Conagra Brands

CAG

Market cap $7.93B

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

The consumer staples sector has gained 1.5% over the past year, compared to a 17% increase for the S&P 500 index. There was an interesting performance reversal that occurred over this past year.

Investors with an appetite for a good comeback story may want to look at consumer staples stocks. With the Consumer Staples Select Sector SPDR Fund NYSEARCA: XLP almost flat in 2025, it would not take much effort to find beaten-down names in the sector.

Conagra Brands remains out of favor on Wall Street, but the successful execution of its recently announced AI-based turnaround plan could fuel a recovery for the packaged foods company. If interest rates continue to decline in 2026, Realty Income, a REIT with a long track record of dividend growth, could experience a significant re-rating to the upside.

This article is part of our monthly series where we highlight five large-cap, relatively safe, dividend-paying companies offering significant discounts to their historical norms. We go over our filtering process to select just five conservative DGI stocks from more than 7,500 companies that are traded on U.S. exchanges, including OTC networks. In addition to the primary list that yields 4.3%, we present two other groups of five DGI stocks each, from moderate to high yields of up to 8%.

The Investment Committee detail their top stocks to watch for the second half of the trading session.

During times of turbulence and uncertainty in the markets, many investors turn to dividend-yielding stocks. These are often companies that have high free cash flows and reward shareholders with a high dividend payout.

Conagra Brands Inc (NYSE: CAG) reported mixed results for the second quarter on Friday.

Conagra Brands is an 8% yielding stock that looks dangerous but may be deeply misunderstood. I discuss why the worst year could already be in the rearview mirror. I also explore the single risk that decides whether this is a bargain or a value trap.

CAG beat Q2 EPS estimates, but sales fell 6.8% and organic net sales dropped 3% as volumes declined amid a tough consumer backdrop.