Potential Peril for This 7% Yielder

The last couple of years have been a struggle... ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ ‌ 

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View in browser SPONSORED The No.1 Stock for Trump Bump Profits Those who move today could 10X Their Money. Money & Markets’ Chief Investment Strategist, Adam O’Dell, just unveiled his No. 1 stock to capitalize on the ‘Trump Bump’ in the markets. It’s a stock that Adam says is… “On the cusp of exploding upwards… as a direct result of Trump’s historic election win. And critically for investors… it’s an opportunity that won’t come around again for multiple decades.” Make this move fast, thought... because Adam says "those who move today, could 10X Their Money." Click here to see all the details. SAFETY NET Is Conagra Brands' 7% Yield in Trouble? John Oravec, Research Analyst, The Oxford Club The name Conagra Brands (NYSE: CAG) may not immediately be recognizable to you. But I would hazard a guess that you currently have one of its products in your refrigerator or pantry right now. The company manufactures and sells grocery store staples such as Hunt's tomatoes, Swiss Miss hot cocoa and pudding, Pam cooking spray, and many more. Unfortunately for Conagra, the past couple of years have been a struggle, with its stock price retreating 54% since its peak in January 2023. Several factors, such as tightening margins, inflation, and negative M&A (mergers and acquisitions) results, have led to a slow but steady decrease in sales. The stock's current dividend yield sits at 7.4%. It has avoided any dividend cuts in the last 10 years - with the exception of when it spun off Lamb Weston Holdings (NYSE: LW) to separate its potato business from the rest of the company. With all of the recent bad news, let's see whether Conagra's dividend is at risk of being cut or there is still hope for a rebound. First, we need to highlight a huge move by the company: In June of this year, Conagra sold off the brand Chef Boyardee for $600 million. (While that's very helpful in padding its free cash flow, I'm tempted to knock a point off Conagra's dividend safety rating because it canned up my childhood nostalgia and sold it off.) Only time will tell how much this will affect the company's bottom line, as estimates in 2024 showed that Chef Boyardee brought in $450 million in sales. SPONSORED Alex Green's #1 AI Stock Right Now Where He's Invested $100K of His Own Money Find out where he's invested $100,000 of his own money... Now let's isolate Conagra's ability to pay its dividend by looking at its free cash flow. Despite the contraction of the stock price, 2024 was surprisingly a very good year for the company, as it more than doubled its free cash flow from $633 million to more than $1.6 billion. The problem is that ever since then, there's been a steady decline. Free cash flow sunk almost 20% to $1.3 billion in fiscal 2025, which ended in May. What's even worse is that even with the company selling several of its brands this year, forward estimates indicate a 42% reduction in 2026 all the way down to $760.2 million. View larger image   Finally, Conagra has announced no plans to cut its dividend, which is going to throw its dividend payout ratio out of whack. Its payout ratio for 2025 sat at 51.4%, but due to the massive estimated decrease in free cash flow for 2026, that ratio is estimated to jump to 88.0% - above our threshold of 75%. So, is there any hope that the company will be able to turn things around? Or will its dividend payout get "canned"? Click Here to Find Out CAG's Grade BUILD AND PROTECT YOUR WEALTH Is Your Portfolio Ready for the Gold Boom? Find Out How to Prepare Now! Odd Monthly Event Could More Than Triple Your Money MORE FROM WEALTHY RETIREMENT The Problem With "Buy Low, Sell High" What Makes a Great Company... Before It's Great? Netflix: A Streaming Giant Worth Watching General Mills: How Safe Is This Beloved Company's Dividend? Facebook LinkedIn Email Share Push Alert SPONSORED The Ultimate Passive Income Investment It's not a stock, bond or private company... But this little-known alternative investment could hand you BIG MONTHLY INCOME. CLICK HERE TO FIND OUT WHAT IT IS You are receiving this email because you subscribed to Wealthy Retirement. Wealthy Retirement is published by The Oxford Club. Questions? Check out our FAQs. Trying to reach us? Contact us here. Please do not reply to this email as it goes to an unmonitored inbox. Privacy Policy | Whitelist Wealthy Retirement | Unsubscribe © 2025 The Oxford Club, LLC All Rights Reserved The Oxford Club | 105 West Monument Street | Baltimore, MD 21201 North America: 866.237.0436 | International: +1.443.353.4540 Oxfordclub.com Nothing published by The Oxford Club should be considered personalized investment advice. 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