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My Heinz (HNZ) Stock Trade Report | A Solid Dividend Growth Stock In My Portfolio

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?

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