Conagra Brands: Your Defensive Play in a Volatile Market

Ladies and gentlemen, listen up! The market is a rollercoaster right now, and you need to buckle up. But don’t worry, I’ve got the perfect defensive play for you: Conagra Brands (CAG). This stock is a no-brainer for income investors and a solid bet in these uncertain times. Let me break it down for you.

First things first, Conagra Brands is offering a whopping 5.41% dividend yield. That’s right, folks! A 5.41% dividend yield with a payout ratio of 55%. This means the company is paying out 55% of its earnings as dividends, which is sustainable and attractive for income investors. The dividend yield is calculated as the annual dividend per share divided by the price per share. In this case, the dividend yield is 5.41%, which is higher than the average dividend yield of the S&P 500 index. The payout ratio is the percentage of earnings paid out as dividends. A payout ratio of 55% means that Conagra Brands is paying out 55% of its earnings as dividends, which is a sustainable level. However, there are potential risks associated with its dividend sustainability. For example, Conagra Brands has a high level of debt, which could impact its ability to pay dividends in the future. Additionally, the company has large one-off items impacting its financial results, which could also affect its dividend sustainability.



Now, let’s talk about stability. Conagra Brands has a stable revenue stream, with revenue of $12.05 billion in 2024, a decrease of only -1.84% compared to the previous year. This stability is crucial in a volatile market, as it indicates that the company can maintain its earnings even during economic downturns. Conagra Brands has a highly dynamic product portfolio with iconic brands such as Reddi-Wip, Hunt's, Healthy Choice, Frontera, Slim Jim, Blake's, and Marie Callender. These brands have a strong market presence and customer loyalty, which can help the company weather market volatility.

And get this—Conagra Brands has a beta of 0.17, which means its stock price is less volatile than the overall market. This makes it a great defensive play, as it is less likely to experience significant price fluctuations during market volatility. Conagra Brands is trading at 67.6% below its estimated fair value, making it an attractive value play. This is in contrast to other defensive stocks in the consumer staples sector, such as Nestle SA (NSRGY) and Mondelez (MDLZ), which are trading at higher valuations. Earnings are forecast to grow 16.95% per year, which is higher than many other defensive stocks in the consumer staples sector. This indicates that the company has the potential for growth even during market volatility.

So, what are you waiting for? Conagra Brands is a defensive play that offers stability, growth potential, and a high dividend yield. It’s a no-brainer for income investors and a solid bet in these uncertain times. Don’t miss out on this opportunity to add a defensive play to your portfolio. BUY NOW!