Conagra Brands, Inc.

(New York Stock Exchange)
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Very Bearish -75

Conagra Brands Inc's Dividend Analysis

Dividend AI-generated analysis

πŸ“… Conagra Brands Inc announced a $0.18 quarterly cash dividend payable on Dec. 3, 2026, to shareholders of record before Nov. 5, 2026.

πŸ’° The company currently trades with a 12-month trailing and forward dividend yield of 7.98%, significantly higher than the broader market average.

⚠️ GuruFocus has identified seven warning signs for CAG, citing tension between its attractive yield and deteriorating financial fundamentals.

πŸ“‰ Over the past three years, Conagra Brands Inc's revenue has declined by an average of 2.70% per year, underperforming approximately 72.53% of global competitors.

πŸ“‰ Earnings per share have contracted sharply, with a 3-year average decline of 53.40% per year, placing the company in the bottom quartile of global peers.

πŸ“‰ The five-year EBITDA growth rate is -29.40%, indicating severe compression in operating cash flow generation relative to industry standards.

πŸ’Έ As of Aug. 31, 2026, Conagra Brands Inc's dividend payout ratio is 3.44, meaning the company is distributing more than three times its reported earnings.

πŸ“Š GuruFocus ranks Conagra Brands Inc profitability at 6 out of 10 and growth at 6 out of 10 as of Aug. 31, 2026, reflecting fair but not robust performance.

πŸ“ˆ The five-year yield on cost is approximately 10.48%, offering enhanced effective returns for investors who purchased shares five years ago despite recent declines.

🏭 Conagra Brands Inc operates primarily in the US retail grocery and mass merchandise channels, with a portfolio including Marie Callender's, Slim Jim, Hunt's, and Vlasic.

Bullish Signals
  • Conagra Brands Inc has maintained a consistent dividend payment record since 1986, demonstrating a four-decade commitment to returning cash to shareholders.
  • The company offers a high 12-month trailing and forward dividend yield of 7.98%, which is attractive for income-focused investors seeking current cash flow.
Risk Factors
  • Conagra Brands Inc's dividend payout ratio is 3.44 as of Aug. 31, 2026, indicating that dividends exceed reported earnings and raising sustainability concerns.
  • Revenue has decreased by approximately 2.70% per year on average over the past three years, underperforming roughly 72.53% of global competitors.
  • Earnings per share have declined by an average of 53.40% per year over the past three years, significantly underperforming approximately 94.61% of global peers.
  • The five-year EBITDA growth rate is -29.40%, showing a severe contraction in operating profitability that pressures the ability to fund future dividends.
Full Analysis
Conagra Brands Inc (NYSE:CAG) recently announced a quarterly cash dividend of $0.18 per share, with an ex-dividend date of November 5, 2026, and a payment date of December 3, 2026. The company maintains a consistent dividend payment record dating back to 1986, distributing payments on a quarterly basis to provide income investors with a predictable cash flow stream. As of the reporting period ending August 31, 2026, Conagra Brands Inc offers a 12-month trailing and forward dividend yield of 7.98%, which is notably high relative to the broader market. However, this elevated yield coincides with significant financial headwinds, including a dividend payout ratio of 3.44, indicating that current dividends exceed reported earnings. The company's fundamental performance metrics show deterioration over recent periods. Over the past three years, annual revenue has decreased by approximately 2.70% per year, while earnings per share (EPS) have declined by an average of 53.40% annually. Additionally, the five-year EBITDA growth rate stands at -29.40%, reflecting substantial contraction in operating profitability compared to global competitors. Despite a four-decade history of dividend payments, the sustainability of Conagra Brands Inc's distribution is under scrutiny due to its weak growth trajectory and high payout ratio. GuruFocus analysis highlights that while the company has reported net profit in 9 out of the past 10 years, the combination of declining top-line revenue, sharply lower EPS, and a payout ratio significantly above 1.0 suggests investors should treat the high yield with caution.