Is Ultra-High-Yield Conagra Brands a Buy, Sell, or Hold in 2026?

Core Viewpoint - Conagra Brands offers a substantial 7% dividend yield, attracting dividend investors, but faces significant risks that may affect its attractiveness as an investment [3][5][6] Investment Considerations Buy Conagra Brands? - The primary reason to consider buying Conagra is its high dividend yield of 7%, appealing to dividend-focused investors [3] - As a consumer staples company, Conagra is viewed as a safe investment during market volatility, providing essential products at reasonable prices [3] Sell Conagra Brands? - The dividend payout ratio is concerning, especially since the company reported a loss, with the ratio previously exceeding 100%, indicating potential risks to the dividend's safety [5][6] - In the fiscal second quarter of 2026, Conagra reported a loss of $1.39 per share, primarily due to non-cash goodwill and brand impairment charges, which, if excluded, would have resulted in earnings of $0.45 per share, covering the $0.35 quarterly dividend [6] Hold Conagra Brands? - Investors who have benefited from the stock's price increase in 2026 may consider taking profits and reallocating to higher-quality competitors like Coca-Cola, despite the potential loss of yield [9] - Conagra's organic sales declined by 3% in the fiscal second quarter of 2026, contrasting with Coca-Cola's 5% increase, highlighting challenges in maintaining sales amid changing consumer preferences [10]