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• In July 2015, Kraft merged with Heinz to create (KHC) the third-largest food and beverage manufacturer in North America behind PepsiCo and Nestle and the fifth-largest player in the world. 
• Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Velveeta, and Philadelphia. While the retail channel drives around 85% of its total sales, the firm operates a growing presence in the food service arena.
• Outside North America, Kraft Heinz's global reach counts a distribution network in Europe and emerging markets that drives 20%-25% of its consolidated sales base, as its products are sold in more than 190 countries and territories.

The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

Three key data points gauge Kraft Heinz Corp or any dividend-paying firm. The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.

KHC Price

Over the past year, Kraft Heinz’s share price rose about 2.5% from $32.95 to $33.77 as of Thursday’s market close. 

If Kraft Heinz’s stock trades in the range of $30.00 to $42.00 this next year, its recent $33.77 share price might rise to $37.50 by next year. Of course, KHC’s price could drop about the same $3.73 estimated amount or more.

My upside estimate of $3.73, however, is $3.90 under the median of the target price estimate from twenty analysts tracking the stock.

KHC Dividend

Kraft Heinz Co. has paid variable quarterly dividends since July 31, 2015. KHC's most recent Q dividend, payable September 29th to shareholders of record August 31st, is $0.40. Its estimated annual dividend payout of $1.60 is projected to yield 4.74% per Thursday’s closing price.

KHC Returns

Adding the $1.60 anticipated annual dividend to Kraft Heinz Co's estimated $3.73 possible price upside reveals a $5.33 potential gross gain per share for the coming year.

At Wednesday’s $33.77 closing price, a little over $1000 would buy 30 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.33 per share.

Subtracting that maybe $0.33 brokerage cost from my estimated $5.33 gross gain per share makes a net gain of $5.00 X 30 shares = $150.00 or about a 15% net gain.

This may be the time to pounce on Kraft Heinz Co. shares. But beware, KHC is a packaged foods manufacturing and distribution company doing business in a volatile environment. However, the recently estimated $47.40 dividend from $1000 invested comes in at about 1.4 times the recent $33 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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