Q: Can I ask for an updated view of KPT.
5i Research Answer:
Not much is new here. KPT reports March 5. Following a loss in 2023, it should be profitable when 2024 numbers are out. Kroger is exploring the possibility of a new tissue plant. KPT trades for its dividend, and is cheap, but the dividend has never been raised. There is some size risk here, and not a lot of growth. The last quarter was at least decent, with a beat on earnings and 1% sales growth. While the 8% yield is enticing, we would not give it a strong endoresment. We need to see at least some dividend growth.