The Kraft Heinz Company, together with its subsidiaries, manufactures and markets food and beverage products in North America and internationally. Its products include condiments and sauces, cheese and dairy products, meals, meats, refreshment beverages, coffee, and other grocery products under the Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Maxwell House, Kool-Aid, Jell-O, Heinz, ABC, Master, Quero, Kraft, Golden Circle, Wattie's, Pudliszki, and Plasmon brands. It sells its products through its own sales organizations, as well as through independent brokers, agents, and distributors to chain, wholesale, cooperative, and independent grocery accounts; convenience, value, and club stores; pharmacies and drug stores; mass merchants; foodservice distributors; institutions, including hotels, restaurants, bakeries, hospitals, health care facilities, and government agencies; and online through various e-commerce platforms and retailers. The company was formerly known as H.J. Heinz Holding Corporation and changed its name to The Kraft Heinz Company in July 2015. The Kraft Heinz Company was founded in 1869 and is based in Pittsburgh, Pennsylvania.

The Kraft Heinz Company currently shows a mixed fundamental picture. The P/E ratio at 28.83 is notably higher than the industry median, indicating potential overvaluation, especially given its declining trend from the previous periods. The price-to-sales ratio is also significantly above industry standards, suggesting that the stock might be overpriced relative to its revenue generation. Additionally, the net income is negative, considerably below the industry median, and the operating income has also seen a decline. This raises concerns about profitability and operational efficiency. On a positive note, the company’s net worth is extraordinarily high compared to the industry, which reflects strong asset backing. Moreover, the debt-to-equity ratio suggests that the company maintains a relatively low debt load, which is favorable. However, the lack of dividend yield points to potential weaknesses in cash distribution to shareholders. Overall, while some metrics indicate strength, the concerning trends in profitability and valuation metrics suggest a cautious outlook on the stock's target price.

The Kraft Heinz Company

A month has gone by since the last earnings report for Kraft Heinz (KHC). Shares have lost about 8.2% in that time frame, underperforming the S&P 500.
But investors have to be wondering, will the recent negative trend continue leading up to its next earnings release, or is Kraft Heinz due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its latest earnings report in order to get a better handle on the important drivers.
The Kraft Heinz Company Q4 Earnings Beat Estimates, Organic Sales Fall 4.2% Y/Y
The Kraft Heinz Company posted fourth-quarter 2025 results, with the top line missing the Zacks Consensus Estimate but the bottom line exceeding the same. However, both metrics declined year over year.
The company has greater-than-expected potential to modernize its brands and address operational challenges, many of which are within its control. To sharpen its focus on performance improvement, the company has paused the separation initiative and shifted resources toward executing its core strategy. The Kraft Heinz Company is also launching a $600 million investment across marketing, sales, R&D, product improvement, and selective pricing, supported by a strong balance sheet and robust free cash flow, which management believes will accelerate the company’s recovery and growth trajectory.
The Kraft Heinz Company’s Quarterly Performance: Key Insights
The Kraft Heinz Company posted adjusted earnings of 67 cents per share, beating the Zacks Consensus Estimate of 61 cents. Quarterly earnings fell 20.2% year over year, mainly due to lower adjusted operating income, elevated taxes on adjusted earnings, and increased interest expense, partially offset by favorable changes in other income/expense and a lower share count.
The company generated net sales of $6,354 million, down 3.4% year over year. The metric missed the Zacks Consensus Estimate of $6,418 million. Net sales included a favorable foreign currency impact of 0.8 percentage points. Organic net sales decreased 4.2% compared with the prior year period. Pricing contributed a positive 0.5 percentage point impact, driven by increases in the International Developed Markets and Emerging Markets segments, while pricing in North America remained flat. Favorable pricing primarily reflected actions taken in select categories to offset higher input costs. Volume/mix declined by 4.7 percentage points year over year, with decreases across all segments. The unfavorable volume/mix was mainly due to declines in coffee, cold cuts, Indonesia, bacon and Ore-Ida.
The adjusted gross profit of $2,101 million decreased from the $2,262 million reported in the year-ago quarter. The adjusted gross margin contracted 130 bps to 33.1%.
Adjusted operating income declined 15.9% to $1,164 million, primarily due to inflation in commodities and manufacturing exceeding productivity gains, while higher marketing spend and lower volumes further weighed on margins. These factors more than offset the benefits of pricing actions.
Decoding The Kraft Heinz Company’s Segment-Wise Results
North America: Net sales of $4,700 million declined 5.4% year over year. Organic sales fell 5.4%. During the quarter, pricing remained flat and the volume/mix fell 5.4 percentage points.
International Developed Markets: Net sales of $930 million were up 1.8% year over year. Organic sales declined 2.4%, with pricing up 1.8 percentage points and volume/mix dipping 4.2 percentage points.
Emerging Markets: Net sales of $724 million were up 4.3% year over year. Organic sales grew 2.2%. Pricing up 2.4 percentage points, but volume/mix down 0.2 percentage points.
The Kraft Heinz Company: Other Financial Aspects
The Kraft Heinz Company ended the quarter with cash and cash equivalents of $2,615 million, long-term debt of $19,311 million and total shareholders’ equity (excluding noncontrolling interest) of $41,664 million. Net cash provided by operating activities was $4,462 million for the year ended Dec. 27, 2025, and free cash flow was $3,661 million.
In fiscal 2025, the company returned significant capital to shareholders, paying $1.9 billion in cash dividends and repurchasing $436 million of common stock. Approximately $400 million of these repurchases were executed under the company’s publicly announced share repurchase program. As of Dec. 27, 2025, the company had approximately $1.5 billion remaining under its authorized share repurchase program.
What to Expect From Kraft Heinz in 2026?
For fiscal 2026, The Kraft Heinz Company expects organic net sales to decline 1.5% to 3.5% year over year, reflecting an estimated 100 bps impact from incremental SNAP-related headwinds. Constant currency adjusted operating income is projected to decline 14% to 18%. Adjusted gross profit margin is expected to decrease 25-75 bps versus the prior year. The company anticipates adjusted EPS to be between $1.98 and $2.10.
How Have Estimates Been Moving Since Then?
In the past month, investors have witnessed a downward trend in estimates review.
The consensus estimate has shifted -17.78% due to these changes.
VGM Scores
Currently, Kraft Heinz has a average Growth Score of C, a score with the same score on the momentum front. Charting a somewhat similar path, the stock was allocated a grade of B on the value side, putting it in the second quintile for value investors.
Overall, the stock has an aggregate VGM Score of B. If you aren't focused on one strategy, this score is the one you should be interested in.
Outlook
Estimates have been broadly trending downward for the stock, and the magnitude of these revisions indicates a downward shift. It's no surprise Kraft Heinz has a Zacks Rank #5 (Strong Sell). We expect a below average return from the stock in the next few months.
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Kraft Heinz (KHC) Down 8.2% Since Last Earnings Report: Can It Rebound?

Key Points
One position in Berkshire's huge equities portfolio is down close to 70% since 2015.
Berkshire has stuck with it but may soon sell the position.
In 2013, Berkshire Hathaway (NYSE: BRKA)(NYSE: BRKB) partnered with the Brazilian private equity firm 3G to acquire Heinz for an enterprise value of $28 billion. Two years later, they merged Heinz with Kraft to create Kraft Heinz (NASDAQ: KHC), the company investors know today. The investment has arguably been one of Warren Buffett's worst.
Since the merger, the stock is down nearly 67%, and Berkshire still owns 27.5% of the company. In his first letter to shareholders, new CEO Greg Abel acknowledged that "our return has been well short of adequate." Should investors sell the stock?
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Can Kraft Heinz be fixed?
Kraft Heinz, the maker of well-known food brands such as Heinz Ketchup, Philadelphia Cream Cheese, and Oscar Mayer meats, has struggled amid competition and shifting consumer preferences toward healthier, less processed alternatives.
Some might also argue that 3G, known for imposing major cost-cutting measures, didn't invest enough in the brands, marketing, and new product development to meet the needs of and engage modern consumers. Regardless, the company has significant debt, and its financial performance has struggled.
While Berkshire has stuck with the stock, its patience has clearly started to fade. In May, the conglomerate relinquished its two seats on the company's board of directors. At the time, Kraft Heinz had said it would evaluate strategic transactions to unlock shareholder value.
Last September, the company announced it would split into two companies, one focused on brands poised for growth, such as those in emerging markets, and another that included more "beloved brands" and had greater scale, enabling it to generate reliable free cash flow. The Berkshire team was not a fan of this plan. In September, former CEO Warren Buffett told CNBC he was disappointed with it and didn't think it was the right solution to the company's issues.
In a Securities and Exchange Commission filing in late January, Berkshire sought to register a potential resale of all its remaining Kraft Heinz shares. The company has written down its investment in the food company by close to $7 billion on two separate occasions, once in 2019 and once last August.
But the story didn't end there. Kraft Heinz hired a new CEO, Steve Cahillane, starting in January, seemingly to carry out the split, because Cahillane had helped split Kellogg into two companies.
But in early February, he announced it would pause its work to split the company, saying that he believes Kraft Heinz's issues are "fixable and within our control," according to CNBC. Cahillane added that his goal is to get the company back to profitable growth, and he announced a $600 million investment to spur these efforts by expanding marketing, sales, and research and development.
Can new leadership execute a turnaround?
While Abel praised the decision, others were less enthusiastic. "Investors will view this negatively because it indicates that the businesses are not in strong enough condition to operate on a stand-alone basis, and it is uncertain when they will," Robert Moskow, an analyst at TD Cowen -- a part of Toronto Dominion Bank -- said in research note, according to CNBC.
Given the company's failure to create shareholder value over more than the past decade, I still view Kraft Heinz as a value trap and "show me" story. Now, the company has a trailing-12-month dividend yield of 6.62% and a free cash flow yield of 12.75%, making it attractive to those looking to generate passive income. However, shares could fall further or continue to significantly underperform the broader market, so even this play does not come without risk.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

New CEO Greg Abel Called One of Berkshire Hathaway's Long-Term Investments "Well Short of Adequate." Should Investors Sell the Stock?

Investors in Kraft Heinz Co (Symbol: KHC) saw new options begin trading today, for the June 2027 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 468 days until expiration the newly trading contracts represent a potential opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the KHC options chain for the new June 2027 contracts and identified one put and one call contract of particular interest.
The put contract at the $22.50 strike price has a current bid of $2.13. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $22.50, but will also collect the premium, putting the cost basis of the shares at $20.37 (before broker commissions). To an investor already interested in purchasing shares of KHC, that could represent an attractive alternative to paying $23.82/share today.
Because the $22.50 strike represents an approximate 6% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 56%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 9.47% return on the cash commitment, or 7.38% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Kraft Heinz Co, and highlighting in green where the $22.50 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $25.00 strike price has a current bid of $2.13. If an investor was to purchase shares of KHC stock at the current price level of $23.82/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $25.00. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 13.90% if the stock gets called away at the June 2027 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if KHC shares really soar, which is why looking at the trailing twelve month trading history for Kraft Heinz Co, as well as studying the business fundamentals becomes important. Below is a chart showing KHC's trailing twelve month trading history, with the $25.00 strike highlighted in red:
Considering the fact that the $25.00 strike represents an approximate 5% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 53%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 8.94% boost of extra return to the investor, or 6.97% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 26%, while the implied volatility in the call contract example is 33%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $23.82) to be 25%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

KHC June 2027 Options Begin Trading

Looking at options trading activity among components of the S&P 500 index, there is noteworthy activity today in Mosaic Co (Symbol: MOS), where a total volume of 35,135 contracts has been traded thus far today, a contract volume which is representative of approximately 3.5 million underlying shares (given that every 1 contract represents 100 underlying shares). That number works out to 52.5% of MOS's average daily trading volume over the past month, of 6.7 million shares. Especially high volume was seen for the $30 strike call option expiring January 15, 2027, with 11,905 contracts trading so far today, representing approximately 1.2 million underlying shares of MOS. Below is a chart showing MOS's trailing twelve month trading history, with the $30 strike highlighted in orange:
Universal Health Services, Inc. (Symbol: UHS) saw options trading volume of 4,225 contracts, representing approximately 422,500 underlying shares or approximately 51.4% of UHS's average daily trading volume over the past month, of 822,370 shares. Particularly high volume was seen for the $200 strike put option expiring March 20, 2026, with 2,079 contracts trading so far today, representing approximately 207,900 underlying shares of UHS. Below is a chart showing UHS's trailing twelve month trading history, with the $200 strike highlighted in orange:
And Kraft Heinz Co (Symbol: KHC) options are showing a volume of 76,420 contracts thus far today. That number of contracts represents approximately 7.6 million underlying shares, working out to a sizeable 47% of KHC's average daily trading volume over the past month, of 16.3 million shares. Particularly high volume was seen for the $24.50 strike call option expiring March 06, 2026, with 18,351 contracts trading so far today, representing approximately 1.8 million underlying shares of KHC. Below is a chart showing KHC's trailing twelve month trading history, with the $24.50 strike highlighted in orange:
For the various different available expirations for MOS options, UHS options, or KHC options, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Notable Thursday Option Activity: MOS, UHS, KHC

Looking at the universe of stocks we cover at Dividend Channel, on 3/6/26, Kraft Heinz Co (Symbol: KHC), Tapestry Inc (Symbol: TPR), and Wingstop Inc (Symbol: WING) will all trade ex-dividend for their respective upcoming dividends. Kraft Heinz Co will pay its quarterly dividend of $0.40 on 3/27/26, Tapestry Inc will pay its quarterly dividend of $0.40 on 3/23/26, and Wingstop Inc will pay its quarterly dividend of $0.30 on 3/27/26. As a percentage of KHC's recent stock price of $24.22, this dividend works out to approximately 1.65%, so look for shares of Kraft Heinz Co to trade 1.65% lower — all else being equal — when KHC shares open for trading on 3/6/26. Similarly, investors should look for TPR to open 0.26% lower in price and for WING to open 0.12% lower, all else being equal.
Below are dividend history charts for KHC, TPR, and WING, showing historical dividends prior to the most recent ones declared.
Kraft Heinz Co (Symbol: KHC):
Tapestry Inc (Symbol: TPR):
Wingstop Inc (Symbol: WING):
In general, dividends are not always predictable, following the ups and downs of company profits over time. Therefore, a good first due diligence step in forming an expectation of annual yield going forward, is looking at the history above, for a sense of stability over time. This can help in judging whether the most recent dividends from these companies are likely to continue. If they do continue, the current estimated yields on annualized basis would be 6.61% for Kraft Heinz Co, 1.04% for Tapestry Inc, and 0.49% for Wingstop Inc.
In Wednesday trading, Kraft Heinz Co shares are currently down about 1.2%, Tapestry Inc shares are off about 1.3%, and Wingstop Inc shares are up about 2.9% on the day.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Ex-Dividend Reminder: Kraft Heinz, Tapestry and Wingstop

After navigating an unusually volatile cost environment, Mondelez International, Inc. MDLZ is balancing pricing discipline with the need to protect volumes. The question is whether organic sales growth, which held up in 2025 despite consumer pressure, can maintain its momentum as pricing moderates and category conditions remain soft.
Organic net revenues rose 4.3% for the full year and accelerated to 5.1% in the fourth quarter. Growth was primarily driven by higher net pricing, implemented to offset record levels of cocoa inflation. However, volume and mix declined 3.7% for the year and 4.8% in the fourth quarter. Elasticity in chocolate, revenue growth management actions and soft U.S. biscuit consumption weighed on volumes even as consumers continued to show loyalty to core brands.
For 2026, organic net revenues are expected to range from flat to an increase of 2%. The outlook reflects ongoing softness in category growth and select price investments to protect scale in key markets.
The plan also includes substantial reinvestment aimed at improving volume trends, expanding distribution and strengthening brand presence across channels and occasions. At the same time, the broader backdrop remains challenging, with soft consumer sentiment and commodity volatility shaping purchasing behavior.
Whether Mondelez can sustain organic sales momentum in 2026 will depend on how effectively it balances pricing, reinvestment and volume recovery. After a year led by pricing strength, the coming period shifts the focus toward stabilizing demand while navigating a cautious consumer environment.
Organic Sales Momentum at HSY, KHC and CAG
For The Hershey Company HSY, organic constant-currency net sales increased 5.7% in the fourth quarter of 2025, driven primarily by net price realization of about 9%. Volume/mix declined 3%. For 2026, HSY expects reported net sales growth of 4% to 5%, supported by pricing, innovation and advertising investments. With elasticity and cocoa costs still in focus, The Hershey Company is balancing growth with margin recovery.
The Kraft Heinz Company KHC saw its organic net sales drop 4.2% in the fourth quarter of 2025. During the quarter, KHC’s volume/mix fell 4.7%. For 2026, The Kraft Heinz Company expects organic net sales to decline in the range of 1.5%-3.5%, implying incremental SNAP headwinds.
Conagra Brands CAG reported a 3% decline in organic net sales in second-quarter fiscal 2026 due to a 3% volume drop. CAG reaffirmed fiscal 2026 organic net sales guidance of a decline of 1% to an increase of 1%. Conagra Brands is aiming to stabilize volumes against a cautious consumer backdrop.
The Final Take on MDLZ
Organic sales continue to be shaped by how much pricing can contribute as shoppers stay cautious and whether volumes can stabilize after recent declines. For Mondelez, 2026 looks like a transition year as the company leans more on reinvestment and sharper execution, while the consumer backdrop remains cautious. The real test is whether these actions can improve demand trends and reduce volume pressure as pricing normalizes.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Will Mondelez's Organic Sales Growth Keep Momentum Going in 2026?

Investors in Kraft Heinz Co (Symbol: KHC) saw new options become available today, for the March 2027 expiration. One of the key data points that goes into the price an option buyer is willing to pay, is the time value, so with 387 days until expiration the newly available contracts represent a possible opportunity for sellers of puts or calls to achieve a higher premium than would be available for the contracts with a closer expiration. At Stock Options Channel, our YieldBoost formula has looked up and down the KHC options chain for the new March 2027 contracts and identified one put and one call contract of particular interest.
The put contract at the $20.00 strike price has a current bid of 51 cents. If an investor was to sell-to-open that put contract, they are committing to purchase the stock at $20.00, but will also collect the premium, putting the cost basis of the shares at $19.49 (before broker commissions). To an investor already interested in purchasing shares of KHC, that could represent an attractive alternative to paying $24.38/share today.
Because the $20.00 strike represents an approximate 18% discount to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the put contract would expire worthless. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 72%. Stock Options Channel will track those odds over time to see how they change, publishing a chart of those numbers on our website under the contract detail page for this contract. Should the contract expire worthless, the premium would represent a 2.55% return on the cash commitment, or 2.41% annualized — at Stock Options Channel we call this the YieldBoost.
Below is a chart showing the trailing twelve month trading history for Kraft Heinz Co, and highlighting in green where the $20.00 strike is located relative to that history:
Turning to the calls side of the option chain, the call contract at the $32.50 strike price has a current bid of 41 cents. If an investor was to purchase shares of KHC stock at the current price level of $24.38/share, and then sell-to-open that call contract as a "covered call," they are committing to sell the stock at $32.50. Considering the call seller will also collect the premium, that would drive a total return (excluding dividends, if any) of 34.99% if the stock gets called away at the March 2027 expiration (before broker commissions). Of course, a lot of upside could potentially be left on the table if KHC shares really soar, which is why looking at the trailing twelve month trading history for Kraft Heinz Co, as well as studying the business fundamentals becomes important. Below is a chart showing KHC's trailing twelve month trading history, with the $32.50 strike highlighted in red:
Considering the fact that the $32.50 strike represents an approximate 33% premium to the current trading price of the stock (in other words it is out-of-the-money by that percentage), there is also the possibility that the covered call contract would expire worthless, in which case the investor would keep both their shares of stock and the premium collected. The current analytical data (including greeks and implied greeks) suggest the current odds of that happening are 66%. On our website under the contract detail page for this contract, Stock Options Channel will track those odds over time to see how they change and publish a chart of those numbers (the trading history of the option contract will also be charted). Should the covered call contract expire worthless, the premium would represent a 1.68% boost of extra return to the investor, or 1.59% annualized, which we refer to as the YieldBoost.
The implied volatility in the put contract example is 43%, while the implied volatility in the call contract example is 29%.
Meanwhile, we calculate the actual trailing twelve month volatility (considering the last 251 trading day closing values as well as today's price of $24.38) to be 26%. For more put and call options contract ideas worth looking at, visit StockOptionsChannel.com.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

Interesting KHC Put And Call Options For March 2027

Key Points
For Best Buy, improvements to the macro picture could drive a comeback.
Kimberly-Clark's upcoming merger could cement its status as a dividend growth stock.
Kraft Heinz is no longer splitting up, but there may still be a path to turnaround for the floundering foods company.
Despite recent volatility, the stock market remains near record highs. However, in the case of certain stocks, including some dividend stocks, various factors have placed them under pressure.
However, after falling 20% or more from their 52-week highs, now may be the time to go bottom-fishing with these stocks. Following their respective price declines, each now has a much higher forward yields, providing steady gains regardless of price action.
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While some of these stocks have justifiably pulled back, in certain situations, the market has overreacted to perceived near-term negatives. The stocks I'm talking about are Best Buy (NYSE: BBY), Kimberly-Clark (NASDAQ: KMB), and Kraft Heinz (NASDAQ: KHC).
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High-yielding Best Buy still has recovery potential
Over the past year, factors like slowing consumer spending and tariff uncertainty have weighed on Best Buy shares, pushing them over 30% lower. Worse yet, according to analysts like J.P. Morgan's Christopher Horvers, these headwinds are likely to persist in 2026.
Just recently, the analyst downgraded the stock from "Overweight" to "Neutral" and lowered his price target from $99 to $76 per share. Yet while challenging times could continue for the electronics retailer, for long-term investors, this may have created an opportune entry point for shares.
At current prices, Best Buy trades for 11.5 times forward earnings. In the past, shares have traded at a slightly higher mid-teens forward multiple. Moreover, over a longer time frame, if issues like tariffs and high inflation fade, a big earnings rebound may be in store.
In the meantime, investors can collect Best Buy's 5.9% dividend. With a forward payout ratio of just 52.7%, this dividend appears sustainable. The company also has a 22-year track record of dividend growth. Payouts have increased by an average of 15.2% annually over the past 10 years.
Kimberly-Clark's upcoming merger could exceed expectations
In November, Kimberly-Clark announced plans to acquire Kenvue for a $48.7 billion in cash and stock. If completed, this deal will create one of the world's largest consumer health and personal care companies, with brands that include Huggies, Kleenex, Tylenol, Listerine, and Band-Aid.
Kimberly-Clark shares tumbled on news of the merger. Analysts and investors appear skeptical that the deal will create shareholder value. However, investors may be underestimating the impact this transaction could have on the company's bottom line.
As noted in the merger announcement, total annualized cost savings could reach $2.4 billion. Besides being accretive to Kimberly-Clark's earnings, the deal should bode well for future dividend growth.
Kimberly-Clark is one of the Dividend Kings, with over 50 years of consecutive annual dividend growth. Dividend growth has been modest, averaging 3.8% annually. However, increased earnings growth from the merger could lead to higher dividend growth in the future.
Kraft Heinz could still bounce back, even as it puts spin-off plans on pause
Earlier this month, Kraft Heinz paused plans to split its condiments and staple foods businesses into separate companies. Many investors may have seen this event as a key near-term catalyst, but the packaged food giant's latest plans could also pave the way for higher prices.
For one, it's possible that, even among food stocks, Kraft Heinz has become oversold. Shares have fallen by 25% from the stock's 52-week high. At current prices, shares trade for less than 10 times forward earnings. Compare that to peers like General Mills and Campbell's, both of which are at forward multiples in the low to mid-teens.
Given its valuation, even a small improvement could lead to a rerating. In the meantime, Kraft Heinz investors can collect the stock's relatively high dividend. At today's prices, the stock has a forward dividend yield of 6.6%
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Thomas Niel has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Best Buy and Kenvue. The Motley Fool recommends Campbell's and Kraft Heinz. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

3 Magnificent Dividend Stocks Down 20% to Buy and Hold Forever

Key Points
General Mills slashed its full-year guidance, sending shockwaves throughout the packaged food industry.
Campbell’s is also facing earnings declines and margin pressure.
Both stocks are dirt cheap and can afford their generous dividends.
General Mills (NYSE: GIS) fell 7% on Feb. 17 after unexpectedly cutting its full-year fiscal 2026 guidance.
General Mills now expects organic net sales to decline between 1.5% and 2%, compared to a previous range of down 1% to up 1%. Meanwhile, adjusted diluted earnings per share (EPS) are now expected to fall by 16% to 20%, down from a previous range of a 10% to 15% decline.
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The update was startling, given that General Mills reaffirmed its prior guidance just two months ago when it reported its second-quarter fiscal 2026 earnings.
General Mills and fellow packaged foods company Campbell's (NASDAQ: CPB) are now hovering around multiyear lows, with both stocks down more than 50% from all-time highs.
Here's why these value stocks are under pressure but worth buying now.
A sectorwide slowdown
Consumer staples was the worst-performing sector in 2025. But the packaged food portion of the sector had an especially abysmal performance as many large companies hit multiyear or even multidecade lows.
Consumer preferences remain consistent for household and personal products, but they are changing for packaged foods. Consumers are increasingly interested in meals and snacks that taste good and are good for them. So companies like General Mills and Campbell's are getting hit with a one-two punch of a sectorwide slowdown and deteriorating brand value that could extend beyond the current cycle.
In its Feb. 17 press release, General Mills said, "Weak consumer sentiment, heightened uncertainty, and significant volatility have weighed on category growth and impacted consumer purchase patterns, resulting in a slower pace and higher cost of volume recovery than initially expected."
General Mills is well known for its cereal brands like Cheerios and Cinnamon Toast Crunch, but it also owns popular snack brands like Chex Mix and Gardetto's, Fiber One, Betty Crocker, Annie's, and premium pet food brand Blue Buffalo.
Thanks to its 2018 acquisition of Snyder's-Lance -- Campbell's also has a sizable snack focus with brands like Goldfish, Lance, Snyder's of Hanover, Pepperidge Farm, Cape Cod, and Kettle. But it focused more on lunch and dinner meals than General Mills, with its flagship Campbell's soup brands, Prego, Rao's Homemade tomato sauce, Pace, V8, and more.
General Mills and Campbell's are far better positioned to adapt to changing consumer preferences toward healthier snacks and meals than packaged food companies that depend heavily on ultra-processed, high-sugar, and high-sodium products like Kraft Heinz and Conagra Brands.
Despite their strong brands, General Mills and Campbell's are facing earnings and margin compression.
Both companies have implemented cost-saving strategies to improve efficiency and help offset consumer weakness. But so far, those efforts haven't translated into meaningful results, which is partly why both stocks are under so much pressure.
However, General Mills is forecasting $100 million in efficiency savings in fiscal 2026. Meanwhile, Campbell's predicts $70 million in fiscal 2026 enterprise cost savings.
Reliable dividends with high yields
General Mills has one of the best dividend track records among U.S. publicly traded companies. When factoring in its predecessor firm, the Washburn-Crosby Company, General Mills has paid dividends without interruption for 127 years and has never cut its dividend. However, there have been several periods in which General Mills hasn't raised its payout, so it isn't a part of the elite category of Dividend Kings, which are companies that have paid and raised their dividends for at least 50 consecutive years.
Campbell's has a decent, but less impressive, dividend track record. It cut its payout by around 30% in 2001, but has since increased its dividend by 70% from the pre-cut price.
The sell-off in both stocks has pushed General Mills' yield up to 5.4% and Campbell's to 5.6%. Investors can rest easy knowing that both companies should be able to afford their dividends -- even when earnings decline.
General Mills reported $4.21 in adjusted fiscal 2025 EPS. The midpoint of its updated guidance calls for an 18% decline in adjusted EPS with 95% free cash flow (FCF) conversion -- leaving around $3.28 in FCF per share to cover its $2.44 annual dividend. Even with lower earnings and FCF, General Mills can still support its dividend with cash.
Similarly, Campbell's current guidance suggests earnings should easily cover its dividend. Despite higher capital expenditures, Campbell's continues to generate free cash flow to cover its dividend and stock buybacks.
General Mills' and Campbell's growth are both slowing, but each remains highly profitable. Since both stocks are declining faster than their earnings, their valuations are dirt cheap.
Both stocks are trading at substantial discounts to their 10-year median price-to-earnings and price-to-free-cash-flow ratios. And that's even when factoring in weak forward earnings estimates.
Top value stocks to buy for patient investors
General Mills and Campbell's are two high-yield deep value stocks to buy now. Investor expectations are low given weak near-term guidance. So even mediocre results could be cause for celebration.
For long-term investors, the focus should be on brand durability, dividend reliability and affordability, and valuation.
General Mills and Campbell's check all three boxes and stand out as arguably the two best buys in the packaged food industry for passive-income investors.
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Before you buy stock in General Mills, consider this:
The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and General Mills wasn’t one of them. The 10 stocks that made the cut could produce monster returns in the coming years.
Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $424,262!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,163,635!*
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Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool recommends Campbell's and Kraft Heinz. The Motley Fool has a disclosure policy.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

2 Value Stocks With Dividend Yields Over 5% to Buy Near 52-Week Lows

Here are three stocks added to the Zacks Rank #5 (Strong Sell) List today:
Avantor, Inc. AVTR provides mission-critical products and services for life sciences industries. The Zacks Consensus Estimate for its current year earnings has been revised 9% downward over the last 60 days.
Columbus McKinnon Corporation CMCO is a scientific and technical instruments company. The Zacks Consensus Estimate for its current year earnings has been revised 26% downward over the last 60 days.
The Kraft Heinz Company KHC is a food and beverages company. The Zacks Consensus Estimate for its current year earnings has been revised 10.3% downward over the last 60 days.
View the entire Zacks Rank #5 List.
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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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