Conagra Brands Slashes Its 10% Dividend Yield in Half Just 1 Month After Getting Kicked Out of the S&P 500. Here's Why the Stock Isn't Tanking.
Conagra is taking steps to turn its business around, but the packaged food industry is facing a potentially long-term slowdown.
Overview
Conagra Brands (NYSE: CAG) reported fourth-quarter and full-year fiscal 2026 earnings on July 15. Newly appointed CEO John Brase, who took the helm on June 1, wasted no time announcing a 50% cut to the dividend, reducing the quarterly payout from $0.35 per share to $0.175, or $0.70 per year. The dividend cut will reduce Conagra's yield from 10% to 5%, which is still high-yield territory and significantly higher than the S&P 500's dividend yield of 1%.
With Conagra stock down more than 50% in the last two years and its market cap falling to $6.7 billion, Conagra was kicked out of the S&P 500 on June 29.
Details
Despite the massive dividend cut, Conagra Brands fell just 0.4% on July 15. Here's why the dividend cut could signal the right move for long-term investors. Is the value stock a good buy now?
Source
Originally published at www.fool.com.
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