Wednesday, March 25, 2015
Thank you KRAFT!!!
As many already know Kraft (KRFT) is merging with Heinz to become the Kraft Heinz Company. The new company will become the third-largest food company in North America. The best part of the news aside from a jump in shareholder value is that Warren Buffett is involved in the deal.
Kraft shareholders will receive a 49% stake in the new company and will also receive a special $16.50 dividend. KRFT is currently trading up about $23 a share from about $61 to over $84. This represents a 37% increase over yesterday's close. This obviously is the pre-dividend price.
Since I currently own 75 shares, my special dividend amount will be $1237.50.
While this is only a one time dividend, it comes at an excellent time considering my yearly dividends were cut buy $632 thanks to ESV. It is also nice to have good news while I continue to buy energy companies and weather the storm on that side of my portfolio.