Conagra Brands

CAG

Market cap $6.35B

Two beaten-down names paying very attractive dividends are moving from the watch list onto our to-buy list. Both face current headwinds, but their underlying business models remain competitively positioned, which should help deliver long-term total return outperformance. However, they do face very real headwinds and risks that I detail in this article.

Conagra Brands, Inc. (CAG) faces persistent operational and strategic challenges, with shares down 22% YTD despite a sector rally and a new CEO recently appointed. CAG's 10.4% dividend yield appears covered by operating cash flow, but long-term safety is questionable without a credible growth or innovation strategy. Organic growth remains inconsistent, with recent gains driven by price/mix rather than volume, and margin compression persists amid commodity inflation and tariffs.

I upgrade Conagra Brands to Strong Buy, backed by an irrationally high margin of safety and significant turnaround potential. CAG's narrowed guidance, robust FCF conversion (~105%), and accelerated net debt reduction ($800M) reinforce its financial position in a tough macro setting. Portfolio optimization, Project Catalyst, and a new CEO from SJM position CAG for enhanced operational efficiency and strategic adaptation.

In consumer goods, the highest yields often signal distress, so the strongest choices are companies whose cash flow clearly supports their payouts. Philip Morris and British American Tobacco pair high yields with credible growth in alternative products, for the strongest blend of income and business momentum.

Meat Snacks, Seeds, Sweet & Salty Offerings Highlight Dynamic Portfolio CHICAGO, May 18, 2026 /PRNewswire/ -- Conagra Brands, Inc. (NYSE: CAG), one of North America's leading branded food companies, is prepping a collection of satisfying snacks and tempting sweets for the bright lights of Las Vegas and the National Confectioners Association's 2026 Sweets & Snacks Expo. Meat snacks, sweet treats, and salty snacks comprise the company's $3.3 billion1  snacks portfolio, highlighted by several industry-leading brands.

Conagra has a huge 9.9% dividend yield, while General Mills' yield is 7.2%. Dividend investors should tread with caution with one of these food makers, but the other could be a long-term opportunity.

I highlight the top ten ReFa/Ro dividend dogs for April 2026, all offering dividends from $1,000 invested that exceed their share price. Analyst 1-year targets project 23.15% to 71.69% net gains for these high-yield stocks by April 2027, with an average estimated gain of 46.15%. Five lowest-priced ReFa/Ro dogs are expected to outperform, delivering 21.96% higher gains versus the full top ten, per analyst targets.

Let's capitalize on analyst incompetence—and bank yields up to 18.3%, with upside to boot!

AVNS, BKR and CAG have been added to the Zacks Rank #5 (Strong Sell) List on May 15th, 2026.

Conagra Brands' Q3 adjusted gross margin slides 112 bps to 23.7%, even as organic sales return to growth, showing costs still bite.