Core Viewpoint - Following the Federal Reserve's 50-basis-point rate cut, markets have reached new all-time highs, prompting investors to consider rebalancing their portfolios towards dividend-paying stocks, particularly Kraft Heinz and AT&T, which offer high yields and potential upside [1]. Group 1: Kraft Heinz - Kraft Heinz has a dividend yield of 4.52% with an annual payout of $1.60, making it attractive for income-seeking investors despite a year-to-date decline of 4% [1][2]. - The stock's technical indicators show signs of recovery, having reclaimed its 20- and 50-day simple moving averages and nearing the critical 200-day SMA, which could signal a bullish trend if surpassed [1]. - Kraft Heinz has a forward price-to-earnings (P/E) ratio of 11.19, with six out of eleven analysts rating it as a Buy, projecting a potential upside of 6.18% [2]. - Upcoming earnings on October 30 are crucial, as the company previously reported earnings per share of $0.78, beating estimates by $0.05 [3]. - Warren Buffett's Berkshire Hathaway holds a 26.9% stake in Kraft Heinz, indicating long-term confidence, and the company is focusing on innovation with new product introductions [4]. Group 2: AT&T - AT&T offers a high dividend yield of 5.22% with an annual dividend of $1.11, and the next payment is scheduled for November 1 [5][6]. - The stock has increased nearly 27% year-to-date, outperforming the S&P 500, but recently pulled back about 5% from its 52-week highs, presenting a potential buying opportunity [5]. - Analysts have assigned a Moderate Buy rating to AT&T, with a nearly 7% forecasted upside, and Wells Fargo raised its price target from $22 to $25, implying a 17% potential upside [6]. - The company is set to release its next earnings report on October 23, having met expectations with earnings of $0.57 per share on $29.8 billion in revenue in the last quarter [7]. - AT&T's strong dividend and financial performance make it an attractive defensive play in a declining rate environment, providing both stability and growth potential [8]. Group 3: Portfolio Strategy - Both Kraft Heinz and AT&T present compelling opportunities for investors looking to diversify into high-yield stocks as interest rates decline, with Kraft Heinz showing value play potential and AT&T demonstrating solid momentum [9].

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Company Summaries Walgreens Boots Alliance, Inc. (WBA) - Dividend Yield: 11.49% - UBS analyst Kevin Caliendo maintained a Neutral rating and reduced the price target from $17 to $12 [3] - RBC Capital analyst Ben Hendrix maintained a Sector Perform rating and cut the price target from $22 to $13 [3] - Recent News: On Sept. 13, WBA agreed to pay $106.8 million to settle allegations of submitting false claims to government healthcare programs [3] The Kraft Heinz Company (KHC) - Dividend Yield: 4.66% - Wells Fargo analyst Chris Carey maintained an Equal-Weight rating and raised the price target from $34 to $35 [4] - B of A Securities analyst Bryan Spillane maintained a Buy rating and lowered the price target from $42 to $38 [4] - Recent News: On July 31, KHC reported better-than-expected second-quarter adjusted EPS results [4] Philip Morris International Inc. (PM) - Dividend Yield: 4.52% - Goldman Sachs analyst Bonnie Herzog maintained a Buy rating and increased the price target from $126 to $140 [5] - Barclays analyst Gaurav Jain maintained an Overweight rating and raised the price target from $130 to $145 [5] - Recent News: PM is expected to report results for its fiscal third quarter on Oct. 22 [5]

The Kraft Heinz Company (KHC) is demonstrating resilience in a tough economic landscape thanks to its effective pricing strategies. In second-quarter 2024, KHC reported an adjusted gross profit of $2,296 million, up 2.5% year over year. The upside highlights the company's ability to maintain robust profit margins, even as inflationary pressures persist. With its adjusted gross margin expanding 210 basis points (bps) to 35.5%, the company is proving that it can navigate a challenging consumer environment whi ...

The Kraft Heinz Company (KHC) successfully implemented pricing strategies that have strengthened its performance and helped maintain robust profit margins despite ongoing inflationary pressures. The company continues to excel in its three key segments — Foodservice, Emerging Markets and U.S. Retail Grow platforms — despite challenges in the consumer environment. KHC is actively working on transforming its business to unlock its full potential and boost shareholder value. Let's delve deeper. Positive Perform ...

I t n t 115 1000 I I TE JHVEPhoto In the summer of last year, I believed that inflation was aiding Kraft Heinz (NASDAQ:KHC) with their reported revenues, yet negative volume trends were concerning. Amidst these trends, the outlook for 2023 was uncertain, yet the elevated pace of divestments was a thing of the past, with leverage rapidly under control. While the company returned to growth, this was entirely driven by pricing and inflation, with underlying volume trends being concerning. Over the past year, K ...

Kraft Heinz (KHC) closed the latest trading day at $35.20, indicating a +0.11% change from the previous session's end. The stock trailed the S&P 500, which registered a daily gain of 0.75%. Elsewhere, the Dow saw an upswing of 0.58%, while the tech-heavy Nasdaq appreciated by 1%. The processed food company with dual headquarters in Pittsburgh and Chicago's stock has climbed by 1.94% in the past month, falling short of the Consumer Staples sector's gain of 3.54% and the S&P 500's gain of 4.03%. Investors wil ...

Industry/Company Involved * **Company**: The Kraft Heinz Company (NASDAQ: KHC) * **Industry**: Packaged Food Core Points and Arguments 1. **CEO Carlos Abrams-Rivera's Perspective on the Current Operating Environment**: * Similar to past cycles, such as the 2008 recession, but not as bad. * Focus on providing great food solutions for a growing global population. * Emphasis on the company's strategy of "accelerate, protect, and balance" to thrive in the current environment. * Commitment to investing in marketing, technology, and SG&A despite consumer challenges. * [1][2][3][4][5][6][7] 2. **CFO Andre Maciel's Overview of Kraft Heinz's Transformation**: * Strategic clarity and focus on organic growth. * Robust operating model with improved efficiency and productivity. * Strong balance sheet with upgraded credit rating and excess cash. * Meritocracy and employee engagement at all-time highs. * [8][9][10][11][12][13][14][15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 3. **U.S. Retail Strategy**: * Focus on value-conscious consumers with 30-40% of the portfolio requiring promotions. * Thoughtful and surgical deployment of promotions to drive growth without sacrificing margins. * Continued investment in marketing, innovation, and renovation to engage consumers. * Expansion of distribution in value-oriented channels like Dollar General and club stores. * [15][16][17][18][19][20][21][22][23][24][25][26][27][28][29][30][31][32][33][34][35][36][37][38][39][40][41][42][43][44][45][46][47][48][49][50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 4. **Global Strategy**: * Focus on emerging markets with significant growth potential. * Selective approach to market entry and expansion. * Strong performance in key emerging markets like Brazil, Mexico, and Indonesia. * Challenges in China due to softer consumer and industry conditions. * [50][51][52][53][54][55][56][57][58][59][60][61][62][63][64][65] 5. **Portfolio Strategy**: * Active portfolio management with divestitures and acquisitions. * Focus on taste elevation, ready meals, substantial snacking, and coffee, meat, and cheese categories. * Potential for further portfolio optimization through M&A and partnerships. * [54][55][56][57][58][59][60][61][62][63][64][65] 6. **Key Message to Investors**: * Significant transformation over the past few years. * Clear strategy, strong balance sheet, and high employee engagement. * Undervalued stock due to the transformation and market perception. * [60][61][62][63][64][65]

The Kraft Heinz Company (NASDAQ:KHC) Barclays 17th Annual Global Consumer Staples Conference September 5, 2024 11:15 AM ET Company Participants Carlos Abrams-Rivera - CEO Andre Maciel - EVP and Global CFO Conference Call Participants Andrew Lazar - Barclays Andrew Lazar Great. Thanks, everybody. Welcome back for a fireside chat with Kraft Heinz. I'm thrilled to welcome Kraft Heinz back to our conference. And with me this morning are CEO, Carlos Abrams-Rivera; and CFO, Andre Maciel. Welcome. Carlos Abrams-Ri ...

The blue-chip consumer staples giant looks like an appealing investment again. Kraft Heinz (KHC 1.10%) has been a disappointing investment ever since it was created from the merger between Kraft and Heinz nine years ago. The combined company's shares opened at $48.55 on July 6, 2015, but they now trade just below $36. Kraft Heinz was initially considered a stable blue chip consumer staples stock, but it rattled its investors in 2019 with a $15 billion writedown on its top brands, a dividend cut, and the dis ...

2020 2021 2022 2023 2024 WendellandCarolyn/iStock Editorial via Getty Images Digest Some Profit Our group was investing in food and beverage companies in 2017. We mistakenly thought The Kraft Heinz Company (NASDAQ:KHC) stock was a good by. It was selling then for $86.67 per share. The company unraveled but recently got traction with other consumer staples stocks, We think the stock is a Sell opportunity after its pop in price last week. Seeking Alpha's Quant Rating is Hold, and has been for most of the past ...