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Globe and Mail
2 days ago
- Business
- Globe and Mail
This Top Warren Buffett Dividend Stock Is Trading at a 5-Year Low. Time to Buy?
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. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Continue » 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%. KHC Dividend Yield data by YCharts. 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? What's going wrong for Kraft Heinz 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. The (modest) upside for Kraft Heinz 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. Apart from strategic transactions, I believe that Kraft Heinz's shareholders should hope for stability. The business likely won't grow much -- people only eat so much food. But maintaining would still be good, because it usually has a stellar operating margin of around 20%. KHC Operating Margin (TTM) data by YCharts. Kraft Heinz can further improve its business by reducing some operating expenses. Management believes it can reduce costs by about $1 billion between now and the end of 2027, which would be helpful in sustaining the dividend. For investors looking for top-line growth or even dividend growth, Kraft Heinz stock might not be the best option right now. Moreover, some trends in the business are negative and could affect the dividend if they continue, which is something to keep in mind. That said, my outlook for Kraft Heinz is much more hopeful. Sales have only dropped modestly, and the business is still strong, as evidenced by its profit margins. Therefore, I'm inclined to say that the dividend is safe and could be attractive for investors who are purely looking for income. Should you invest $1,000 in Kraft Heinz right now? Before you buy stock in Kraft Heinz, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Kraft Heinz wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor 's total average return is792% — a market-crushing outperformance compared to171%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of June 2, 2025
Yahoo
2 days ago
- Business
- Yahoo
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. Apart from strategic transactions, I believe that Kraft Heinz's shareholders should hope for stability. The business likely won't grow much -- people only eat so much food. But maintaining would still be good, because it usually has a stellar operating margin of around 20%. Kraft Heinz can further improve its business by reducing some operating expenses. Management believes it can reduce costs by about $1 billion between now and the end of 2027, which would be helpful in sustaining the dividend. For investors looking for top-line growth or even dividend growth, Kraft Heinz stock might not be the best option right now. Moreover, some trends in the business are negative and could affect the dividend if they continue, which is something to keep in mind. That said, my outlook for Kraft Heinz is much more hopeful. Sales have only dropped modestly, and the business is still strong, as evidenced by its profit margins. Therefore, I'm inclined to say that the dividend is safe and could be attractive for investors who are purely looking for income. Before you buy stock in Kraft Heinz, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Kraft Heinz wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $669,517!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $868,615!* Now, it's worth noting Stock Advisor's total average return is 792% — a market-crushing outperformance compared to 171% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 2, 2025 Jon Quast has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Kraft Heinz. The Motley Fool has a disclosure policy. This Top Warren Buffett Dividend Stock Is Trading at a 5-Year Low. Time to Buy? was originally published by The Motley Fool
Yahoo
4 days ago
- Business
- Yahoo
Kraft Heinz (KHC) Stock Moves -0.26%: What You Should Know
Kraft Heinz (KHC) ended the recent trading session at $26.63, demonstrating a -0.26% swing from the preceding day's closing price. This change was narrower than the S&P 500's daily loss of 0.53%. Meanwhile, the Dow experienced a drop of 0.26%, and the technology-dominated Nasdaq saw a decrease of 0.83%. The processed food company with dual headquarters in Pittsburgh and Chicago's stock has dropped by 5.42% in the past month, falling short of the Consumer Staples sector's gain of 1.44% and the S&P 500's gain of 5.17%. The investment community will be paying close attention to the earnings performance of Kraft Heinz in its upcoming release. In that report, analysts expect Kraft Heinz to post earnings of $0.64 per share. This would mark a year-over-year decline of 17.95%. Alongside, our most recent consensus estimate is anticipating revenue of $6.26 billion, indicating a 3.34% downward movement from the same quarter last year. For the annual period, the Zacks Consensus Estimates anticipate earnings of $2.57 per share and a revenue of $24.97 billion, signifying shifts of -16.01% and -3.38%, respectively, from the last year. Investors should also pay attention to any latest changes in analyst estimates for Kraft Heinz. These recent revisions tend to reflect the evolving nature of short-term business trends. As such, positive estimate revisions reflect analyst optimism about the company's business and profitability. Based on our research, we believe these estimate revisions are directly related to near-team stock moves. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model. The Zacks Rank system, running from #1 (Strong Buy) to #5 (Strong Sell), holds an admirable track record of superior performance, independently audited, with #1 stocks contributing an average annual return of +25% since 1988. Over the past month, the Zacks Consensus EPS estimate has moved 0.04% higher. Kraft Heinz currently has a Zacks Rank of #4 (Sell). In terms of valuation, Kraft Heinz is presently being traded at a Forward P/E ratio of 10.38. This denotes a discount relative to the industry's average Forward P/E of 15.84. Meanwhile, KHC's PEG ratio is currently 3.12. This metric is used similarly to the famous P/E ratio, but the PEG ratio also takes into account the stock's expected earnings growth rate. The Food - Miscellaneous industry had an average PEG ratio of 1.62 as trading concluded yesterday. The Food - Miscellaneous industry is part of the Consumer Staples sector. This group has a Zacks Industry Rank of 162, putting it in the bottom 35% of all 250+ industries. The Zacks Industry Rank assesses the vigor of our specific industry groups by computing the average Zacks Rank of the individual stocks incorporated in the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1. Make sure to utilize to follow all of these stock-moving metrics, and more, in the coming trading sessions. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Kraft Heinz Company (KHC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
CTV News
02-06-2025
- Health
- CTV News
Sexual assault victim awarded $270K in damages by B.C. court
A statue of Themis, Goddess of Justice, in the B.C. Supreme Court building in downtown Vancouver on June 26, 2024 (Zak Vescera / Investigative Journalism Foundation and CTV News) A twice-disbarred former B.C. lawyer convicted of sexually assaulting a client has been ordered to pay the victim $270,000 in damages, according to a decision in a civil suit. Marc Andre Scheirer – who 'denies the sexual assault took place' – was found liable for sexual battery after a trial last year, and the decision on damages was handed down Friday. Justice Elizabeth McDonald's noted that Scheirer was convicted of sexual assault in 2020, receiving a suspended sentence and two years of probation. A 2022 appeal of the conviction was unsuccessful. Given this, the judge found there was 'no doubt' Scheirer was liable for the sexual assault and that the victim should be awarded damages. 'When I consider the evidence as a whole, I am satisfied that on balance, the defendant's sexual assault caused the plaintiff injury and loss, including psychological injuries,' the judge wrote. 'I find that this injury has caused the plaintiff to experience loss of enjoyment of life, lack of confidence, anxiety and fear while interacting with men.' The assault and its impact The victim, identified in the decision as K.H.C., went to an intake appointment with Scheier at his Abbotsford office in 2018, seeking advice on varying the no-contact condition of her husband's bail so he could move back into the family home. The judge in the civil case reiterated the 'substance' of the sexual assault charge, quoting from the B.C. Court of Appeal decision. 'The appellant then came around from behind his desk to where she was sitting, moving his chair beside hers on her left. He moved closer and put his head on her chest and his right hand behind her back. When K.H.C. asked what he was doing, he put his left hand on her leg and started rubbing it and moving it up towards her crotch,' the appeal decision said. 'When she pushed him away and went to stand up, he pushed her down and said, 'Nicer you are to me now, the sooner we get your husband home.'' Read more: K.H.C. testified at the civil trial, detailing the immediate and longer-lasting impact of the sexual assault. 'During her meeting with the defendant at his office, she immediately knew something was 'off' with the defendant, but she just kept asking herself how far it would go and how she could get out of there,' according to the decision. 'She recalled thinking about whether the defendant would 'rape' or hurt her. The plaintiff said she decided to trust someone and it backfired on her because the defendant violated her trust in the worst way.' Immediately after leaving the office, K.H.C said she was in shock and in tears, and that she reported the sexual assault that day after confiding in a friend. She also described the ensuing criminal process, which played out over the course of several years, as retraumatizing. 'When she was required to speak with the police or prepare for the trial, her nightmares about the sexual assault would return,' the judge wrote. The sexual assault impacted K.H.C's relationship with her husband, eroding intimacy and causing her to 'cringe' when he tried to touch her, the decision said. In addition, K.H.C told the court she became more fearful of male co-workers, her male physician and men in social situations. An expert report submitted to the court described the psychological impact including, 'a period of intense nightmares which resurface when the plaintiff is reminded of the sexual assault, persistent discomfort around men, diminished confidence and persistent heightened startle response.' Damages awarded McDonald awarded K.H.C. $200,000 in general damages as compensation for loss and injury, inclusive of $50,000 to account for the 'aggravating features' in the case. 'Those aggravating features include that the sexual assault happened while the plaintiff was attending the defendant's office to obtain his legal advice and the defendant has expressed no remorse despite his conviction for the offence,' the judge wrote. K.H.C was also awarded $50,000 in punitive damages. 'The defendant engaged in highly reprehensible conduct relating to or arising from the sexual battery and I find that the general damages award described above, even with the aggravated component, is insufficient to accomplish the goals of retribution, deterrence and denunciation,' McDonald's decision said. The court also awarded $20,000 for future counselling and psychological treatment. The judge's decision also noted that Scheirer did not dispute the amount. 'He stated the plaintiff would not receive a dollar and that he had no alternate amounts to suggest,' the judge wrote. 'He said another $270,000 award would not make any difference to him since he would just declare bankruptcy again.'
Globe and Mail
21-05-2025
- Business
- Globe and Mail
2 Warren Buffett Stocks I Wouldn't Buy
Warren Buffett is a brilliant investor and, arguably, the most popular one in the world. His company Berkshire Hathaway invests in many blue chip stocks, but investors shouldn't assume that all of Berkshire's holdings are great buys. A closer look reveals that there are some considerable concerns with some of them. There are a couple of stocks in Buffett's portfolio that I wouldn't buy now or anytime soon -- Kraft Heinz (NASDAQ: KHC) and Constellation Brands (NYSE: STZ). While they may provide some dividend income, you may be better off steering clear of them. Where to invest $1,000 right now? Our analyst team just revealed what they believe are the 10 best stocks to buy right now. Learn More » Kraft Heinz Kraft has some solid consumer brands in its portfolio, including Oscar Mayer, Jell-O, Philadelphia, and many others. However, the business has been struggling to grow. While there have been periods of positive growth, the overall trajectory over the past five years hasn't been encouraging, as you can see from the chart below. KHC Operating Revenue (Quarterly Year-Over-Year Growth) data by YCharts. Last year, the food company's revenue totaled $25.8 billion -- less than the $26 billion it reported back in 2021. While there is some stability in the company's operations, growing sales has been challenging. And with a greater focus by the current government on healthier food options and GLP-1 drugs curbing appetites, things may not get any easier for Kraft. There are some big question marks about whether its products will remain in strong demand in the years to come. Kraft has lost more than 10% of its value over the past five years but could make for a compelling option for income investors, as it yields 5.8% -- a mouthwatering payout when you consider that the S&P 500 's yield is only 1.3%. However, if the company has an uncertain future ahead and its earnings deteriorate, the dividend may not be all that safe. I'm not sure why Kraft is still among Berkshire's top 10 holdings and the investment hasn't been eliminated or at least drastically reduced by now. But it's not a stock I'd be hanging on to, as Kraft's future is questionable. Constellation Brands One stock that Buffett has been recently bullish on is Constellation Brands. He started buying it last year and recently doubled his position in the beer maker. I can understand Buffett's logic a bit more on this one than with Kraft. Beer generally is always in demand, whether economic conditions are strong or not. Constellation has some popular brands, including Corona and Modelo, which help it fit into the Buffett mold of investing in businesses with strong competitive moats. However, tariffs are currently a big risk to the business these days, as Constellation makes its beers in Mexico. President Trump imposed a 25% tariff on imports from that country earlier this year. I don't think that's a huge consideration for Buffett as he doesn't make investment decisions based on economic outlooks and instead focuses on the long-term picture. But even that looks troubling when you consider the health risks involved with alcohol consumption. There are a growing number of reports that have found that alcohol raises the risk for developing multiple types of cancers, and that there may not be a safe amount to adjusted this as the focus wasn't to be on the surgeon general themselves but the health-related risks JM: I think this was the former surgeon general. Wonder if the new surgeon general has different views? For now, Constellation's business has been generating far better growth than Kraft. In its most recent fiscal year, which ended on Feb. 28, Constellation's net sales came in at $10.2 billion, which was a modest 2% improvement from the previous fiscal year. Over a three-year period, sales have risen by 16%. But that still isn't terribly impressive growth. And as with Kraft, my concern is that the future may lead to more challenges for Constellation to grow its top line, especially as consumer health concerns about alcohol may weigh on the demand for the company's products. Should you invest $1,000 in Constellation Brands right now? Before you buy stock in Constellation Brands, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Constellation Brands wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $642,582!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $829,879!* Now, it's worth noting Stock Advisor 's total average return is975% — a market-crushing outperformance compared to172%for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of May 19, 2025 David Jagielski has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Berkshire Hathaway. The Motley Fool recommends Constellation Brands and Kraft Heinz. The Motley Fool has a disclosure policy.
