Investing

While Inflation Surges Higher, 7 Warren Buffett Dividend Stocks Are Solid Safe Havens

Kraft Heinz

Even in tough times, everyone has to eat, and this company stands to benefit. Kraft-Heinz Co. (NASDAQ: KHC) was formed six years ago via the merger of H.J. Heinz and Kraft Foods. The company is a leading global food company, with $29 billion of annual revenues generated by well-known brands. It is the third-largest food and beverage manufacturer in North America, deriving 76% of revenues from that market and 24% internationally.

The company’s brands include not only Kraft and Heinz but also Oscar Meyer, Maxwell House, Capri Sun, Classico, Jell-O, Kool-Aid, Lunchables, Ore-Ida, Oscar Mayer, Philadelphia, Planters, Plasmon, Quero, Weight Watchers Smart Ones and Velveeta.

Buffett holds a massive position of this stock in the Berkshire Hathaway portfolio of 325 million shares.

Shareholders receive a 3.68% dividend. The $48 BofA Securities price target is well above the $40.79 consensus target, which is less than the $43.50 where Kraft Heinz stock closed on Wednesday.

Kroger

This grocery chain giant is always a solid idea when the going gets rough, as people tend to go out less to eat. Kroger Co. (NYSE: KR) operates as a retailer in the United States. It operates combination food and drug stores, multi-department stores, marketplace stores, and price impact warehouses.

Its food and drug stores offer natural food and organic sections, pharmacies, general merchandise, pet centers, fresh seafood and organic produce. Its multi-department stores provide apparel, home fashion and furnishings, outdoor living, electronics, automotive products and toys.

The company’s marketplace stores offer full-service grocery, pharmacy, health and beauty care, and perishable goods, as well as general merchandise, including apparel, home goods, and toys. The price impact warehouse stores provide grocery and health and beauty care items, as well as meat, dairy, baked goods and fresh produce items.

The company also manufactures and processes food products for sale in its supermarkets, and it sells fuel through 1,596 fuel centers. As of January 30, 2021, the company operated 2,742 retail food stores under various banner names in 35 states and the District of Columbia, as well as an online retail store.

Shareholders receive a 1.52% dividend. The Kroger stock price target at BofA Securities is $75. The consensus target is a much lower $54.92. The last trade on Wednesday was reported at $54.33.

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