How Conagra Brands' (CAG) Dividend Policy Strengthens its Appeal to Long-Term Investors

Conagra Brands, Inc. (NYSE:CAG) is included among the 10 Highest Dividend-Paying Stocks to Buy in the S&P 500.

Conagra Brands, Inc. (NYSE:CAG) is a packaged foods company from Chicago, Illinois that sells its products for retail and food service under a portfolio of popular brand names such as Hunt’s, Orville Redenbacher’s, and Slim Jim. It owns Hunt’s tomato sauce, Pam cooking spray, and Hebrew National hot dogs.

While consumer staples are generally a steady industry, Conagra Brands, Inc. (NYSE:CAG) has had its issues, seeing its revenue fall for two straight fiscal years. The stock has seen analysts cut targets after the company disappointed on both revenue and earnings in its fiscal fourth quarter. Fiscal 2026 guidance expects organic sales to be flat and profits to miss market expectations. Based on the midpoint of net income guidance, the company’s payout ratio would be 79%, which is on the high side, but it might be sustainable if Conagra can increase its margins.

Having said that, the dividend history of Conagra Brands, Inc. (NYSE:CAG) makes it an excellent option for income investors. The company has been paying successive quarterly dividends since January 1976, and is currently paying a quarterly dividend of $0.35 per share. The stock has a dividend yield of 7.70% as of Sep 27.

While we acknowledge the potential of CAG as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you’re looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.

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Disclosure: None.