Key insights
- The author highlights undervalued, dividend-paying consumer staple stocks like Kraft Heinz, General Mills, and Conagra, trading near multi-year lows. They question the market's focus on high-growth, zero-revenue tech stocks while established companies with consistent earnings and dividends are overlooked. This suggests a potential rotation towards value stocks, but the overall market impact is limited.
Tinker on this for a second,
The Kraft Heinz Company was founded in 1879. The stock is down near its all-time low. ($KHC) pays a fat 7% dividend.
General Mills, Inc was founded in 1866. Trade near its 15-year low. ( $GIS) pays a 7% dividend yield.
McCormick & Company was founded in 1889. The stock is trading near its 10-year low. ( $MKC) pays a $3.5% dividend yield.
Conagra Brands, Inc was founded in 1919. The stock is trading past its 32-year low. The last time ( $CAG) was this cheap was in 1994. Dividend yield ( 9.56%)
The Campbell's Soup was founded in 1869. The stock is trading near its 23-year lows. ( $CPB) pays a 7% dividend yield.
Flowers Foods, Inc., was founded in 1919, and its stock is trading near its 20-year low. ( FLO) pays an 11% dividend yield.
Great companies ( for the majority), staples consumers' products ( food, who doesn't eat?), earnings, dividend yield, legacy, enshrined in the culture...etc.
Why are some people chasing overvalued Quantum computing/AI stocks with zero revenue?