Warren Buffett Dividend Stocks by Sectors and Industries

7. The Kraft Heinz Company (NASDAQ:KHC)

Berkshire Hathaway’s Stake Value: $10,491,953,836

Sector: Consumer Staples

Industry: Packaged Foods

The Kraft Heinz Company (NASDAQ:KHC) is an Illinois-based food company that deals in a wide range of snacks and beverages. Buffett first invested in H.J. Heinz Co. in 2013, aiding 3G Capital in acquiring the company. He was also involved in facilitating the merger with Kraft in 2015. Despite this, Buffett has openly acknowledged to investors that the Kraft Heinz investment has not been among his best choices. He began to decrease his investment in the company after 2018 due to challenges facing the industry. Kraft Heinz attempted to boost growth through an acquisition bid for Unilever, but the offer was rejected by the owner of Popsicle. In 2019, the company faced a challenging quarter, during which the company significantly reduced its dividend. Despite this setback, Buffett continued to support his investment. The company responded by planning to increase its spending on marketing and advertising and to change its approach to developing new products. That said, the company has ultimately proven to be a long-term investment for him. As of the end of Q2 2024, The Kraft Heinz Company (NASDAQ:KHC) is the seventh-largest holding of Berkshire Hathaway. The hedge fund owned nearly 326 million shares in the company, worth $10.5 billion. The company made up 3.74% of the firm’s portfolio.

The Kraft Heinz Company (NASDAQ:KHC) reported a robust cash position during the first six months of FY24, which is crucial for a company that pays dividends. The company’s operating cash flow for the quarter came in at $1.7 billion, which showed an 8.1% growth from the same period last year. Its free cash flow for the period was $1.2 billion, up 8.7% from the prior-year period. It currently pays a quarterly dividend of $0.40 per share and has a dividend yield of 4.52%, as of August 21.

At the end of June 2024, 43 hedge funds tracked by Insider Monkey owned stakes in The Kraft Heinz Company (NASDAQ:KHC), which remained unchanged from the previous quarter. These stakes are valued at more than $11 billion in total.