This 7.2% Yield Is Safe and On Stronger Ground Than It Seems

Consumer buying habits are shifting in a healthier direction. Inflation has been rising, in part due to high energy prices. And consumers are increasingly tightening their budgets. Food makers like Conagra (NYSE: CAG) and General Mills (NYSE: GIS) are facing a challenging business backdrop.That helps explain why the price of both stocks is down materially. And why their dividend yields are shockingly high, sitting at 9.9% for Conagra and 7.2% for General Mills. Of the two, General Mills is probably the better choice for dividend lovers. But a comparison of the two companies will help explain why.Conagra has taken material one-time charges over the past three quarters, pushing its earnings through the first nine months of fiscal 2026 deep into negative territory. As a result, the payout ratio is negative, meaning the food maker's earnings don't cover the dividend. Continue readingWeiter zum vollständigen Artikel bei MotleyFool Weiter zum vollständigen Artikel bei MotleyFool