Kraft Heinz's (KHC) Role in the Food Dividend Market: What Investors Should Know

The Kraft Heinz Company (NASDAQ:KHC) is included among the 10 Best Food Stocks with Dividends.

As reported by The Wall Street Journal, The Kraft Heinz Company (NASDAQ:KHC) is considering spinning off a significant portion of its operations, potentially valued at around $20 billion. With the company’s total market capitalization currently near $34 billion, the move would represent a major restructuring. While specifics haven’t been confirmed, reports suggest the split may involve creating one division centered on spreads and sauces, while the other would include processed meats, cheeses, and other essential products.

The Kraft Heinz Company (NASDAQ:KHC) reported revenue of $6 billion in the first quarter of 2025, down 6% from the same period last year. The company was once known for steady dividend growth, but after its 2015 merger with Heinz, the company eventually cut its dividend due to underperforming acquisitions. Since early 2019, the dividend has remained at $0.40 per share. However, rising cash flows— growing from $2.46 billion in 2022 to $4.1 billion in 2024— have improved the dividend outlook. In Q1 2025, the company returned $477 million to shareholders through dividends.

The Kraft Heinz Company (NASDAQ:KHC) currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 5.58%, as of July 27.

While we acknowledge the potential of KHC as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

READ NEXT: READ NEXT: Top 10 Safest Dividend Stocks in the UK and 11 Dogs of the Dow Dividend Stocks to Buy Now

Disclosure: None.