8 Best Beverage Dividend Stocks To Buy According to Hedge Funds

6. The Kraft Heinz Company (NASDAQ:KHC)

Number of Hedge Fund Holders: 38

The Kraft Heinz Company (NASDAQ:KHC) is an American food company, based in Illinois. The company specializes in a wide range of snacks and beverages. It struggled to attract investor interest following the merger of Kraft and Heinz nine years ago. In 2019, it unsettled shareholders by announcing a $15 billion writedown on its leading brands, a reduction in dividends, and an SEC investigation into its accounting practices. Shortly after these revelations, then-CEO Bernardo Hees resigned from his position. However, the company managed to resolve its challenges under new leadership and achieved stability in its topline growth. The stock is up by a modest 4% in the past five years.

In the third quarter of 2024, The Kraft Heinz Company (NASDAQ:KHC) reported revenue of $6.38 billion, which fell by 2.85% from the same period last year. The gross profit margin rose by 20 basis points, reaching 34.2%. The company remains committed to investing in marketing, research and development, and technology to deliver solutions that create value for consumers and drive future topline growth. These efforts are supported by its established ability to unlock efficiencies and generate robust cash flow consistently. In addition, the company is committed to expanding its renowned and emerging food and beverage brands worldwide.

The Kraft Heinz Company (NASDAQ:KHC) reported a strong cash position in the most recent quarter. The company’s operating cash flow year-to-date came in at $2.8 billion, up 6.7% from the same period last year. Its free cash flow amounted to $2 billion, which showed a 9.7% growth on a YoY basis. Moreover, the company also paid $1.5 billion to shareholders through dividends in the first nine months of the year. The Kraft Heinz Company (NASDAQ:KHC) currently offers a quarterly dividend of $0.40 per share for an impressive dividend yield of 5.03%, as of November 24.

As of the close of Q3 2024, 38 hedge funds in Insider Monkey’s database owned stakes in The Kraft Heinz Company (NASDAQ:KHC), compared with 43 in the previous quarter. These stakes are worth over $12 billion in total. Warren Buffett’s Berkshire Hathaway was the company’s leading stakeholder, with stakes worth over $11.4 billion.