Small-cap stock Conagra Brands (NYSE: $CAG) has a dividend that stands out.
The packaged food company currently pays a quarterly dividend to shareholders of $0.35 U.S. per share, giving the stock a yield of 9.86%, one of the highest payouts on Wall Street.
Investors might not be familiar with Conagra Brands name but they would certainly know some of the company’s food brands.
Headquartered in Chicago, Conagra Brands has been a going concern since 1919. Last year, the company sold nearly $12 billion U.S. of food products.
Well-known brands and products from Conagra include Hungry-Man frozen dinners, POGO corn dogs, Swiss Miss hot cocoa, and Pam cooking spray, among many others.
The company’s stock has fallen on hard times as consumers seek out healthier food options and over concerns about the impact of weight-loss drugs on its business.
Through five years, CAG stock is down 59%, including an 18% decline in the first half of 2026.
Currently, Conagra Brands has a market capitalization of $6.79 billion U.S., making it a small-cap stock. Poor financial results in recent years have also weighed on the share price.
Management has responded to the share price decline by focusing on the dividend.
Conagra Brands has raised its dividend for five consecutive years, with an average annual increase of 10.50% during that time.
Conagra has paid a distribution to shareholders for 50 consecutive years, dating back to 1976. However, the company did not raise its dividend at the onset of the COVID-19 pandemic.
Despite Conagra’s struggles, some investors might find CAG stock’s 10% dividend yield attractive and won’t mind getting paid to wait for a turnaround at the food company.
Conagra’s share price is at $14.20 U.S. on July 14.
