We recently released a list According to billionaires, 10 best long-term dividend stocks can be purchased. In this article, we will explore the position of Kraft Heinz Corporation (NASDAQ:KHC) with other best long-term dividend stocks.
Dividend stocks are becoming more and more popular, and are popular among billionaire investors every day. A CNBC report notes that dividend stocks are always a reliable option for many, providing stable revenue from company cash flows, and corporate cash flows are stable despite volatility in stock prices. As the stock and bond markets are volatile, these stocks are becoming increasingly attractive and can serve as a balanced option between broader investor growth and output.
The long-term appeal of dividend-paying stocks remains strong, especially for investors who are aiming to reduce risks while still pursuing growth. Ramona Persaud, portfolio manager for Fidelity Equity Income Fund and Fidelity Global Equity Income Fund, generally prefers high-quality companies that offer reliable dividends and affordable prices. She stressed that falling interest rates can benefit dividend stocks because their yields are more attractive than bonds. Additionally, Persaud mentioned that lower interest rates could help drive wider market growth, unlike recent results, which are driven primarily by some large growth stocks.
Her investment strategy focuses on companies with a strong balance sheet, consistent cash flow and huge potential for return. She also highlights the importance of valuations – seeking stocks at reasonable prices compared to peers and historical averages, while target dividend yields stand out in the current market. She believes this convergence of quality, value and revenue contributes to the fund's strong performance in a growing and declining market.
With the dominance of high-performance technology stocks, dividend stocks are becoming increasingly popular in the current market again. Since the beginning of 2025, the dividend aristocratic index tracks the performance of companies that have been in dividend growth for at least 25 consecutive years has fallen by more than 2%, while the widespread market has fallen by nearly 6%. This trend shows that dividends are attracting people, with more and more companies introducing dividend policies, and existing dividend payers are gradually increasing their spending to attract investors. S&P Global Report predicts that in 2025, 408 companies in the wider market will pay dividends. Nearly 350 companies are expected to increase their dividends next year, with total dividends estimated to be up 6% compared to the previous year. In the overall U.S. market, total dividend growth is expected to be 4.6% in 2025. Since S&P accounts for about 85% of all dividend payments in the U.S., the S&P index is a reliable indicator of the broader dividend trend.
Dividend stocks are also a key component of the portfolio of many billionaire investors. Warren Buffett, for example, makes billions of dollars from dividend stocks every year, setting a strong example for other investors as his strategy is highly rated. In fact, nearly 90% of his fourth-quarter portfolio payroll, as well as many of them, are known for increasing dividends over time.
Close-up of an assembly line worker inspects newly produced condiments and seasonings.
To compile this list, we filtered out dividend stocks with strong financial and solid dividend policies. According to Insider Monkey's Billionaire Database's Q4 2024, we selected 10 of the most popular companies among billionaire investors. Stocks are ranked based on the number of billionaires that have shares.
At Insider Monkey, we are addicted to hedge funds. Why are we interested in stocks that hedge funds to accumulate? The reason is simple: Our research shows that we can beat the market by mimicking the top stocks of the best hedge funds. Our strategy for quarterly newsletters selects 14 small and large stocks every quarter, returning 373.4% since May 2014, beating its benchmark by 218 percentage points (See more details here).
Number of billionaire holders: 15
Kraft Heinz Company (NASDAQ: KHC) is an American multinational food company that provides a wide range of food and beverage products. The company reported results for the fourth quarter of 2024, with weaker sales offset by increased profitability. Adjusted EPS was $0.84, surpassing expectations of $0.06, partly due to good tax performance and a decrease in outstanding stocks. Revenue fell 5% year-on-year to $6.58 billion, lower than expected $6.66 billion, with the continued softness of organic sales. In key U.S. markets, net sales fell 3.9% as price increases were not enough to compensate for lower sales.
Despite these challenges, Kraft Heinz Company (NASDAQ:KHC) maintained a solid financial position throughout fiscal 2024. Free cash flow increased by 6% year-on-year to $3.2 billion, while operating cash flow increased by 5.2% to a total of $4.2 billion. The company also refunded $2.7 billion to shareholders through dividends and share buybacks. As of April 27, its quarterly dividend was $0.42 per share and its dividend yield was 5.43%.
Warren Buffett, the biggest stakeholder of Kraft Heinz Company (NASDAQ: KHC), ended in the fourth quarter of 2024. Hedge funds own more than 325 million shares in the company, worth more than $10 billion.
Overall, KHC Ranked 9 According to billionaires, among our best long-term dividend stocks. Although we acknowledge the potential of KHC is an investment, our belief lies in the belief that certain undervalued dividend stocks have greater hope to provide higher returns and do so in a shorter time frame. If you are looking for an undervalued dividend stock that is more promising than KHC but has a 10x revenue per year and grows in double-digit revenue per year, check out our report on this report Dirt cheap dividend stocks.
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Disclosure: None. This article was originally published in Inside monkey.