Kraft Heinz Sees Cash Flow Surge Despite Stagnant Dividend

The Kraft Heinz Company (NASDAQ:KHC) is one of the Best Dividend Leaders to Buy Now.

The company was once a classic income stock known for regularly raising its dividend. When Kraft merged with Heinz in 2015, they formed one of the largest consumer goods companies, initially maintaining a strong dividend strategy.

Dividends rose during the first three years after the merger, but then The Kraft Heinz Company (NASDAQ:KHC)  drastically cut its dividend. Several high-profile brand acquisitions didn’t deliver the expected profits, leading the company to tighten its dividend policy to preserve cash.

Since early 2019, the quarterly dividend has remained fixed at $0.40 per share. That said, its cash flows are increasing, which provides a positive outlook for its dividends. The company’s operating cash flow has jumped from $2.46 billion in 2022 to $4.1 billion in 2024. Similarly, free cash flow grew from $1.5 billion in 2022 to $3.02 billion last year. Due to this cash flow, the company remained committed to its shareholder value, returning $477 million through dividends in the first quarter of 2025.

The Kraft Heinz Company (NASDAQ:KHC) pays a quarterly dividend of $0.40 per share and has a dividend yield of 6.17%, as of June 23.

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.

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