Jim Cramer Notes Conagra Lacks the Growth Investors Should Seek

Conagra Brands, Inc. (NYSE:CAG) is one of the stocks Jim Cramer shared his opinions on. Inquiring about the stock, a caller noted the company’s upcoming earnings report, recent decline in share price, and attractive dividend. Cramer commented:

“No, you see, we want growth in stocks. We don’t want dividends, particularly that are that high, because maybe something’s wrong. We like to buy stocks for growth. That’s really the only elixir that will protect you from inflation and will protect…. your portfolio from underperforming. Just pure growth, and Conagra doesn’t have it.”

Conagra Brands, Inc. (NYSE:CAG) produces and markets packaged food products across retail and foodservice channels. Its portfolio includes well-known brands such as Slim Jim, Marie Callender’s, Duncan Hines, Healthy Choice, Birds Eye, Reddi-wip, and BOOMCHICKAPOP. During a lightning round in one of July episodes, a caller asked about the stock and Cramer responded:

“Very tough, very tough situation. Conagra’s got 7% inflation. They got problem with tin cans. They can’t, it’s killing them… The margins aren’t that good. The brands aren’t enabling them to be able to take any price. I have to tell you, the one thing that was important was that, on the conference call, they did say that they think they have no problem paying the dividend. A company that has to answer about whether it has a problem paying the dividend or not is a company that I say [don’t buy, don’t buy, don’t buy].”

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Disclosure: None. This article is originally published at Insider Monkey.