Daily Stock Analysis: Kraft Heinz Corp

The portfolio of stocks I started building on September 8, at a one stock per week pace for the next year, is named Vista. I will select its eighteenth stock this weekend. Vista is the sixth portfolio I've built (at a one dividend dog per-week pace) since 2014. Six portfolios = VI for Vista!

Vista is planned to Look Ahead for Outstanding, Proven, Dividend Winners. (Like Aristocrats)

Today we look at a large-cap packaged foods company named Kraft Heinz Corp. Its trading ticker symbol is KHC. This is my first report on Kraft Heinz Corp for Vista. 

In July 2015, Kraft merged with Heinz to create the third-largest food and beverage manufacturer in North America behind PepsiCo and Nestle and the fifth-largest player in the world. 

Heinz Tomato ketchup bottle

Source: Unsplash

Beyond its namesake brands, the combined firm's portfolio includes Oscar Mayer, Planters, Ore-Ida, and Philadelphia. Outside North America, the firm's global reach includes a distribution network in Europe and emerging markets that drive around one-fifth of its consolidated sales base, as its products are sold in more than 190 countries and territories around the world.

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 headquartered in Pittsburgh, Pennsylvania.

I use three key data points to gauge dividend equities or funds like Kraft Heinz Corp:

(1) Price

(2) Dividends

(3) Returns

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

KHC Price

KHC's price per share closed at $33.62 Friday. A year ago its price was $30.70. Price rose 9.5% on the year.

If KHC stock trades in the range of $20 to $40 this next year, its recent $33.62 price might rise by $2.38 to reach $36.00 by January 11, 2022. 

KHC Dividends

Kraft Heinz's most recently declared quarterly dividend was $0.40 paid December 18th. Dividends are estimated to total $1.60 per share annually and yield 4.76% at Friday's $33.62 closing price.

KHC Gains?

Adding the $1.60 annual Kraft Heinz anticipated dividend to my $2.38 optimistic price upside shows a $3.98 potential gross gain, per share, to be reduced by any costs to trade the shares.  

Put little over $1,000.00 today in Kraft Heinz Corp at $33.62 per share and we'd buy 30 shares of KHC stock.

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

Subtract that maybe $0.33 brokerage cost from my estimated  $3.98 gross gain per share results in a net gain of $3.65 X 30 shares = $109.50 for a 10.9% net gain on a $1,008.60 investment.

So it goes that Kraft Heinz Corp shows a possible  10.9% net gain including a 4.76% dividend yield. It could be more, it could be less.  

All of the estimates above are speculation based on the past history of Kraft Heinz Corp. Only time and money invested in this stock will determine its worth.

Disclaimer: This article is for informational and educational purposes only and should not be construed to constitute investment advice. Nothing contained herein shall constitute a solicitation, ...

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