Better High-Yield Buy: Kraft Heinz or Conagra Stock

Core Viewpoint - The article compares Conagra and Kraft Heinz, highlighting their high dividend yields and performance challenges, ultimately suggesting that Conagra may be the better investment choice for high-yield investors. Company Overview - Conagra and Kraft Heinz are both focused on packaged foods, with Conagra owning brands like Slim Jim and Birds Eye, while Kraft Heinz includes Oscar Mayer and Jell-O among its offerings [2][3]. - Kraft Heinz has a market capitalization of approximately $36 billion, making it three times larger than Conagra, which has a market cap of around $12 billion [3][4]. Financial Performance - Both companies are experiencing financial difficulties, with Kraft Heinz's issues being largely self-inflicted due to a focus on cost-cutting post-merger, while Conagra's challenges are more organic [5][6]. - Kraft Heinz's dividend has remained stagnant at $0.40 per share since its cut in 2019, indicating a need for a turnaround [10]. - Conagra's adjusted earnings fell by 1.4% in the fiscal second quarter of 2025, but organic sales increased by 0.3%, suggesting some positive momentum [11][12]. Dividend Analysis - The high dividend yields of both companies, 5.1% for Conagra and 5.4% for Kraft Heinz, are attributed to their lagging financial performance compared to the broader food industry [1][8]. - Conagra has increased its dividend for five consecutive years, while Kraft Heinz's stagnant dividend reflects its ongoing struggles [12][13]. Investment Outlook - Conagra appears to be performing better currently, making it a more attractive option for investors willing to accept higher risk for potential rewards [13][14]. - The article suggests that while both companies are likely to survive, Conagra is slightly ahead in its turnaround efforts, positioning it as a preferable income stock [14].