Is Kraft Heinz's 6.4%-Yielding Dividend Safe?
A key reason many investors buy shares of Kraft Heinz (NASDAQ: KHC) is undoubtedly for the dividend. At around 6.4%, it's a fairly high yield. It's also considerably higher than the S&P 500 average of just 1.2%. That dividend can be particularly valuable, as it provides investors with recurring income and enhances their overall total returns.
The problem is that if that dividend isn't sustainable, the risk will be reflected in the share price. Kraft Heinz's stock has declined by more than 20% over the past 12 months. Even if you factor in its dividend, its total returns are still a negative 16%.
Investors aren't buying the stock, despite a seemingly impressive payout. It's a sign that there could be trouble with the business that's keeping them away.
Source Fool.com
