Thursday, May 24, 2012

Heinz Increases Dividend

This morning H.J. Heinz (HNZ) raised its dividend 7.29% from $.48 to $.515 per quarter.  HNZ is closing in on becoming a dividend contender, the streak now stands at 9 years.  The company also released its Q4 earnings which showcases its focus on emerging markets.  HNZ forecasts emerging markets to contribute 25% of sales in 2013.  While the company is famous for ketchup they produce many other food products including Classico spaghetti sauce and Bagel Bites.  HNZ uses an acquisition strategy to penetrate markets such as Brazil and China beyond ketchup.

Yet another strong dividend increase, 2012 is exceeding my expectations.


  1. I own HNZ as well and will be looking to add more shares in the future. I believe their global exposure will continue to increase providing higher earnings and more future dividend increases.

    Last year's dividend increase was a raise of 6.7% and 7.1% from the previous year so this raise came in just as expected. If they average a raise of 7% for 10 years then your YOC would double in that time. They don't have a long streak yet but as you mentioned they are almost at their 10th year of consecutive increases.

    I love getting paid dividends and I also love to see the yearly dividend increases continue at rates above inflation.

    1. If Heinz can maintain 7% raises every year I would be happy. I see them being an excellent dividend paying stock. I ate at Wendy's last week and noticed they came out with a new ketchup tray which replaces packets. The new design can be used for dipping or squeezing. Very creative!

      Heinz needs to convince McDonald's to use their ketchup, it certainly does taste better. That would be an awesome source of revenue.