The packaged food company reduces its payout to focus on debt reduction, marking its first dividend cut in five years.
Conagra Brands announced a 50% cut to its quarterly dividend, lowering the payout to $0.175 per share from $0.350. The move aims to accelerate deleveraging efforts amid ongoing financial restructuring.
The prior dividend of $0.350 had been maintained since 2019, with the company last adjusting its payout in 2018. The new dividend will be payable on September 2 to shareholders of record as of July 30, with an ex-dividend date also set for July 30.
The decision reflects Conagra’s strategic shift toward prioritizing debt reduction over shareholder returns, though no immediate market reaction was disclosed.