Key Takeaways:
- Kraft Heinz currently offers a 5.6% dividend yield, which is one of the highest yields among large-cap U.S. consumer staples stocks.
- After a rough 2025, earnings and dividends are expected to grow steadily in 2026 and 2027.
- Based on current analyst price targets, Wall Street thinks the stock has just over 10% upside (without including the dividend).
- Get accurate financial data on over 100,000 global stocks for free on TIKR >>>
Kraft Heinz (KHC) isn’t exactly the most exciting name out there, but with one of the highest dividend yields for consumer staple stocks, it’s starting to catch the eye of dividend-focused investors.
Kraft Heinz remains as one of Berkshire Hathaway’s top holdings, and the stock could offer modest upside with a strong dividend yield today.
Here’s what investors should know about Kraft Heinz today.
Why Has Kraft Heinz‘s Stock Price Struggled?
KHC’s stock is down about 20% over the past year, because it’s been a challenging year for the business:
- In the first quarter of 2025, Kraft Heinz reported a 10.1% year-over-year decline in adjusted earnings per share (EPS). The company also lowered its full-year 2025 guidance.
- Kraft Heinz doesn’t have the pricing power that premium food brands enjoy, so raising prices isn’t always easy.
- Many investors have been shifting their money into growth stocks, leaving names like KHC behind.
Still, the business is profitable and remains as one of Berkshire Hathaway’s largest holdings.
Analysts Think the Stock Has Just Over 10% Upside Today
22 Wall Street analysts have an average price target of $32/share for Kraft Heinz stock, which implies that they think the stock has 11% upside today.
The stock is still trading near multi-year lows, but this expected upside suggests a more stable outlook ahead as input costs ease and margins improve.
See why Kraft Heinz could be undervalued today with TIKR (It’s free) >>>
1: Dividend Yield
Kraft Heinz currently offers a 5.6% dividend yield, which is very high for a consumer staple stock.
It’s also significantly above the company’s 5-year average yield of 4.5%. When a stock’s dividend yield rises like this, it’s usually a sign that its price has fallen, which means the stock is cheap compared to its fundamentals.
Find high-quality dividend stocks that look even better than Kraft-Heinz today. (It’s free) >>>
2: Dividend Safety
Despite the earnings hit that the company is expected to take in 2025, Kraft Heinz is expected to keep its dividend intact.
Currently, the company’s payout ratio sits just above 70%. It’s important to note that the company paid $1.60 in dividends per share in 2024, even though the graph below shows no dividend payments for 2024.
This is near the upper end of what’s typically considered to be a healthy payout ratio for a consumer staples stock, but the dividend is still safe.
The company’s free cash flow remains solid, and analysts expect EPS to gradually improve after 2025. That gives KHC enough breathing room to keep paying dividends and raise them slowly over time.
See Kraft Heinz’s full growth forecast and analyst estimates. (It’s free) >>>
3: Dividend Growth Potential
Kraft Heinz is expected to increase its dividend in the low to mid-single digits over the next few years.
This growth is expected to track closely with earnings, which analysts see rebounding from the 2025 dip.
Analysts anticipate that Kraft Heinz’s earnings per share (EPS) growth will be driven by strategic initiatives such as price adjustments, increased marketing investments, and operational efficiencies to counter inflationary pressures and increase demand for key brands.
TIKR Takeaway
Kraft Heinz isn’t a growth stock, but it could be an interesting stock for dividend investors. KHC offers a 5.6% dividend yield, a reasonable payout ratio, and is still one of Berkshire Hathaway’s top holdings.
With just over 10% upside and a dividend that looks safe and slightly growing, KHC may be a stock worth a closer look for dividend investors.
The TIKR Terminal offers industry-leading financial data on over 100,000 stocks and was built for investors who think of buying stocks as buying a piece of a business.
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Disclaimer:
Please note that the articles on TIKR are not intended to serve as investment or financial advice from TIKR or our content team, nor are they recommendations to buy or sell any stocks. We create our content based on TIKR Terminal’s investment data and analysts’ estimates. Our analysis might not include recent company news or important updates. TIKR has no position in any stocks mentioned. Thank you for reading, and happy investing!
