With Treasurys yielding less than 2%, countless investors are looking for yield elsewhere. Trader Brian Kelly thinks he's found it, here.
He’s a buyer of Heinz for its 3.5% dividend yield.
Of course plenty of stocks offer better yields that Treasurys, but Kelly likes Heinz for the strength in of its business – and isn’t worried about its modest revenue miss.
For the period ended April 29, revenue climbed 6 percent to $3.05 billion from $2.89 billion. But the results missed Wall Street's forecast of $3.07 billion.
Kelly also likes that Heinz has increased their dividend every year since 2002. Even during the downturn in 2008. This week Heinz announced that it is raising its annual dividend by 7.3 percent to $2.06 per share.
And he likes the metrics.
“They have a steady earnings flow – they’re managing their business well, they’re able to pass along some price increase and costs of tomatoes have come down.”