Consumer Stocks for Retirement Investors #1: Kraft Heinz Co (KHC)
There’s plenty of profit in simplicity, and when it comes to consumer stocks, there’s nothing simpler than prepackaged food. Selling basic items like salad dressing and ketchup provides plenty of stable revenues in good times and in bad, which is why Kraft Heinz Co (NASDAQ:KHC) is quickly becoming a monster of a company.
Since its merger, KHC has plowed deep into revitalizing its brands and cutting excess costs. This has only helped boost pre-merger profit and cash flow at the food maker.
Moreover, KHC has been on the hunt for other rivals to add to its mix. It recently tried to buy Unilever plc (ADR) (NYSE:UL). That failed bid was an effort to get a hefty dose of consumer products under its umbrella. That has given way to speculation that Colgate-Palmolive Company (NYSE:CL) could be the next on KHC’s hit list. If successful, Kraft Heinz will be a juggernaut in the consumer products space and continue to see rising top-line revenue growth.
Selling basics is another win for investors as well. Namely, the company’s great 2.84% dividend yield. That yield has continued to rise on the back of KHC’s simple business model.
In the end, for investors looking for individual consumer stocks, KHC is a perfect example of what they should be looking for.