This 7.4%-Yielding Dividend Stock Now Has the Highest Yield in the S&P 500. Can It Satisfy Your Hunger for Income?
The Motley Fool
by newsfeedback@fool.com (Matt DiLallo)February 26, 2026
AI-Generated Deep Dive Summary
Conagra (NYSE: CAG) has taken over as the highest-yielding dividend stock in the S&P 500, offering a impressive 7.4% yield. This shift occurred after chemicals giant LyondellBasell cut its dividend in half, relinquishing its title as the top performer. For income investors, this development raises questions about whether Conagra can sustain its high payout and deliver on the growing demand for reliable dividend income.
Conagra's ability to maintain its dividend despite economic uncertainties has made it a standout choice for yield-seeking investors. Unlike some companies that have reduced or eliminated their dividends in response to market challenges, Conagra has demonstrated stability, with a long history of consistent payouts. This reliability makes it an attractive option for those looking for steady income without sacrificing safety.
However, as with any investment, there are risks. Conagra's stock may be sensitive to broader economic trends, particularly given its reliance on consumer spending for non-essential items. Additionally, the company’s substantial debt load could pose a challenge in maintaining its
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Originally published on The Motley Fool on 2/26/2026