Conagra Brands’ Cash Flow Increases The Safety Of Its Dividend Yield

Recap from July’s Picks

On a price return basis, the Safest Dividend Yields Model Portfolio (-3.0%) underperformed the S&P 500 (-2.8%) by 0.2% from July 20, 2023 through August 21, 2023. On a total return basis, the Model Portfolio (-2.5%) outperformed the S&P 500 (-2.8%) by 0.3% over the same time. The best performing large-cap stock was up 21%, and the best performing small-cap stock was up 9%. Overall, 11 out of the 20 Safest Dividend Yield stocks outperformed their respective benchmarks (S&P 500 and Russell 2000) from July 20, 2023 through August 21, 2023.

This Model Portfolio only includes stocks that earn an attractive or very attractive rating, have positive free cash flow and economic earnings, and offer a dividend yield greater than 3%. Companies with strong free cash flow (FCF) provide higher quality and safer dividend yields because strong FCF is proof they have the cash to support the dividend. I think this portfolio provides a uniquely well-screened group of stocks that can help clients outperform.