Today
I made a buy of 50 Heinz shares. The total amount was USD 2.926,50 and will increase my dividend income by around USD 100. It's my
first position ever in Heinz. I avoided the company in the past because of the
high debt ratios. For the time being, Heinz has USD 5.04 billion debt at a
twelve trailing months EBITDA of 2.02. I thought that this ratio is too high
for a slow growing business. But as you could see, I was wrong not to buy the
stock when the yield was above 4 percent. Heinz has a strong market position
and well-known brands. The company is traded near All-Time-Highs. The company
has also USD 1.01 billion in cash, so the net-debt to EBITDA ratio is lower. I
plan to increase this position over the next decades.
Heinz is definitely no stock to get quick
rich. The yield of 3.5 percent will not boost your dividend income and I don't
expect bigger dividend hikes over the next few years due to the high debt and
slow growth of around 3-10 percent. What do you think about the company and
their business developments?
