The Top High-Yield Dividend Stock to Buy Now for Oil Price Protection

Now that the Federal Reserve has opted to keep interest rates unchanged at the 3.50% to 3.75% range, investors' focus should shift back towards portfolio management. And being mindful of uncertainties about inflation in the future, Fed Chair Jerome Powell has made the case even stronger for investing in consumer staple stocks.

Conversely, while Powell's assertions may lead to an indirect inference to load up on names from the consumer staples space, investment firm Schroders has cited historical data to make a case for the same. Notably, the firm's analysis has revealed that energy, consumer staples, healthcare, and utility sectors have gained more than 5% in the 12 months following major global oil supply shocks.

Considering this, a checkered name from the consumer staples sector, which pays a high dividend yield, seems to be an appropriate choice for the short term, especially for investors seeking safety and a regular source of income.

About Conagra Foods

Founded more than a century ago in 1919, Chicago-based Conagra Foods (CAG) is a leading North American packaged food company focused on branded, value-added food products. Some of the household brands in its possession include Slim Jim, Hunt’s, Healthy Choice, and Marie Callender’s, among others.

Valued at a market cap of $7.7 billion, CAG stock is down 11% on a year-to-date (YTD) basis. However, the stock offers a dividend yield of 9.09%, which is much higher than the sector median of 2.57%.

However, the company's results for the most recent quarter were a mixed bag. While earnings surpassed Street estimates, revenues were a miss. Overall, the results were disappointing, as revenue and earnings both witnessed a decline from the previous year.

In fiscal Q2 2026, Conagra's net sales of about $3 billion denoted an annual fall of 6.8%, as all key revenue segments showed a decline. Earnings slid by more than 35% in the same period to $0.45 per share, although it just managed to pip the consensus estimate of $0.44 per share.

Net cash flow from operating activities also halved to $331.2 million for the six months ended Nov. 23, 2025, from $754.2 million in the year-ago period. Overall, the company closed the quarter with a cash balance of $46.4 million, which was much lower than its short-term debt levels of $776.9 million, raising liquidity concerns.

Despite all this, CAG stock is looking undervalued. Its forward P/E, P/S, and P/CF of 9.40, 0.69, and 6.36 are all below the sector medians of 15.14, 1.08, and 10.52, respectively.

Is There Hope?

The financials may paint a gloomy picture, but management believes a turnaround is imminent. CEO Sean Connoly iterated as much when he said in the recent quarterly earnings release that, “While we continued to navigate a challenging consumer environment in the second quarter, I am pleased with the continued underlying momentum we are seeing across the business. As we look ahead to the second half, we are well positioned to return to organic net sales growth supported by a robust innovation pipeline, increased merchandising and A&P investment, and a resilient supply chain. While the macro environment remains dynamic, our active management and focused execution give us confidence in our path forward.”

This may provide some succor to the market, but the proof is in the pudding, and Conagra is making some moves to embark on the path of growth again.

To revitalize growth and counter recent volume declines, Conagra Brands’ management is aggressively streamlining its portfolio while pivoting toward high-margin categories. A key pillar of this turnaround is the divestiture of low-growth assets, evidenced by the recent sale of its 51.8% stake in Agro Tech Foods. Management is reinvesting these resources into core growth engines like frozen foods and protein snacks. Furthermore, the company reaffirmed its fiscal 2026 guidance, projecting adjusted EPS between $1.70 and $1.85. Executives expect organic net sales to rebound in the second half of the year as merchandising and innovation slates return to full strength.

Meanwhile, to drive revenue and recapture market share, Conagra is leveraging a robust product innovation pipeline, recently launching over 50 new items tailored to modern consumer trends. In its $3.2 billion snacks division, the company introduced trend-forward items like Vlasic Pickle Balls, DAVID Honey Roasted Sunflower Seeds, and expanded protein offerings with the newly acquired FATTY Smoked Meat Sticks. Within the frozen segment, premium options like Evol’s Hot Honey Chicken and new Birds Eye Sauced Vegetables are being deployed to command pricing power, elevate volume, and appeal to convenience-seeking shoppers.

Finally, to defend margins against a projected 7% core cost inflation in fiscal 2026, Conagra launched Project Catalyst, a structural overhaul leaning heavily on artificial intelligence and automation. This initiative uses AI for predictive manufacturing maintenance, automated labeling, and dynamic pricing optimization. On the supply chain front, the company is extracting zero-cost efficiencies; for instance, leveraging Oracle's (ORCL) Transportation Management software saved roughly $250,000 and eliminated 241 underutilized truck trips through load consolidation. By reengineering these core workflows, management aims to secure an adjusted operating margin between 11.0% and 11.5%, ensuring long-term profitability amidst volatile macroeconomic headwinds.

Analyst Opinion on CAG Stock

Taking all of this into account, analysts have attributed a consensus rating of “Hold” for CAG stock, with a mean target price of $18.87, which denotes an upside potential of about 23% from current levels. Out of 16 analysts covering the stock, two have a “Strong Buy” rating, 11 have a “Hold” rating, one has a “Moderate Sell” rating, and two have a “Strong Sell” rating.