAQ: KHC) was one of them. According to Buffett, Heinz overpaid for Kraft in 2015, which was a deal that Buffett's Berkshire Hathaway (NYSE: BRK.A)(NYSE: BRK.B) was involved with and mistakenly promoted. Kraft Heinz stock has lost two-thirds of its value over the last decade and now sits at five-year lows. However, Berkshire Hathaway continues to own about 27% of the company. This equates to about 3% of the value of Berkshire's stock portfolio, meaning it's still a top Buffett stock in spite of its poor performance. Buffett wishes he had paid a more attractive price for his stake in Kraft Heinz. But that's not the same as saying he wishes he had never invested in it. In other words, he doesn't necessarily regret owning a stake in the business, as evidenced by the fact that Berkshire continues to hold. The interesting thing here is that Warren Buffett loves dividend-paying stocks, and the dividend for Kraft Heinz looks particularly attractive today. This is measured with the dividend yield, a metric that refers to how much an investor is paid per the value of their investment. An average dividend yield is somewhere around 2%. In comparison, Kraft Heinz has a much higher dividend yield of about 6%. As the chart shows, Kraft Heinz usually has a high-yield dividend, but the payout is also currently elevated compared to its 10-year average. Investors who buy today could consequently be rewarded with good dividend income. And if the company raises its dividend in coming years, it would only get better. That said, when a dividend yield gets as high as Kraft Heinz's, it usually means that investors believe its dividend isn't safe. That's the question for investors today: Is Kraft Heinz's dividend safe, making its yield attractive today? Or is its currently attractive yield merely luring investors into a trap? Kraft Heinz owns a portfolio of well-known consumer brands, including eight billion-dollar brands such as Kraft Macaroni & Cheese, Heinz Tomato Ketchup, Velveeta, and Lunchables. Unfortunately, many of its brands have declining sales, particularly in key North American markets. This is the beginning of its problems. One might argue that Kraft Heinz is caught in the middle. Among brand names, social media influencers hold more sway than ever, and many are launching their own branded packaged-goods products that have an immediate fan base. And people who are more price-conscious are willing to trade down to cheaper unbranded products. With heightened competition in the branded space, sales for Kraft Heinz's products are challenged. So the company is trying to compete better on price. But this means that profits are falling by a larger amount. Take its latest quarter as an example. For the first quarter of 2025, Kraft Heinz's organic net sales fell by nearly 5% year over year. But its operating income fell by 8%. When thinking about the safety of the dividend, this is a problematic trend if it continues. Kraft Heinz is looking to make "strategic transactions," which could include selling off something in its portfolio or buying another business. That said, I think shareholders should tap the brakes before getting too excited. The company has incredibly large debt load of nearly $21 billion. This potentially limits how big a buyout it could pursue. Moreover, Kraft Heinz would need to sell a big, important brand to make a dent in its debt. But it would ideally keep the best brands for itself. 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Lucid Group (NasdaqGS:LCID) Welcomes Douglas Grimm To Board Of Directors
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High earners have credit card debt, too. Good luck getting them to admit it.
Credit card debt is an embarrassment to many Americans. It is especially embarrassing, apparently, to people who earn a lot. Roughly two-fifths of consumers with credit card debt have lied about the amount of their debt, according to a recent survey from LendingTree, an online lending marketplace. Among those with card debt who earn more than $100,000 a year, the share who lie about it rises to half. Experts say a credit card balance isn't like other debt when it comes to guilt and shame. A homeowner with a 4% mortgage interest rate might brag about it to the neighbors. A young adult might bemoan a student loan with a five-figure balance. Compared to those debts, however, credit card debt can feel like an emblem of incautious spending, poor planning or bad budgeting. 'A lot of people see credit card debt as a sign of failure, and maybe a sign of weakness, or lack of discipline,' said Matt Schulz, chief consumer finance analyst at LendingTree. LendingTree reports that the nation's collective credit card balance is $1.2 trillion as of early 2025. Roughly 46% of cardholders carried a balance for at least one month in the past year. For cardholders with debt, the average amount is $7,321. The average credit card interest rate is a whopping 21.4%. LendingTree surveyed 2,000 consumers in March and asked about their credit card habits. Among the findings: 39% of those with card debt said they had lied about it, most often to a partner, parent or sibling. Six-figure earners with card debt were more likely to lie about it than those earning less than $30,000, by a margin of 50% to 32%. 28% of consumers with card debt said they hadn't discussed it with anyone. Women were more likely than men to keep mum. Credit card debt might seem like a problem confined to lower-income Americans. However, LendingTree found that half of the six-figure earners have card debt, compared with 39% of those earning less than $30,000. 'People don't expect people who earn a lot of money to have a lot of credit card debt,' Schulz said. 'And the truth is that having a lot of money doesn't mean you're good at managing it.' If you are saddled with card debt, here are some expert tips for working your way out of it. If you're determined to pay down your card balance, get aggressive. The minimum payment, calculated by the card company, typically covers only the interest due and 1% of the balance, said Ted Rossman, senior industry analyst at Bankrate. To make a real dent, experts say, stop making new charges on the card. Then, bump up your payments. Consider a monthly sum equal to 5% of your gross income. Alternately, make double the minimum payment in the first month. Then, pay the same dollar amount in the following months, as the balance falls. If you have more than one credit card, experts say you should pick one and get serious about paying it off. Start with the card with the highest interest rate or the smallest balance. If you pick the card with the smallest balance, you can pay it off quickly and score a psychological victory. If you choose the card with the highest interest, you will pay less interest over time. While the average credit card interest rate now tops 20%, it's still possible to sign up for a card that accrues no interest at all for a period of 15, 18 or 21 months. Experts say that the zero-APR card can be a powerful tool for paying down debt because you pay no interest over the months of the promotion. Be careful, though: Once the promotion ends, the card company will charge interest on any remaining balance. Another way to pay off a card balance more quickly is to persuade the card company to lower your interest rate. Call the provider and ask if they would consider a rate reduction. If that doesn't work, consider contacting a nonprofit such as the Consumer Credit Counseling Service. Credit counselors can negotiate lower interest rates on your behalf. This article originally appeared on USA TODAY: Credit card debt shame is real, especially for those making over $100K
