If You Like Conagra's Dividend But Not Its Business, You'll Love General Mills' Dividend and Its Business

By Reuben Gregg Brewer – Apr 1, 2026 at 8:15PM ESTKey PointsConagra is a large consumer staples company with a collection of brands that aren't industry leaders.General Mills is a large food maker that has long focused on owning the best brands.The big draw for Conagra's (CAG 1.21%) stock today is its ultra-high 8.9% dividend yield. However, the yield is that high for a very good reason. And income investors may want to temper their enthusiasm just a little bit. Here's why General Mills (GIS 0.03%) and its 6.5% yield could be a better option if you are looking for a high-yield consumer staples stock. The problems with Conagra Conagra's recent business performance has been fairly weak, with organic sales down 3% in its most recent quarter. The food maker also chose to write down the value of some of its brands, which is not a sign of business strength. From a big-picture perspective, Conagra owns many second-tier brands. While the company's adjusted earnings cover its dividend, the stock's yield is high for a reason. Image source: Getty Images. General Mills isn't executing particularly well right now either, which is why its yield is a lofty 6.5%. Organic sales fell 3% in its most recent quarter, too. However, General Mills has long focused on owning industry-leading brands, a fact that was highlighted when it bought Blue Buffalo in 2018. Quality over quantity at General Mills At the time, Wall Street thought General Mills was overpaying for Blue Buffalo. General Mills countered that it was buying the leading healthy pet food brand and that growth would be robust. General Mills' focus on quality proved a smashing success. The company has been making additional changes to its portfolio, recently exiting the yogurt business while it continues to expand its high-end line of pet food products. ExpandNYSE: GISGeneral MillsToday's Change(-0.03%) $-0.01Current Price$37.21Key Data PointsMarket Cap$20BDay's Range$36.57 - $37.4152wk Range$35.63 - $62.61Volume8.7MAvg Vol9.1MGross Margin33.05%Dividend Yield6.53% Basically, it is reshaping its portfolio to better align with consumer preferences. And it is doing so with a focus on being the industry leader in the consumer staples sectors in which it operates. Having paid dividends for more than 125 years, this is a long and successful approach. Investors are clearly worried about the business, given the current headwinds in the packaged food industry, including cost-cutting among consumers and the increasing importance of healthier food options. However, General Mills' track record suggests it will adjust and, just as important, remain an industry-leading business. General Mills is in an investment year What's important to highlight is that General Mills isn't ignoring the headwinds it faces. It entered fiscal 2026 with a goal of focusing on advertising, adjusting pricing, and reshaping its portfolio. Management expects the next quarter to be an inflection point, with financial results improving into the next fiscal year. That suggests that now, while investors are still deeply negative, could be a good time to buy the stock.Read NextMar 15, 2026 •By Reuben Gregg BrewerConagra Brands Is Set to Invest $220 Million in a Manufacturing Plant But Its Stock is Down This Week. Is the Packaged Foods Company a Buy in 2026?Mar 14, 2026 •By Eric VolkmanShould You Buy the 3 Highest-Paying Dividend Stocks in the S&P 500?Mar 12, 2026 •By Catie HoganIs Conagra Stock a Long-Term Buy?Mar 4, 2026 •By Matt DiLallo3 Monster Dividend Stocks Yielding Up to 10.7%Mar 3, 2026 •By John BallardIs Conagra Brands Stock Going to $25?About the AuthorReuben Gregg Brewer is a contributing Motley Fool stock market analyst covering energy, utilities, REITs, and consumer staples. He is the former director of research at Value Line Publishing, where he rose from mutual fund analyst to equity analyst before leading all research operations. Reuben holds a bachelor’s degree in psychology from SUNY Purchase, a master’s in social work from Columbia University, and an MBA from Regis University. He has been featured as a financial expert on CNBC and in the Financial Times, Barron’s, and InvestmentNews.TMFReubenGBrewerStocks MentionedConagra BrandsNYSE: CAG$15.53(-1.21%)-$0.19General MillsNYSE: GIS$37.27(+0.12%)+$0.05*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.