KHC
📉 Kraft Heinz serves as a stark example of how markets anticipate and react to dividend cuts; its stock price began falling even before the official 2019 reduction.
💥 The dividend cut significantly exacerbated the stock’s decline, leading to a drop of approximately 70% from its previous highs.
⏳ Years after the cut, the stock price has failed to recover substantially, underscoring the long-lasting negative impact such policy changes can have on shareholder value.
@ElClubDeInversion:
“Another example from a very, very well-known company, which is Kraft. Here we see how the company decided to cut dividends, we’re seeing it here in 2019. And well, 2019 here, but the markets had already, let’s say, discounted, that’s the word, they had already anticipated that this was going to happen due to the numbers the company was carrying. So the markets already knew that this cut was going to occur, so the price had already started to fall. And we see how the fall was accentuated even more once the dividends were cut, and since then it hasn’t recovered. Well, from the highs, a drop of 70%, which is quite notorious.”
Watch the exact part of the video where @ElClubDeInversion talks about Kraft Heinz here:
Watch the video on YouTube
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