Conagra represents a valuation/yield opportunity. The stock trades at just 10.0 times forward earnings while delivering a high yield that management has consistently affirmed. This combination creates a compelling total-return profile: investors are essentially buying a staple-foods franchise at depressed pricing while collecting a high-single-digit cash payout.
The second pillar is portfolio quality and margin resilience. The firm is actively shedding low-growth, low-margin assets to concentrate on categories where it holds or gains share while deploying productivity programs to expand profit margins.
CONAGRA BRANDS INC. (New York symbol CAG) lets you tap the maker of some of North America’s most popular food brands. They include Hunt’s tomato sauce, Birds Eye frozen meals, Duncan Hines baking products, Orville Redenbacher popcorn and Reddi-wip whipped cream.
In August 2024, the company completed the sale of its 51.8% stake in Agro Tech Foods Limited. Based in India, this firm makes a variety of foods such as breakfast cereals, snacks and candies.
Conagra did not say how much it received, but earlier disclosed it expected proceeds of $78 million.
The sale has let the company focus on its main businesses in North America. A deal to license some of its brands to Agro Tech will also let it continue to benefit from rising demand for snack foods in India.
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Meanwhile, the company also sold its Chef Boyardee brand of ready-to-eat pasta meals. The buyer, Hometown Food Company (owned by Brynwood Partners), will let Conagra keep making Chef Boyardee frozen skillet meals under a licensing agreement. Conagra received $600 million.
In June 2025, Conagra also sold its Mrs. Paul’s and Van de Kamp’s brands of frozen breaded and battered fish products from Conagra Brands (symbol CAG on New York). The purchase price was $55 million U.S. for the brands, which includes $36 million in inventory.
Conagra’s high dividend payout appears safe for investors
In the three months ended November 23, 2025, Conagra’s revenue fell 6.8%, to $2.98 billion from $3.20 billion a year earlier.
Tariffs are increasing Conagra’s costs for food ingredients, such as cocoa, olive oil and palm oil, as well as the steel and aluminum that it uses for packaging. As a result, earnings before unusual items fell 35.3%, to $0.45 a share (or a total of $218.0 million) from $0.70 a share (or $337.0 million).
Tariffs are increasing Conagra’s costs for food ingredients, such as cocoa, olive oil and palm oil, as well as the steel and aluminum that it uses for packaging. However, to offset those expenses, the company plans to raise certain selling prices. It’s also modernizing its facilities and expand production in faster-growing categories.
Conagra still expects sales in fiscal 2026 to be flat compared with 2025. It also expects earnings per share will range between $1.70 and $1.85. The stock trades at 10.0 times the midpoint of that range, which is a reasonable multiple in light of the company’s popular brands and high market share. The $1.40 dividend still looks safe, and it yields a high 8.0%.
Recommendation in Wall Street Stock Forecaster: Conagra Brands Inc. remains a buy.
