Meet the Highest-Yielding Stock in the S&P 500. Does Its 10.2% Yield Make It a No-Brainer Buy for Dividend Investors?
Yahoo Finance ·
Conagra ( CAG +2.18% ) operates in the consumer staples sector, a market segment generally considered a safe haven for dividend investors. However, the stock's 10.2% dividend yield is an important signal of risk. For reference, the S&P 500 index ( ^GSPC 0.05% ) is yielding just 1%, while the average consumer staples company yields 2.1%. You need to dig in a little more before you buy this ultra-high-yield food maker. At this point, Wall Street appears to expect Conagra to cut its dividend. Given the well-above-peer-average yield, the cut could be 50% or more. As a dividend investor , you need to heed the market's warning and carefully consider the possibility of a cut. On the surface, the risk seems modest. The company posted adjusted earnings of $0.39 per share in the fiscal third quarter of 2026 and paid a per-share dividend of $0.35. That's tight, but there's still some wiggle room. The problem is that Conagra isn't performing particularly well as a business right now. Adjusted earnings fell more than 20% year over year in the quarter. There are industry headwinds that every consumer staples maker is facing, including inflation, budget-conscious consumers, and regulatory changes. But Conagra's portfolio is not industry-leading, with its best-known brand likely being Slim Jim.
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