This Top Dividend Stock Is Oversold and Yielding 4.3%

Kraft Heinz (NASDAQ:KHC) fell into oversold territory last week as the company's latest earnings report failed to impress investors. Although the company beat expectations for the period, sales were down from the previous year and concerns about tightening margins amid inflation left investors with an underwhelming outlook for the stock.

Revenue of $6.6 billion for the period ending June 26 declined slightly by 0.5% year over year. The company generated growth outside of the U.S. but in its home market, where its brings in the bulk of its revenue, sales were down by 3.6%.

For dividend investors, however, this could be a great time to buy the stock on the dip as there's little reason to doubt that Kraft can continue making regular payments to shareholders. During the past six months, the company generated a solid $2 billion in cash from its day-to-day operating activities. That's plenty of room for the company to make payments on its debt and pay its dividend as its payouts over the past two quarters have totaled $979 million.

Despite the challenges ahead with rising prices likely chipping away at its bottom line, Kraft still looks to be a good dividend stock to own. It declared another quarterly dividend of $0.40, which at a share price of around $37, puts its yield at 4.3% -- well above the S&P 500 average of less than 1.4%. Kraft currently trades at a forward price-to-earnings multiple of 14, cheaper than General Mills (NYSE:GIS), which trades at close to 16 times its future earnings.