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Conagra Brands (CAG) is a packaged food company that operates predominantly in the United States (over 90% of revenue and profits).

It has a significant presence in the freezer aisle, with brands such as Marie Callender’s, Healthy Choice, Banquet, and Birds Eye. Other popular brands include Duncan Hines, Hunt’s, Slim Jim, Vlasic, Orville Redenbacher's, Reddi-wip, Wish-Bone, and Chef Boyardee.

While the majority of revenue is sold into the U.S. retail channel, 9% of fiscal 2022 sales came from the food-service channel, down from 11% in fiscal 2019 due to the pandemic.

It distributes its products to retail outlets.

The company was incorporated in 1919 and is headquartered in Chicago, Illinois.

Three key data points gauge Conagra Brands Inc. or any dividend-paying firm.

The key three are:

(1) Price

(2) Dividends

(3) Returns

Those three basic keys best tell whether any company has made, is making, and will make money.
 

CAG Price

Over the past year, Conagra Brands' share price dropped nearly 15.5% from $34.37 to $29.05 as of Monday’s market close.

If Conagra Brand’s stock trades in the range of $25.00 to $45.00 this next year, its recent $29.05 share price might rise to $34.00 by next year. Of course, CAG’s price could drop about the same $4.95 amount or more.

My upside estimate of $4.95, however, is $3.57 below the median one-year target price conjured up by fifteen analysts tracking CAG for brokers.
 

CAG Dividend

Conagra Brands Inc paid regular quarterly dividends since March 1,1992 with (generally) annual increases. CAG's most recent Q dividend, paid August 31st, 2023 to shareholders of record July 28th, is $0.35. Its annual dividend payout of $1.40 is projected to yield 4.82% per Monday’s closing price.
 

CAG Returns

Adding the $1.40 anticipated annual dividend to Conagra Brands' estimated $4.95 likely price upside reveals a $6.35 potential gross gain per share for the coming year.

At Friday’s $29.05 closing price, a little under $1000 would buy 34 shares.

A $10 broker fee (if charged), paid half at purchase and half at sale, might cost us about $0.29 per share.

Subtracting that maybe $0.29 brokerage cost from my estimated $6.35 gross gain per share makes a net gain of $6.06 X 34 shares = $206.04 or about a 20.6% net gain.

This may be the time to pounce on Conagra Brands Inc. shares. But beware, CAG is a Package Foods provider doing business in a highly competitive grocery environment. However, the estimated $48.20 dividend from $1000 invested comes in at just under 1.7 times the recent $29.05 single share price. The choice is yours.

Remember the true value of any stock is best realized by your personal ownership of shares.

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