Kraft Heinz Should Be An Excellent Investment 2015-2020

Right now, shares of Kraft-Heinz trade at $71 per share. The dividend yield sits at 3%. For a food conglomerate that has spent the past fifteen years growing revenues at 3%, you might ordinarily expect to generate 8% long-term returns according to the following assumptions: (1) you pay fair value for the company, (2) the 3% annual revenue growth translates into 5% earnings per share growth, and (3) you collect the dividends as cash rather than choose to reinvest.

What makes Kraft-Heinz especially intriguing right now is that second element: how revenue growth translates into earnings growth.

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