General Mills reports adjusted earnings covering its $0.61 dividend, while Conagra’s $1.40 payout is supported by $1.70 full-year guidance.
General Mills and Conagra face pressure from shifting consumer spending and inflation, driving their stock prices lower and dividend yields higher. General Mills’ 7.2% yield is backed by a 60% payout ratio, with Q3 adjusted earnings of $0.64 covering its $0.61 dividend.
Conagra’s 9.9% yield appears riskier due to negative GAAP earnings from one-time charges, but adjusted earnings of $0.42 in Q3 and full-year guidance of $1.70 per share support its $1.40 annual dividend. The adjusted payout ratio stands at roughly 80%.
Both companies are navigating tighter budgets and higher costs, but General Mills’ stronger coverage metrics make it the more stable dividend pick.