Analysis of High Dividend Stocks in Nasdaq-100
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 3d ago
0mins
Should l Buy KHC?
Source: Fool
- Kraft Heinz Appeal: With a dividend yield exceeding 6.7%, Kraft Heinz's stock appears attractive despite a 19% decline over the past year, reflecting waning consumer interest in traditional packaged foods and potential sell-off by Berkshire Hathaway, which holds a 27.5% stake, undermining investor confidence.
- Comcast Diversification: Comcast has spun off its cable networks to focus on broadband internet, Peacock streaming, and theme parks, with theme park revenue rising nearly 22% to $2.9 billion in the latest quarter, although it faced a loss of 181,000 broadband customers, indicating challenges in its high-margin business.
- Paychex Stability: Paychex currently boasts a dividend yield close to 4.2%, despite a 30% drop in stock price over the past year; however, its total revenue, operating income, and earnings per share have all increased in the latest quarter, indicating strong demand in the small to mid-sized business sector.
- Investment Outlook: While Kraft Heinz and Paychex face stock price pressures, their high dividends attract income-seeking investors, particularly in the current economic climate, where investors may prefer these high-yield stocks for stable cash flow.
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Analyst Views on KHC
Wall Street analysts forecast KHC stock price to rise over the next 12 months. According to Wall Street analysts, the average 1-year price target for KHC is 25.86 USD with a low forecast of 24.00 USD and a high forecast of 28.00 USD. However, analyst price targets are subjective and often lag stock prices, so investors should focus on the objective reasons behind analyst rating changes, which better reflect the company's fundamentals.
15 Analyst Rating
0 Buy
14 Hold
1 Sell
Hold
Current: 24.445
Low
24.00
Averages
25.86
High
28.00
Current: 24.445
Low
24.00
Averages
25.86
High
28.00
About KHC
The Kraft Heinz Company manufactures and markets food and beverage products around the world through its eight consumer-driven product platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, and Meats. The Company has two reportable segments defined by geographic region: North America and International Developed Markets. Its other segments, consisting of West and East Emerging Markets (WEEM) and Asia Emerging Markets (AEM), are combined and disclosed as Emerging Markets. It manufactures its products from a wide variety of raw materials. Its brands include Kraft, Oscar Mayer, Heinz, Philadelphia, Lunchables, Velveeta, Ore-Ida, Capri Sun, Maxwell Apartment, Kool-Aid, Jell-O, Heinz, Golden Circle, Wattie’s, Plasmon, Heinz, ABC, Master, Quero, Kraft, and Pudliszki, among others. The Company’s products are sold through its own sales organizations and through independent brokers, agents, and distributors.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
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- Business Restructuring: Kraft Heinz is in the process of breaking up its business to focus on sauces and grocery brands, a move aimed at unlocking value for shareholders, and Berkshire's potential exit could accelerate this process.
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Analysis of High Dividend Stocks in Nasdaq-100
- Kraft Heinz Appeal: With a dividend yield exceeding 6.7%, Kraft Heinz's stock appears attractive despite a 19% decline over the past year, reflecting waning consumer interest in traditional packaged foods and potential sell-off by Berkshire Hathaway, which holds a 27.5% stake, undermining investor confidence.
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- Paychex Stability: Paychex currently boasts a dividend yield close to 4.2%, despite a 30% drop in stock price over the past year; however, its total revenue, operating income, and earnings per share have all increased in the latest quarter, indicating strong demand in the small to mid-sized business sector.
- Investment Outlook: While Kraft Heinz and Paychex face stock price pressures, their high dividends attract income-seeking investors, particularly in the current economic climate, where investors may prefer these high-yield stocks for stable cash flow.
See More
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- Strong Performance of Blue-Chip Stocks: In stark contrast to tech stocks, the Dow Jones Industrial Average rose by 260 points, or 0.5%, indicating that old-economy companies are demonstrating greater resilience during market turmoil, attracting investors seeking stability.
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- Market Performance: The Dow Jones Industrial Average rose by 2.5% and closed above 50,000 for the first time.
- Nasdaq Struggles: In contrast, the Nasdaq Composite ended the week down 1.8%, despite a strong rally on Friday.
See More
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- Job Data Expectations: The U.S. is expected to add 60,000 jobs in January, up from 50,000 in December, which could influence the Fed's monetary policy direction amidst ongoing economic uncertainty.
- Inflation Metrics Analysis: The January Consumer Price Index is projected to rise by 0.29% month-over-month and 2.5% year-over-year, showing improvement but still falling short of the Fed's 2% target, potentially affecting investor rate expectations.
- Market Reaction and Risks: Recent signs of labor market weakness, including an ADP report indicating only 22,000 new private sector jobs, may heighten expectations for further Fed rate cuts, although investors remain optimistic about economic resilience.
- Stock Market Rotation Trend: A significant rotation within the stock market is underway, with the Dow Jones Industrial Average rising over 2% this week, reflecting confidence in economic recovery, despite ongoing weakness in tech stocks.
See More
Buffett Leaves Abel with a $320 Billion Portfolio Challenge
- Massive Portfolio: Upon stepping down at the end of 2025, Buffett left Berkshire Hathaway with a marketable equity portfolio valued at approximately $320 billion and $354 billion in cash reserves, presenting new CEO Abel with significant management challenges as investors await his strategic adjustments.
- First Stock Sale: Under Abel's leadership, Berkshire disclosed the sale of 1.7 million shares of DaVita (DVA), which, while executed under a pre-existing agreement, raised concerns among investors about potential reductions in holdings, thereby impacting market confidence.
- Strong DaVita Performance: DaVita's recent earnings report revealed a 10% revenue increase and a 52% surge in adjusted earnings per share (EPS), and despite ongoing concerns regarding flu season and GLP-1 drug impacts, management's optimistic forecast of 45% EPS growth for 2026 indicates a positive outlook.
- Potential Kraft Heinz Sale: Abel appears poised to sell Berkshire's stake in Kraft Heinz (KHC), despite Buffett's previous comments on the merger's shortcomings; Abel's disapproval of the company's split plan may present an opportunity for Berkshire to divest its shares.
See More
Buffett Hands Over CEO Role to Abel in 2026
- Leadership Transition: Warren Buffett will hand over the CEO position of Berkshire Hathaway to Greg Abel in 2026, a historic shift that could bring significant changes for investors, particularly in the company's strategic direction.
- Stock Sale Expectations: Berkshire may look to sell its stake in Kraft Heinz, which has seen a 29% decline in stock price over the past five years, contrasting sharply with the S&P 500's 85% increase, highlighting the inefficacy of this investment.
- Business Restructuring: Kraft Heinz is in the process of breaking up its business to focus on sauces and grocery brands, a move aimed at unlocking value for shareholders, and Berkshire's potential exit could accelerate this process.
- Growth Investment Opportunities: Should the Kraft stock sale occur, Abel would have the opportunity to reallocate funds into growth stocks, particularly in the tech sector, which Buffett may have previously been hesitant to invest in.
See More
Analysis of High Dividend Stocks in Nasdaq-100
- Kraft Heinz Appeal: With a dividend yield exceeding 6.7%, Kraft Heinz's stock appears attractive despite a 19% decline over the past year, reflecting waning consumer interest in traditional packaged foods and potential sell-off by Berkshire Hathaway, which holds a 27.5% stake, undermining investor confidence.
- Comcast Diversification: Comcast has spun off its cable networks to focus on broadband internet, Peacock streaming, and theme parks, with theme park revenue rising nearly 22% to $2.9 billion in the latest quarter, although it faced a loss of 181,000 broadband customers, indicating challenges in its high-margin business.
- Paychex Stability: Paychex currently boasts a dividend yield close to 4.2%, despite a 30% drop in stock price over the past year; however, its total revenue, operating income, and earnings per share have all increased in the latest quarter, indicating strong demand in the small to mid-sized business sector.
- Investment Outlook: While Kraft Heinz and Paychex face stock price pressures, their high dividends attract income-seeking investors, particularly in the current economic climate, where investors may prefer these high-yield stocks for stable cash flow.
See More
Wall Street Volatility Highlights Importance of Portfolio Diversification
- Tech Stock Decline: Tech stocks have been severely impacted by recent volatility, with AMD's share price plummeting 17% as investor confidence in the enterprise software sector wanes, highlighting the risks of over-reliance on tech investments.
- Strong Performance of Blue-Chip Stocks: In stark contrast to tech stocks, the Dow Jones Industrial Average rose by 260 points, or 0.5%, indicating that old-economy companies are demonstrating greater resilience during market turmoil, attracting investors seeking stability.
- Winners Across Industries: Companies like Campbell, PepsiCo, Smuckers, and Kraft Heinz have seen their stock prices rise despite the threat of GLP-1, reflecting ongoing consumer demand and confidence in the food sector amidst market fluctuations.
- Recovery in Banks and Industrials: Recent gains in bank stocks and industrials such as Honeywell, Dover, and Emerson Electric suggest that investors believe these firms will benefit from efficiency improvements brought by artificial intelligence, enhancing their investment appeal.
See More
