Conagra Brands Joins Ranks of High-Profile Dividend Cutters

Conagra Brands CAG is the latest high-profile company to cut its dividend. In mid-July, the packaged foods company reduced its quarterly payout by half. This move follows a long line of name-brand dividend cutters, including Dow Chemical DOW, Walgreens, 3M MMM, Intel INTC, and Harley-Davidson HOG. Their stock prices generally fell on the news.

Investors can identify companies with dividends at risk by looking at history, but even those with impressive track records of dividend payments have fallen victim to cuts. Morningstar's equity income indexes employ forward-looking screens for dividend durability, which include payout ratio, distance to default, and the Morningstar Economic Moat Rating.

The high yield that attracted investors may be a red flag. Conagra Brands' stock yielded over 10% on a trailing 12-month basis at the end of June 2026, but its share price has fallen by more than 50% over three years. The company's decline is attributed to several factors affecting the packaged food industry, including inflation, competition from organics, and appetite suppression.