The picture says it all 😀
Yesterday I bought Kraft Heinz Co 20 share for 32,85$ paying 667$. In L/T it isa viable business. Share price decline by half due to perfect storm (dividend decrease and net loss due to write-offs). Adjusted P/E is below 10. Dividend yield is 3,4% (after -30% tax). Leverage was at x3,8 when I bought 10 shares of KHC year ago. Debt remained at similar level so did the leverage. Im not a regular DGI guy. I can take dividend cuts. Its normal in Baltics. As long as there is a L/T perspective for the company.
This purchase for lower then 0.7k$ will generate us 22,4$ (0,4$×4×20-30%) annual income and will almost compensate lost 30$ dividends from divested INTC and PG and I still have almost 1k$ remaining at my hands 😉 I know this is a gamble, but I agree in general to what KHC is doing – deleveraging. More companies should follow as borrowing cost has increased and you cannot pay more dividends, + buyback share for amount more then Net income eating up equity and increasing financial debts forever. One day life will hit you back and company will have issues with growth for decades to come or worse.