Is It Finally Time to Buy This Dividend Stock Now That It Has a 6.6% Dividend Yield?

Core Viewpoint - Kraft Heinz's high dividend yield of 6.6% may attract dividend investors, but the stock has faced significant pressure, with shares down over 20% year to date and over 30% in the last five years due to declining sales trends [1] Group 1: Financial Performance - Kraft Heinz's free cash flow for the year to date is $2.5 billion, representing a 23.3% increase year over year, which comfortably covers the $1.4 billion in total dividend payments [4][5] - Despite a 2.3% year-over-year decline in sales, the company's ability to generate substantial cash flow is noteworthy, indicating it remains a strong cash-generating entity [6] Group 2: Valuation - The stock is currently trading at a low valuation of eight times trailing-12-month free cash flow, suggesting that investors have minimal growth expectations for the company [7][8] Group 3: Shareholder Returns - In addition to dividends, Kraft Heinz is actively returning cash to shareholders through share repurchases, having repurchased $988 million in 2024 and an additional $435 million in the first nine months of 2025, with $1.5 billion remaining under its repurchase authorization [9]