Core Viewpoint - The stock of Conagra Brands, Inc. (NYSE: CAG) has experienced a significant decline over the past several years, leading to an increase in dividend yield [1] Company Analysis - Conagra Brands has seen its stock price drop considerably, which has resulted in a dividend yield that is now well over the previous levels [1] - The company is viewed as an undervalued asset, presenting potential income opportunities and underpriced growth prospects [1] Investor Perspective - The investor profile indicates a long-term beneficial position in Conagra Brands shares, suggesting confidence in the company's future performance despite past challenges [2] - The investment philosophy emphasizes value prioritization and contrarian strategies, which may align with the current state of Conagra Brands [1]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Conagra Brands, Inc. (CAG) - Conagra Brands has a dividend yield of 7.20% [7] - UBS analyst Bryan Adams maintained a Neutral rating and reduced the price target from $21 to $20 on July 11, 2025, with an accuracy rate of 62% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and lowered the price target from $22 to $20 on July 11, 2025, with an accuracy rate of 70% [7] - Recent news indicates that Conagra Brands reported worse-than-expected quarterly financial results and provided FY26 adjusted EPS guidance below estimates [7] Group 2: The Kraft Heinz Company (KHC) - Kraft Heinz has a dividend yield of 6.03% [7] - Morgan Stanley analyst Megan Alexander upgraded the stock from Underweight to Equal-Weight and raised the price target from $28 to $29 on September 3, 2025, with an accuracy rate of 70% [7] - Mizuho analyst John Baumgartner maintained a Neutral rating and lowered the price target from $31 to $29 on May 28, 2025, with an accuracy rate of 62% [7] - Recent news reveals that Kraft Heinz plans to split into two separate publicly traded entities, a decision unanimously endorsed by its board of directors [7] Group 3: General Mills, Inc. (GIS) - General Mills has a dividend yield of 4.82% [7] - Morgan Stanley analyst Megan Alexander maintained an Underweight rating and cut the price target from $51 to $49 on June 27, 2025, with an accuracy rate of 70% [7] - Goldman Sachs analyst James Yaro downgraded the stock from Buy to Neutral and lowered the price target from $68 to $58 on June 9, 2025, with an accuracy rate of 65% [7] - Recent news indicates that General Mills will release its first-quarter report before the opening bell on Wednesday, September 17 [7]

Core Insights - During market turbulence, investors often seek dividend-yielding stocks, which typically have high free cash flows and offer substantial dividends [1] Group 1: Conagra Brands, Inc. (CAG) - Conagra Brands has a dividend yield of 7.20% [7] - UBS analyst Bryan Adams maintained a Neutral rating and reduced the price target from $21 to $20, with an accuracy rate of 62% [7] - Morgan Stanley analyst Megan Alexander maintained an Equal-Weight rating and lowered the price target from $22 to $20, with an accuracy rate of 70% [7] - Recent news indicates that Conagra reported worse-than-expected quarterly results and provided FY26 adjusted EPS guidance below estimates [7] Group 2: The Kraft Heinz Company (KHC) - Kraft Heinz has a dividend yield of 6.03% [7] - Morgan Stanley analyst Megan Alexander upgraded the stock from Underweight to Equal-Weight and raised the price target from $28 to $29, with an accuracy rate of 70% [7] - Mizuho analyst John Baumgartner maintained a Neutral rating and reduced the price target from $31 to $29, with an accuracy rate of 62% [7] - Recent news reveals that Kraft Heinz plans to split into two separate publicly traded entities, a decision unanimously endorsed by its board [7] Group 3: General Mills, Inc. (GIS) - General Mills has a dividend yield of 4.82% [7] - Morgan Stanley analyst Megan Alexander maintained an Underweight rating and cut the price target from $51 to $49, with an accuracy rate of 70% [7] - Goldman Sachs analyst James Yaro downgraded the stock from Buy to Neutral and lowered the price target from $68 to $58, with an accuracy rate of 65% [7] - General Mills is set to release its first-quarter report before the market opens on September 17 [7]

Group 1 - Conagra Brands, Inc. will release its fiscal 2026 first quarter results on October 1, 2025, followed by a live Q&A session with the investment community [1] - The company generated nearly $12 billion in net sales for fiscal 2025, highlighting its position as one of North America's leading branded food companies [3] - Conagra's portfolio includes well-known brands such as Birds Eye®, Duncan Hines®, Healthy Choice®, and many others, reflecting its commitment to innovation and consumer preferences [3] Group 2 - The live audio Q&A session can be accessed via a dedicated phone line for U.S. participants and international participants, emphasizing the company's engagement with investors [2] - Pre-recorded remarks, transcripts, and presentation materials will be available on the company's investor relations website, indicating a focus on transparency and communication with stakeholders [2]

Core Insights - The article emphasizes the importance of understanding that past performance does not guarantee future results, highlighting the need for careful analysis before making investment decisions [2][3] Group 1 - The article discusses the role of analysts in providing insights and opinions on various companies and industries, noting that these views may not reflect the overall stance of the publication [3] - It mentions that the information presented is believed to be factual and up-to-date, but does not guarantee accuracy or completeness [2][3] - The article clarifies that no specific investment recommendations are being made, and it is not an offer to buy or sell securities [2][3] Group 2 - The article indicates that the authors may include both professional and individual investors, some of whom may not be licensed or certified [3] - It highlights the potential for changes in opinions and judgments expressed by the authors as of the publication date [2][3] - The article underscores the importance of independent research and due diligence by investors when considering investment opportunities [2][3]

Core Insights - The Future of Snacking 2025 report by Conagra Brands highlights key trends shaping the $148.6 billion U.S. snacking market, emphasizing evolving consumer behaviors and preferences [1][8]. Group 1: Emerging Trends - **Flavor Explosion**: Traditional flavors like sea salt and BBQ remain popular, but bold flavors such as sriracha and garlic parmesan are driving significant growth [3][11]. - **Snacking Without Borders**: Global snack sales reached $5.7 billion, with a 22% volume growth over the past three years, driven by younger consumers' interest in multicultural flavors [4][11]. - **Better-for-You Snacking**: There is a rising demand for protein-rich, portion-controlled, and nutrient-dense snacks, particularly among Gen Z and Millennials, with specific claims like "grass-fed" and "gut health" gaining traction [4][11]. Group 2: Market Dynamics - **Co-Branded Bites**: Co-branded snacks are generating nearly $2.1 billion in annual sales, leveraging partnerships with restaurants and entertainment brands to enhance market appeal [4][11]. - **Snacks on the Go**: Convenience is a key driver, with away-from-home snack occasions projected to grow by 39% by 2027, indicating a shift towards more accessible snack options [5][11].

Group 1 - Samuel Smith has extensive experience in dividend stock research and investment, having served as lead analyst and Vice President at various firms [1] - He is a Professional Engineer and Project Management Professional, holding degrees in Civil Engineering & Mathematics and a Masters in Engineering with a focus on applied mathematics and machine learning [1] - Samuel leads the High Yield Investor investing group, collaborating with Jussi Askola and Paul R. Drake to balance safety, growth, yield, and value [2] Group 2 - High Yield Investor provides real-money core, retirement, and international portfolios, along with regular trade alerts and educational content [2] - The service includes an active chat room for investors to share insights and strategies [2]

Core Viewpoint - The article discusses seven low beta stocks with dividend yields up to 8%, which are considered more stable during market downturns, providing a cushion against volatility [2][3]. Group 1: Low-Beta Dividend Stocks - Getty Realty (GTY) offers a 6.6% yield with a 5-year beta of 0.86 and a 1-year beta of 0.12, indicating lower volatility compared to the market. The company has a stable cash-flowing tenant base, primarily from convenience stores and car washes [5][7]. - AES Corp. (AES) has a 5.5% yield and operates with a 1-year beta of 0.88 and a 5-year beta of 0.96. It combines traditional utility services with renewable energy sales, providing growth potential [9][10]. - Northwest Bancshares (NWBI) offers a 6.8% yield with a 5-year beta of 0.69 and a 1-year beta of 0.80. The company has a solid balance sheet but faces challenges in consistent growth despite a recent merger [11][12]. - Conagra Brands (CAG) has a yield of 7.4% but faces significant challenges, including supply chain issues and food inflation, with a 1-year beta of -0.05 and a 5-year beta of 0.08 [17][21]. - Cal-Maine Foods (CALM) boasts an 8.0% yield and has seen a 60% increase year-to-date, with a 1-year beta of 0.67 and a 5-year beta of 0.19. The company has benefited from rising egg prices but faces income variability [23][24]. Group 2: Market Performance and Trends - The article highlights that low beta stocks tend to attract buyers during market downturns, which can help stabilize their share prices [3]. - The performance of low beta stocks like Kraft Heinz (KHC) and General Mills (GIS) has been disappointing, with low betas reflecting counter-market movements rather than stability [14][15]. - The overall trend indicates that while some low beta stocks have maintained dividends, their growth has been limited, and challenges remain in the current market environment [16][22].

Group 1: Company Overview - Conagra Brands is a consumer staples company with a market cap of around $9 billion, producing packaged food products under notable brands like Slim Jim, Hunts, Healthy Choice, and Duncan Hines [2] - The company is considered a second-tier player in the packaged food space, which implies it may face challenges in a market where quality is prioritized over value [4] Group 2: Financial Performance - Over the past year, Conagra's stock has lost a third of its value, indicating underlying issues within the company [5] - The company's gross profit margin has been declining since reaching a peak in 2023, coinciding with the stock's downward trend [5] - Revenue has also been trending lower, suggesting that Conagra's brand portfolio is not resonating well with consumers, complicating the gross profit margin situation [6] Group 3: Recent Results and Guidance - In the fiscal fourth quarter of 2025, Conagra experienced a 4.3% drop in sales and a 3.5% decline in organic sales, both worse than the full-year fiscal 2025 figures [7] - Guidance for fiscal 2026 indicates that organic sales are expected to be roughly flat, with a projected decline in adjusted operating margin and materially lower earnings [8] Group 4: Investment Considerations - While Conagra is likely to survive its current challenges, it may not be an attractive investment for most, particularly conservative dividend investors, due to a high adjusted earnings dividend payout ratio projected to be as high as 80% in fiscal 2026 [10] - The lack of a dividend increase since the second quarter of fiscal 2024 further underscores concerns regarding the company's financial health [10]

Group 1: Tariff Impact on Companies - Companies are warning that tariffs will raise costs by hundreds of millions of dollars as the deadline for higher import taxes approaches [1] - Stanley Black & Decker expects an annualized hit of $800 million from tariff-related policy changes [2] - Conagra Brands anticipates a 3% increase in the cost of goods sold due to higher tariffs, translating to over $200 million annually [2] Group 2: Specific Company Effects - Tesla reports an increase in costs tied to tariffs of approximately $300 million, with two-thirds related to its auto business [3] - General Motors experienced a $1.1 billion hit to earnings before interest and taxes attributed to the net effect of tariffs [4] - The impact of steel and aluminum tariffs is also affecting companies like Conagra Brands, despite most of their production being in the U.S. [3]