Still, the fact that the payout has not increased in seven years is something income investors cannot easily overlook. The bigger question is whether the company is finally getting close to raising the dividend or if $0.40 is still the level it can comfortably afford. The Kraft Heinz Company (NASDAQ:KHC) cut its quarterly dividend by about 36% in February 2019, taking it from $0.625 to $0.40 per share.
It has stayed there ever since. The latest dividend announcement keeps the payment unchanged at $0.40, giving shareholders an annual payout of $1.60 per share. The strongest argument in favor of Kraft Heinz's dividend is its cash flow.
During the first half of 2026, the company generated $2.1 billion in operating cash flow, up 8.2% from the same period last year. Free cash flow also increased 10.3% to $1.7 billion. Kraft Heinz returned around $0.9 billion to shareholders through dividends during the period.
This suggests that the company is not struggling to cover its current dividend. Instead, management appears to be taking a careful approach to how it uses its cash. Kraft Heinz plans to invest about $700 million in 2026 across marketing, research and development, and new products.
The goal is to strengthen its brands and improve the business. If those investments help bring sales volumes back up and improve margins, the company could have more flexibility to increase the dividend later. There has also been some improvement in the company's 2026 outlook.
Kraft Heinz now expects organic net sales to decline between 0.5% and 2.0%, compared with its previous forecast of a 1.5% to 3.5% decline. Adjusted earnings per share are expected to range from $2.03 to $2.09.At the midpoint of that guidance, the $1.60 annual dividend represents a payout ratio of roughly 77%. That is manageable, but it does not leave a huge amount of room for a meaningful increase if earnings remain under pressure.
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