The company is the third largest food and beverage manufacturer in North America and derives 76% of revenues from that market and 24% from overseas. The company’s other brands include ABC, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.
Buffett holds a big position, with 325 million shares of Kraft Heinz in the Berkshire Hathaway portfolio.
Kraft Heinz stock investors receive a 4.65% dividend. The BofA Securities price target of $48 compares with a $41.20 consensus target and Monday’s close at $34.24.
Kroger
This grocery chain giant is still pursuing the closing of the purchase of the Albertson’s chain, which will cement its status as the largest grocery store operator. Kroger Co. (NYSE: KR) operates as a retailer in the United States with a focus on combination food and drug stores, multi-department stores, marketplace stores and price impact warehouses.
Its combination food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products and toys.
The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.
Kroger also manufactures and processes food products for sale in its supermarkets and online, and it sells fuel through 1,613 fuel centers. As of January 29, 2022, the company operated 2,726 supermarkets under various banner names in 35 states and the District of Columbia.
Shareholders receive a 2.37% dividend. Kroger stock has a $65 target price at BofA Securities. That is well above the $50.86 consensus target. Monday’s final trade was for $48.56 a share.
Procter & Gamble
This company offers a very solid dividend and a host of recognizable products. Procter & Gamble Co. (NYSE: PG) is one of the world’s largest consumer products firms and one of the oldest companies in the Fortune 500. Its many brands include Pampers, Tide, Bounty, Charmin, Gillette, Oral B, Crest, Olay, Pantene, Head & Shoulders, Ariel, Gain, Always, Tampax, Downy and Dawn.
The company sells its products through mass merchandisers, e-commerce, grocery stores, membership club stores, drug stores, department stores, distributors, wholesalers, baby stores, specialty beauty stores, high-frequency stores and pharmacies. The company has been very innovative in its product development process and uses that to help ensure future growth and cash flow. This should provide investors with years of steady growth and dividends.
The dividend yield is 2.40%. Morgan Stanley’s price objective is $174, and the consensus target is $166.49. Procter & Gamble stock closed on Monday at $155.79.
Again, while the market bounce back has been pleasant so far in 2023, the truth is the economy may be poised to roll over With at least two interest rate hikes possibly still on the way, in September and again in December, and a terminal rate that some say could be as high as 6%, the lagging effect of the biggest hike in rates since the 1980s may well come back to haunt the stock market.
Originally published at 24/7 Wall St.
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