u/rob-choi-investing

Conagra (CAG) after the $1.9B loss: is the dividend still covered?

After a $1.9B goodwill impairment, CAG's free cash flow has declined 40% in two years while the dividend payout ratio has surged to 68%, leaving coverage uncertain. The author questions whether FY26 represents a trough with sustainable ~$900M FCF (dividend still safe) or the start of ongoing volume declines that threaten dividend sustainability within one year.