22 S&P 500 Stocks Offering Over 5% Yield: 6 Recommended for Purchase.
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 4 days ago
0mins
Source: Barron's
Limited High-Yield Stocks: Only 22 non-real-estate stocks in the S&P 500 have dividend yields above 5%, indicating a scarcity of high-yield investment options.
Investment Potential: Despite the limited number, these stocks may still offer attractive income opportunities along with potential for stock appreciation, making them appealing for certain investors.
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Analyst Views on CAG
Wall Street analysts forecast CAG stock price to rise
14 Analyst Rating
1 Buy
12 Hold
1 Sell
Hold
Current: 15.200
Low
16.00
Averages
18.67
High
22.00
Current: 15.200
Low
16.00
Averages
18.67
High
22.00
About CAG
Conagra Brands, Inc. is a branded food company. The Company’s segments include Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment includes branded, shelf-stable food products sold in various retail channels in the United States. The Refrigerated & Frozen segment includes branded, temperature-controlled food products sold in various retail channels in the United States. The International segment includes branded food products in various temperature states, sold in various retail and foodservice channels outside the United States. The Foodservice segment includes branded and customized food products, including meals, entrees, sauces, and a variety of custom-manufactured culinary products that are packaged for sale to restaurants and other foodservice establishments primarily in the United States. Its brands include Birds Eye, Duncan Hines, Healthy Choice, Marie Callender's, Reddi-wip, Slim Jim, Angie's BOOMCHICKAPOP, and others.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Analyzing Investment Prospects for Campbell's Company Stock
- Stock Price and Valuation: As of March 24, Campbell's shares were trading at $20.91, with a trailing P/E of 11.46 and a forward P/E of 9.01, indicating a discounted valuation despite a 5.8% dividend yield and a payout ratio below 80%.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
See More
Key Focus Areas This Week: Jobs, Home Prices, Nike, McCormick, Conagra, and More
Market Performance: Equities have declined for the fifth consecutive week, with the Nasdaq Composite index dropping 3.2% and the S&P 500 falling 2.1%.
Correction Status: The Nasdaq has officially entered correction territory, indicating a drop of 10% or more from its recent high.
Percentage Decline: The Nasdaq is currently down 12.6% from its record close achieved in late October.
Overall Trend: The ongoing slump reflects a broader trend of declining equity markets over the past several weeks.
See More
Market Volatility Driven by Iran Conflict and Jobs Data Ahead
- Jobs Data Focus: Investors are poised to scrutinize the upcoming nonfarm payroll report, with expectations of 60,000 jobs added in March; failure to meet this target could heighten concerns over stagflation, complicating the Fed's monetary policy decisions.
- Consumer Confidence Survey: The consumer confidence index set to be released on Tuesday, along with Wednesday's retail sales report expected to show a 0.5% month-over-month increase, may reflect consumer spending resilience amid economic uncertainty, potentially boosting market sentiment.
- Nike Earnings Expectations: Nike's earnings report on Tuesday night is anticipated with caution, as the market reacts to a disappointing 17% revenue decline in China, despite a 9% sales increase in North America, leaving investors wary about the company's profitability recovery.
- Overall Market Risks: Beyond the Middle East conflict, the rapid adoption of artificial intelligence is also pressuring the market, with investor jitters over AI's potential negative impacts likely leading to further volatility in tech stocks, affecting overall market performance.
See More
Rising Oil Prices Pressure Stock Market Performance
- Oil Prices Surge: The ongoing rise in oil prices due to the Iran war has pressured the stock market, with the Nasdaq down 2.15%, the Dow Jones Industrial Average falling 1.73%, and the S&P 500 declining 1.67%, marking the fifth consecutive week of losses and reflecting a pessimistic outlook among investors.
- Shift in Investor Preference: As tech stocks struggle, investors are increasingly favoring oil and consumer goods stocks; Cramer noted that despite the poor performance of tech stocks like Nvidia, oil stocks remain strong, indicating sustained confidence in the energy sector.
- Market Outlook Ahead: Cramer highlighted that the upcoming week will be driven by developments in the Iran war, particularly the tense situation in the Strait of Hormuz, which could lead to further increases in oil prices and exacerbate downward pressure on stocks.
- Economic Data Impact: The forthcoming jobs report and earnings from Conagra Brands will provide crucial signals about economic health, with Cramer suggesting that weak economic data could prompt the Federal Reserve to consider rate cuts, thereby influencing market sentiment.
See More
S&P 500 Faces Correction Risk as Iran War Escalates
- Correction Risk Intensifies: As the Iran war stretches into its fifth week, the S&P 500 is just over 8% from its all-time high, facing a correction risk of more than 10%, indicating a sharp deterioration in market sentiment that could further undermine investor confidence.
- Increased Volatility: The S&P 500's breakdown below its 200-day moving average suggests further downside ahead, with the VIX averaging 26 when below that support, indicating that the market will experience heightened volatility, impacting investment strategies.
- Shifting Earnings Expectations: While strong corporate earnings growth and easier fiscal policy still support a market recovery, investor concerns over the prolonged Iran conflict have made the stock market outlook more uncertain, prompting some strategists to turn bearish.
- Employment Data Impact: The upcoming March nonfarm payroll report is expected to show an increase of 57,000 jobs, yet the market must remain vigilant regarding the resilience of the labor market to address potential economic slowdown risks.
See More
22 S&P 500 Stocks Offering Over 5% Yield: 6 Recommended for Purchase.
Limited High-Yield Stocks: Only 22 non-real-estate stocks in the S&P 500 have dividend yields above 5%, indicating a scarcity of high-yield investment options.
Investment Potential: Despite the limited number, these stocks may still offer attractive income opportunities along with potential for stock appreciation, making them appealing for certain investors.
See More
Analyzing Investment Prospects for Campbell's Company Stock
- Stock Price and Valuation: As of March 24, Campbell's shares were trading at $20.91, with a trailing P/E of 11.46 and a forward P/E of 9.01, indicating a discounted valuation despite a 5.8% dividend yield and a payout ratio below 80%.
- Brand Portfolio Strength: The company boasts a robust brand portfolio, including staple soups and well-known snack brands like Pepperidge Farm and Goldfish, and while consumer preferences are shifting towards healthier options, the demand for convenient meals and snacks remains strong, supporting the resilience of its core categories.
- Sales Growth Trend: Campbell's has achieved approximately 21% cumulative sales growth since 2021, and despite recent margin pressures, its stable cash flow and brand equity provide a foundation for future growth, suggesting that the market's pessimism regarding its long-term prospects may be overstated.
- Industry Performance Comparison: Within the packaged food sector, Campbell's has underperformed, with its stock price depreciating by about 44.90% since our last coverage due to weak snack demand and inflationary pressures, yet its compressed valuation amidst sector-wide pessimism may still present an attractive opportunity for investors.
See More
Key Focus Areas This Week: Jobs, Home Prices, Nike, McCormick, Conagra, and More
Market Performance: Equities have declined for the fifth consecutive week, with the Nasdaq Composite index dropping 3.2% and the S&P 500 falling 2.1%.
Correction Status: The Nasdaq has officially entered correction territory, indicating a drop of 10% or more from its recent high.
Percentage Decline: The Nasdaq is currently down 12.6% from its record close achieved in late October.
Overall Trend: The ongoing slump reflects a broader trend of declining equity markets over the past several weeks.
See More
Market Volatility Driven by Iran Conflict and Jobs Data Ahead
- Jobs Data Focus: Investors are poised to scrutinize the upcoming nonfarm payroll report, with expectations of 60,000 jobs added in March; failure to meet this target could heighten concerns over stagflation, complicating the Fed's monetary policy decisions.
- Consumer Confidence Survey: The consumer confidence index set to be released on Tuesday, along with Wednesday's retail sales report expected to show a 0.5% month-over-month increase, may reflect consumer spending resilience amid economic uncertainty, potentially boosting market sentiment.
- Nike Earnings Expectations: Nike's earnings report on Tuesday night is anticipated with caution, as the market reacts to a disappointing 17% revenue decline in China, despite a 9% sales increase in North America, leaving investors wary about the company's profitability recovery.
- Overall Market Risks: Beyond the Middle East conflict, the rapid adoption of artificial intelligence is also pressuring the market, with investor jitters over AI's potential negative impacts likely leading to further volatility in tech stocks, affecting overall market performance.
See More
Rising Oil Prices Pressure Stock Market Performance
- Oil Prices Surge: The ongoing rise in oil prices due to the Iran war has pressured the stock market, with the Nasdaq down 2.15%, the Dow Jones Industrial Average falling 1.73%, and the S&P 500 declining 1.67%, marking the fifth consecutive week of losses and reflecting a pessimistic outlook among investors.
- Shift in Investor Preference: As tech stocks struggle, investors are increasingly favoring oil and consumer goods stocks; Cramer noted that despite the poor performance of tech stocks like Nvidia, oil stocks remain strong, indicating sustained confidence in the energy sector.
- Market Outlook Ahead: Cramer highlighted that the upcoming week will be driven by developments in the Iran war, particularly the tense situation in the Strait of Hormuz, which could lead to further increases in oil prices and exacerbate downward pressure on stocks.
- Economic Data Impact: The forthcoming jobs report and earnings from Conagra Brands will provide crucial signals about economic health, with Cramer suggesting that weak economic data could prompt the Federal Reserve to consider rate cuts, thereby influencing market sentiment.
See More
S&P 500 Faces Correction Risk as Iran War Escalates
- Correction Risk Intensifies: As the Iran war stretches into its fifth week, the S&P 500 is just over 8% from its all-time high, facing a correction risk of more than 10%, indicating a sharp deterioration in market sentiment that could further undermine investor confidence.
- Increased Volatility: The S&P 500's breakdown below its 200-day moving average suggests further downside ahead, with the VIX averaging 26 when below that support, indicating that the market will experience heightened volatility, impacting investment strategies.
- Shifting Earnings Expectations: While strong corporate earnings growth and easier fiscal policy still support a market recovery, investor concerns over the prolonged Iran conflict have made the stock market outlook more uncertain, prompting some strategists to turn bearish.
- Employment Data Impact: The upcoming March nonfarm payroll report is expected to show an increase of 57,000 jobs, yet the market must remain vigilant regarding the resilience of the labor market to address potential economic slowdown risks.
See More
22 S&P 500 Stocks Offering Over 5% Yield: 6 Recommended for Purchase.
Limited High-Yield Stocks: Only 22 non-real-estate stocks in the S&P 500 have dividend yields above 5%, indicating a scarcity of high-yield investment options.
Investment Potential: Despite the limited number, these stocks may still offer attractive income opportunities along with potential for stock appreciation, making them appealing for certain investors.
See More
