Summary
- Kraft Heinz's annual/Q4 fell far short of expectations.
- The SEC has become involved in the company's accounting policies.
- The company made the mother of all transgressions for a DGI investor - they cut the dividend.
A dividend cut hath come - what to do
In this article, I will take a look at the Kraft-Heinz Company (KHC). Being that I am long KHC (albeit at a mere 0.2% of my portfolio), the dividend cut directly affects my ability to live my life as I please, because I actually use the dividends from Kraft Heinz Company to buy Kraft Heinz Company Ketchup!
Not only did the company cut the dividend, or take a huge write-off of $15.4B, but the SEC is going to be taking a look at the company's books. As far as signals for dividend stocks go, this goes into a vermillion territory.
I will explain why I hold onto my small share of KHC holdings, and I will provide my own guidance/opinion as to what a dividend investor should look for, when and if they consider increasing their exposure towards KHC - which I intend to do, provided the price is right.
Kraft Heinz's earnings call - positives are scarce
The company's Q4/2018 earnings call was a bucket of cold water in the face of any dividend investor or KHC investor. They'd of course love for us to focus on certain things but the fact is there was a list of negative news that needs to be taken in and processed with care.
