ConAgra Is A Buy Because Of Its Dividend

Eric Novinson283 FollowersFollow5ShareSavePlay(12min)Comment(1)SummaryConAgra (CAG) offers a 9% yield, with its stock trading near 2008 crisis levels, primarily due to margin pressure and recent brand divestitures. CAG's Q3 2026 organic revenue rose 2.4%, and management expects stable operating margins and improved pricing power into fiscal 2027. Dividend sustainability is supported by inventory reduction and recent price increases, with 86% of free cash flow used for dividends in the first three quarters. CAG is fairly valued, with limited upside, but remains attractive for income investors given its high yield and resilient consumer staples positioning. jetcityimage/iStock Editorial via Getty Images It might be time to buy ConAgra (CAG). This company currently has a 9% yield because its stock price has fallen so much. Its stock price is now near levels last seen during the 2008This article was written byEric Novinson283 FollowersFollowI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.