Top 10 High Dividend Yielding Consumer Defensive Stocks To Buy

5. Conagra Brands, Inc. (NYSE:CAG)

Conagra Brands, Inc. is a consumer packaged goods food company operating mainly in the US. It operates in Refrigerated & Frozen, food service, Grocery & Snacks, and International segments. The company offers an attractive dividend yield of 5.45%.

There is no denying the fact that the stock has considerable headwinds, which have elevated the dividend yield. Goldman Sachs downgraded the stock last month, bringing the target price to $26, the same level it currently trades at.

CAG recently reduced its FY25 guidance because of supply chain issues. Increasing competition in frozen foods from peers has dented the company’s ability to increase organic sales. To make matters worse, margins are expected to remain under pressure well into 2026 as per Goldman:

“We have observed further increases in several of its key commodities over the past couple of months, which could lead to incremental margin pressure in FY26.”

Unlike many other dividend income stocks, CAG’s yield hasn’t always been this high. Recent challenges have brought it to a level where investors with a slightly higher risk tolerance can invest in the stock. If the yield normalizes back to the 2.5% mark without any dent on the payout amount, there could be significant upside to the stock.