Is It Finally Time to Buy This Dividend Stock Now That It Has a 6.6% Dividend Yield?

• Kraft Heinz's dividend output is astir 6.6% aft the stock's pullback.

• Free currency travel has been moving good supra its dividend payments.

• Shares commercialized astatine conscionable 8 times trailing-12-month escaped currency flow.

• 10 stocks we similar amended than Kraft Heinz ›

Kraft Heinz's (NASDAQ: KHC) 6.6% dividend output tin marque a important quality successful a portfolio for dividend investors seeking income. Of course, galore investors are skeptical of precocious dividend yields -- and for bully reason: precocious dividend yields are often the effect of a banal being nether pressure. And, successful this case, that is precisely what has happened. As of this writing, shares are down much than 20% twelvemonth to day and implicit 30% implicit the past 5 years, arsenic capitalist appetite for the banal has declined during a play of deteriorating income trends.

But with the dividend stock's valuation present astatine bargain levels, and the institution making immoderate large structural and enactment changes, is it present yet clip to buy?

Here are 3 reasons wherefore I deliberation Kraft Heinz banal whitethorn beryllium worthy a spot successful dividend investors' portfolios today.

Year to date, Kraft Heinz's escaped currency travel (the company's currency travel from regular operations little superior expenditures) has travel successful astatine $2.5 billion, up 23.3% twelvemonth implicit year. This easy covers the company's $1.4 cardinal successful full dividend payments implicit this aforesaid period.

This spread betwixt escaped currency travel and dividends paid indicates that the company's dividend payout is apt sustainable, arsenic it's being easy funded by the currency near implicit aft the concern has covered some regular operations and superior expenditures.

Further, it's worthy noting however this important currency travel is awesome considering the income backdrop. Kraft Heinz's year-to-date income fell 2.3% twelvemonth implicit year. So, portion investors person bully crushed to interest astir Kraft Heinz's income trends, the institution tin beryllium praised for its quality to make cash. Kraft Heinz is simply a currency cow.

And shares are cheap. This is not lone evident by the stock's dividend output of 6.6% but besides by the information that shares presently commercialized astatine conscionable 8 times trailing-12-month escaped currency flow.

A valuation similar this suggests investors fundamentally person zero maturation expectations for the company. In different words, the banal could apt supply a tenable instrumentality for investors from present conscionable by maintaining its existent income and escaped currency travel levels.

But dividends aren't the lone mode Kraft Heinz is returning currency to shareholders. It's doing it indirectly via dividends, too. In 2024, the institution repurchased $988 cardinal of its shares. And successful the archetypal 9 months of 2025, it has repurchased different $435 cardinal and said it had astir $1.5 cardinal remaining nether its existent repurchase authorization. For a institution with a marketplace capitalization of nether $29 cardinal arsenic of this writing, repurchases similar this marque a worldly quality successful reducing stock number and expanding the ownership involvement of each stock of its investors.