Get a 4.6% Yield From Campbell’s Company

Campbell's Co.’s strong brands are in demand as it offers a high 4.6% yield at a low valuation while continuing to cut costs and boost its results.

The stock has declined approximately 20% since the start of this year, creating an exceptional value opportunity as the shares trade near at just 11.5 times expected earnings—plus a 4.6% yield!

This offers plenty of upside thanks to the Campbell’s improving fundamentals: and that includes the big acquisition of Savos Brands that continues to pay off.

What’s more, the company continues executing on a $250 million annual cost savings program that’s helping offset tariffs.

CAMPBELL’S COMPANY (Nasdaq symbol CPB; www.thecampbellscompany.com) recently changed its name from Campbell Soup Co. to reflect its broader array of products, including soups, sauces and snack foods. It also transferred its stock listing from the New York Stock Exchange to Nasdaq (the shares continue to trade under the “CPB” symbol).

In March 2024, the company completed its $2.9 billion acquisition of Sovos Brands Inc. (Nasdaq symbol SOVO), the maker of Rao’s pasta sauces.

Campbell’s continues to benefit as more people eat at home instead of restaurants due to the current economic uncertainty. That has helped offset weaker demand for its snack products.

The company’s sales in its fiscal 2025 fourth quarter, ended August 3, 2025, rose 1.2%, to $2.32 billion from $2.29 billion a year earlier.
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Excluding one-time items, the company’s earnings declined 1.6%, to $0.62 a share (or a total of $321 million) from $0.63 a share (or $329 million). Even so, that also beat the consensus estimate of $0.57.

Cost savings will help offset the impact of tariffs

Campbell’s continues to realize cost savings under a new plan to improve its efficiency. It expects annual cost savings will total $250 million by the end of fiscal 2028.

Those savings will help offset the impact on tariffs on its food ingredients and packaging materials.

As a result, Campbell’s will probably earn $2.95 a share in fiscal 2026, and the stock trades at 11.5 times that estimate. That’s a low multiple considering the company’s strong brands and market share.

Meantime, Campbell’s remains confident in its long-term prospects. In January 2025, it raised your quarterly dividend by 5.4%, to $0.39 a share from $0.37. The new annual rate of $1.56 yields 4.6%.

Recommendation in Wall Street Stock Forecaster: Campbell’s Co. is a buy.

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Jim Bates

Jim is an associate editor at TSI Network. He is the lead reporter and analyst for The Successful Investor and Wall Street Stock Forecaster and a member of the Investment Planning Committee. Jim has held the Chartered Financial Analyst designation since 1992 and spent more than a decade at the Financial Post DataGroup before joining TSI Network. He has a Bachelor of Commerce degree from the University of Toronto.

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