Conagra and Campbell's Have Already Cut Their Dividends in 2026. Could General Mills Be Next?

General Mills (GIS) sits on a 7.2% dividend yield while two packaged-food peers have already cut payouts in 2026, putting the payout under scrutiny.

Conagra (CAG) has cut its dividend this year, as has Campbell's. The article ties the sector's struggles to inflation and the popularity of GLP-1 drugs.

GIS has held its payout, but the underlying numbers are weakening. Earnings are declining and organic growth is flat. Free cash flow currently covers the dividend, so the payment is funded today. The concern is trajectory: if earnings keep sliding while organic growth stays flat, the cushion between cash flow and the payout could narrow.

Interpretation: a 7.2% yield is unusually high for a large food company, and the market may be pricing in some probability of a cut. The CAG cut shows management teams in this group are willing to reduce payouts when pressure builds. That sets a precedent, though it does not by itself mean GIS follows.

The article's central argument is that financial deterioration, not current coverage, is what raises the sustainability question.