Terrible earnings and the dividend cut really speaks to the struggles that brand name companies are having.
I think it's interesting that these long term safe haven names don't seem so safe anymore. You used to be able to count on these guys to be safe dividend payers in good times and bad but it's been a struggle lately. Of course, KHC is more leveraged than a lot of the others but it's still an interesting strategy.
The other part that is worrisome is this from the earnings report "the Company recorded non-cash impairment charges of $15.4 billion to lower the carrying amount of goodwill in certain reporting units, primarily U.S. Refrigerated and Canada Retail, and certain intangible assets, primarily the Kraft and Oscar Mayer trademarks."
That's a big impairment charge to some big brand names.
I wonder how Buffet feels about this unless he's just taking it private eventually.
Submitted February 21, 2019 at 06:49PM by timeinthemarket https://ift.tt/2ICY14u
