Best Stock to Buy Right Now: Kraft Heinz vs. Hershey

Core Viewpoint - The consumer staples sector presents potential investment opportunities in Kraft Heinz (KHC) and Hershey (HSY), both of which are currently trading significantly below their three-year highs, with Kraft Heinz down 20% and Hershey down 25% [1] Dividend Comparison - Kraft Heinz offers a higher dividend yield of 4.5%, compared to Hershey's 2.7%, which is still above the S&P 500 average of 1.2% and the average yield of 2.6% for consumer staples [2] - Hershey has a consistent dividend growth streak of 15 years, while Kraft Heinz's dividend has remained flat since a cut prior to 2020, indicating Hershey's stronger dividend backing [2] Investor Sentiment on Kraft Heinz - Investors are skeptical about Kraft Heinz due to its challenging history post-merger, where cost-cutting strategies did not yield the expected growth, leading to a focus on innovation and brand building [4][5] - Kraft Heinz's key brands in North America experienced a 2.4% drop in organic sales in Q2 2024, contributing to investor caution [4] Investor Sentiment on Hershey - Hershey's recent distribution system upgrade has temporarily affected earnings due to inventory adjustments, but this issue is not expected to persist [6] - Seasonal demand fluctuations and rising cocoa prices present challenges, but Hershey has a history of managing commodity price changes effectively [7][8] Investment Recommendation - While Kraft Heinz may attract income-focused investors due to its higher yield, its underlying issues may hinder long-term growth, making Hershey a more attractive investment option despite its current challenges [9][10]