13. The Kraft Heinz Company (NASDAQ:KHC)
Number of Billionaire Investors: 15
Dividend Yield as of March 3: 5.12%
The Kraft Heinz Company (NASDAQ:KHC) is an Illinois-based multinational food company. It has faced challenges in establishing a strong position in recent years, relying on cost-cutting measures to boost net income. While this strategy has yielded short-term gains—such as a nearly 21% increase in net income in 2023—earnings declined in 2024. However, sustained profit growth becomes difficult without meaningful revenue expansion. As a result, the company may not appear particularly attractive to investors at the moment. The stock has declined by nearly 11% in the past 12 months.
The Kraft Heinz Company (NASDAQ:KHC) delivered mixed results for Q4 2024, as weaker sales were offset by efforts to enhance profitability. It reported an adjusted EPS of $0.84, beating market expectations by $0.06, largely due to unexpected tax benefits and a lower share count. However, revenue for the quarter declined 5% year-over-year to $6.58 billion, missing the projected $6.66 billion, as organic sales continued to weaken. In the US, its primary market, net sales dropped 3.9% from the previous year, with price increases only partially making up for lower sales volumes.
Despite these challenges, The Kraft Heinz Company (NASDAQ:KHC) maintained a solid cash position in FY24, generating $3.2 billion in free cash flow, a 6% increase from the prior year. Operating cash flow also grew 5.2% year-over-year to $4.2 billion. In addition, the company returned $2.7 billion to shareholders through dividends and share buybacks, which makes it one of the best dividend stocks on our list. The company offers a quarterly dividend of $0.40 per share and has a dividend yield of 5.12%, as of March 3.
