Kraft Heinz (KHC) Dividend Calculator
Kraft Heinz is a middle-of-the-road dividend payer in the Consumer Staples sector, with a reference dividend yield of 4.7% and five-year dividend growth of about 2.0% a year. Below is what $10,000 could grow to with dividends reinvested, how much income it could pay, and how those dividends are taxed in 2026.
Figures are reference values compiled in early 2026, not live quotes. Yields move every day with the share price; check the current yield before you invest. Educational only, not investment advice.
Reference yield
4.7%
#6 of 47 stocks we track
5-yr dividend growth
2.0%/yr
#44 of 47
Year-1 income on $10,000
$470
$118 a quarter
Dividend doubles in
~36 yrs
Rule of 72 at current growth
How $10,000 in KHC could grow
The model assumes the yield stays at 4.7%, so the share price and the dividend per share both grow at 2.0% a year. With DRIP, each year's dividends buy more shares; without it, they are paid to you as cash. It ignores taxes, fees and market swings, which in reality are large.
| Years | Value with DRIP | Annual income (DRIP) | Value without DRIP | Cash dividends collected |
|---|---|---|---|---|
| 10 | $19,296 | $907 | $12,190 | $5,146 |
| 20 | $37,234 | $1,750 | $14,859 | $11,420 |
| 30 | $71,846 | $3,377 | $18,114 | $19,067 |
After 30 years, reinvesting ends about $34,666 ahead of taking the cash and leaving it uninvested, and the position would pay roughly $3,377 a year in dividends. Your yield on the original $10,000 (yield on cost) would rise from 4.7% to about 5.7% after 10 years and 7.0% after 20 years from dividend growth alone, before counting reinvested shares.
What drives the result for KHC
KHC combines a 4.7% yield with 2.0% dividend growth, so both current income and growth contribute to the projection. In this model the total annual return is roughly yield plus growth: about 6.8% a year.
Dividend growth of 2.0% is below the roughly 2%โ3% long-run US inflation rate, so the purchasing power of each dividend could shrink even as the dollar amount rises.
The Consumer Staples stocks we track average a 3.4% yield. Sector matters: utilities and consumer staples tend to pay steady dividends, while technology and industrial companies often pay less today but have raised payouts faster. None of this is guaranteed; companies can and do cut dividends.
KHC vs. other Consumer Staples dividend stocks
| Stock | Reference yield | 5-yr dividend growth | 30-yr DRIP value of $10k |
|---|---|---|---|
| Kraft Heinz (KHC) | 4.7% | 2.0% | $71,846 |
| Altria Group (MO) | 9.0% | 3.5% | $372,396 |
| Philip Morris International (PM) | 5.3% | 4.2% | $161,764 |
| Coca-Cola (KO) | 3.1% | 3.0% | $60,656 |
| PepsiCo (PEP) | 2.7% | 6.0% | $127,729 |
| Procter & Gamble (PG) | 2.4% | 5.0% | $88,040 |
| Target (TGT) | 3.1% | 9.0% | $331,554 |
| Walmart (WMT) | 1.5% | 2.0% | $28,313 |
| Costco (COST) | 0.8% | 10.0% | $221,614 |
| Kimberly-Clark (KMB) | 3.4% | 2.5% | $57,192 |
| Colgate-Palmolive (CL) | 2.4% | 4.0% | $66,069 |
| General Mills (GIS) | 3.3% | 4.0% | $85,903 |
| Archer-Daniels-Midland (ADM) | 2.9% | 5.0% | $101,892 |
Taxes on KHC dividends in 2026
In a taxable brokerage account, dividends are taxed in the year they're paid, even when DRIP reinvests them. Most dividends from US companies like Kraft Heinz are qualified dividends if you hold the shares for more than 60 days during the 121-day window around the ex-dividend date. For 2026 they're taxed at 0% up to $49,450 of taxable income ($98,900 married filing jointly), 15% up to $545,500 ($613,700), and 20% above that, plus the 3.8% net investment income tax at higher incomes.
Example: $10,000 in KHC pays about $470 in the first year. In the 15% bracket the federal tax is about $71, owed even if every dollar was reinvested. Each reinvestment also adds to your cost basis, so keep records (your broker usually tracks this) to avoid paying tax twice when you sell.
Holding KHC in a traditional IRA or 401(k) defers the tax until withdrawal; in a Roth account, qualified withdrawals are tax-free. See our DRIP guide and Roth vs traditional IRA for more.
Run your own numbers for KHC
The calculator starts with KHC's reference yield and growth rate. Change the amount, time horizon, yield and growth to match today's price and your own assumptions.
Dividend Reinvestment Lab
Dividend Reinvestment (DRIP) Calculator
Model dividend reinvestment vs cash payouts in a Bloomberg-terminal dark mode interface. See the compounding curve, the cost of waiting, and your projected passive income.
Cost of Waiting
$192,300
Difference between with-DRIP and without-DRIP portfolios at year 20.
Portfolio Snapshot
With DRIP: $504,559
Without DRIP: $312,259
Snowball compounding modeled annually.
Snowball Chart
Monthly Passive Income
Year 10
$621
After-tax dividends / month
Year 20
$1,680
After-tax dividends / month
Year 30
$1,680
After-tax dividends / month
KHC dividend FAQ
How much do I need to invest in KHC to earn $1,000 a year in dividends?
At the reference yield of 4.7%, about $21,277. If Kraft Heinz keeps growing its dividend around 2.0% a year, the same position would pay more each year without adding money. The actual amount depends on the yield when you buy.
Should I reinvest KHC dividends (DRIP)?
Reinvesting compounds your share count: in this model, $10,000 grows to about $71,846 over 30 years with DRIP versus $37,181 (shares plus dividends collected) without it. Taking the cash makes sense if you need the income now, want to rebalance into other holdings, or already hold too much of one stock.
Is KHC a good dividend stock?
This page doesn't make recommendations. To judge any dividend stock, look at the payout ratio (dividends vs. earnings and free cash flow), debt levels, how the dividend held up in past recessions, and whether the business can keep growing. A single stock is riskier than a diversified fund, whatever its yield.
Are KHC dividends taxed if I reinvest them?
Yes, in a taxable brokerage account. Reinvested dividends are taxed the same year, usually as qualified dividends at 0%, 15% or 20% for 2026 if you meet the holding period. In a traditional IRA or 401(k) they aren't taxed until you withdraw, and in a Roth account qualified withdrawals are tax-free.
About this data: yields and five-year dividend growth rates are reference figures compiled in early 2026 and are not updated in real time. Past dividend growth does not guarantee future dividends. This page is educational and is not a recommendation to buy or sell KHC.
Sources for tax rules: IRS Publication 550 and IRS Topic 404 (Dividends). Investor education: Investor.gov.
Browse all 47 dividend stock calculators or use the general DRIP calculator.