In this article, we will take a look at the 10 Best Food Stocks with Highest Dividends.
Restaurant stocks have had a tough run this year. The industry is dealing with inflation, uneven economic growth, and the spread of weight-loss drugs across society. The S&P 500 Hotels, Restaurants and Leisure index is down more than 2.3% since the start of 2026.
The volatility reflects changing consumer habits, as artificial intelligence has contributed to job cuts, and GLP-1 drugs are starting to curb spending. Jon Tower described 2026 as a “wall of worry year” for the industry, saying it has created “frustration” for investors. He also expects “many opportunities” to come out of the choppiness. So far, restaurant chains have not reported clear shifts in demand tied to GLP-1 adoption. That could change, as early data suggests these drugs may begin to weigh on demand, as users tend to cut back on eating out. As access improves, the impact could become more visible. Quick-service and fast-casual chains look more exposed, given their reliance on frequent, lower-cost visits.
Restaurants are starting to respond. Many are adding higher-protein items and expanding beverage options to keep customers engaged. Full-service restaurants seem less affected, as they rely more on the overall dining experience than routine visits. At the same time, the labor market is softening. Slower job growth and rising unemployment are already affecting demand, especially among younger consumers. This has shown up in weaker sales at several fast-casual chains.
Spending patterns are also shifting across income groups. Lower-income consumers remain under pressure, leading fast-food chains to rely more on discounts and value meals. Casual dining brands are focusing more on perceived value rather than pushing prices higher.
Even with these challenges, analysts still see opportunities in select companies with strong brands, steady traffic, and disciplined operations. Over time, growth is expected to come from expansion, efficiency gains, and increased franchising.
Given this, we will take a look at some of the best food stocks with the highest dividends.
Our Methodology:
For this article, we screened for companies in the food sector that pay dividends, and included producers and processors, beverage companies, and restaurant chains. From that group, we picked food stocks with dividend yields above 2%, as of April 24. We limited our final selection to companies that have recently reported noteworthy developments likely to impact investor sentiment. These companies are also popular among elite funds and analysts.
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10. McDonald’s Corporation (NYSE:MCD)
Dividend Yield as of April 24: 2.46%
On April 23, Rothschild & Co Redburn upgraded McDonald’s Corporation to Neutral from Sell and raised its price target to $306 from $260.The firm says McDonald’s has executed its most comprehensive value reset since the Dollar Menu era. US traffic has returned to growth. Its two-year stacked same-store sales trend also shifted from negative to positive, the analyst noted in a research report. While weight loss drugs remain a risk, cost “continues to gate penetration among the low- income households” for McDonald’s, Rothschild added.
On April 21, Morgan Stanley lowered its price recommendation on MCD to $334 from $335. It reiterated an Equal Weight rating. The analyst described the consumer as “resilient” and said Q1 should be “solid for some, ugly for others,” in an earnings preview covering restaurants and food distributors.
McDonald’s Corporation is a global foodservice retailer. Its business is divided into the US, International Operated Markets, and International Developmental Licensed Markets & Corporate segments. The US remains its largest market and is about 95% franchised.
9. Starbucks Corporation (NASDAQ:SBUX)
Dividend Yield as of April 24: 2.49%
On April 21, Chris O’Cull of Stifel raised the firm’s price recommendation on Starbucks Corporation (NASDAQ:SBUX) to $115 from $105. It reiterated a Buy rating ahead of the company’s report due April 28 after-market. The firm expects Starbucks to report earnings at least in line with the Street mean EPS estimate of 42c. The analyst said domestic sales trends have been “solid” based on a review of mobile location data.
On April 21, Reuters reported that Starbucks said it would invest $100 million to establish a corporate office in Nashville to support expansion across the southeastern United States. The coffee chain said the Nashville office would complement its global and North America headquarters in Seattle. Over the next five years, the company expects to bring 2,000 support jobs to Nashville.
It said it plans to relocate some teams from Seattle to Nashville. Nashville-based jobs will include a mix of new roles and the replacement of contract workers with full-time staff, Starbucks said.
Starbucks Corporation is a roaster, marketer, and retailer of specialty coffee globally. Its North America segment includes the United States and Canada. Its International segment spans China, Japan, Asia Pacific, Europe, the Middle East and Africa, Latin America, and the Caribbean.
8. Ingredion Incorporated (NYSE:INGR)
Dividend Yield as of April 24: 2.91%
On April 22, Kristen Owen of Oppenheimer lowered the firm’s price recommendation on Ingredion Incorporated (NYSE:INGR) to $126 from $130. It reiterated an Outperform rating on the shares. The firm adjusted targets across the agriculture space as part of its Q1 preview. The analyst expects “healthy” Q1 results across coverage, pointing to stabilization trends before the outbreak of the Iran conflict. “Sentiment in the industry remains resilient, with all eyes on the potential for fundamentals to diverge as the effects of higher-for-longer energy and fertilizer prices ripple through our coverage,” the analyst said in a research note. Oppenheimer holds a cautious near-term stance on Ingredion.
During the Q4 2025 earnings call, CFO Jim Gray said the company expects modest growth in 2026. He indicated that full-year net sales are projected to rise in the low- to mid-single-digit range, supported by stronger volume demand. He also noted that both reported and adjusted operating income are likely to increase at a low single-digit pace over the same period. The company expects full-year adjusted EPS between $11 and $11.80, based on an estimated share count of about 64 million to 65 million. On cash flow, Gray said operating cash is expected to be between $820 million and $940 million. Capital expenditures are projected in the range of $400 million to $440 million.
Ingredion Incorporated is a global ingredient solutions provider serving customers in nearly 120 countries. The company processes grains, fruits, vegetables, and other plant-based materials into value-added ingredient solutions for food, beverage, animal nutrition, brewing, and industrial markets.
7. The Hershey Company (NYSE:HSY)
Dividend Yield as of April 24: 3.02%
On April 23, Morgan Stanley lowered its price recommendation on The Hershey Company (NYSE:HSY) to $227 from $247. It reiterated an Overweight rating on the shares. The firm is adjusting estimates across its packaged foods coverage to reflect recent trends. The analyst pointed to a more challenging forward commodity outlook following the recent move higher in oil.
On April 14, Barclays lowered its price objective on HSY to $225 from $240. It maintained an Equal Weight rating on the shares. The firm adjusted targets in the consumer staples group as part of a Q1 preview. Barclays noted “growing caution” in the group into the prints due to higher input costs. In food, there are “building concerns” around the sustainability of the dividend for certain companies, the analyst said in a research note.
The Hershey Company is a snacks business. Its segments include North America Confectionery, North America Salty Snacks, and International. The North America Confectionery segment supports its traditional chocolate and non-chocolate confectionery position in the United States and Canada.
6. Restaurant Brands International Inc. (NYSE:QSR)
Dividend Yield as of April 24: 3.20%
On April 21, RBC Capital raised its price recommendation on Restaurant Brands International Inc. (NYSE:QSR) to $90 from $83. It reiterated an Outperform rating ahead of Q1 results. The analyst said the company’s positive momentum continued through the quarter. Burger King and international segments have stood out in recent periods.
RBC noted that BK US still has room for improvement. Ongoing renovations, menu innovation, and more targeted marketing toward key demographics are expected to support progress. The firm also said Tim Hortons could start to feel pressure from slower population growth in Canada, though it continues to outperform the category.
Restaurant Brands International Inc. is a quick-service restaurant company. It franchises and operates restaurants that serve coffee, beverages, and food products. Its segments include Tim Hortons, Burger King, Popeyes Louisiana Kitchen, Firehouse Subs, International, and Restaurant Holdings.
5. The J. M. Smucker Company (NYSE:SJM)
Dividend Yield as of April 24: 4.57%
On April 21, Stifel lowered its price recommendation on The J. M. Smucker Company (NYSE:SJM) to $100 from $120. It reiterated a Hold rating on the shares. The analyst said food group earnings remain under pressure. Volume growth has been weak, and companies are spending more to support their brands, which is weighing on margins. Even after those investment cycles are through, sales growth may remain modest.
On April 14, Barclays lowered its price target on Smucker to $103 from $125. It maintained an Equal Weight rating on the shares. The firm adjusted targets across the consumer staples group as part of a Q1 preview. Barclays noted “growing caution” heading into earnings due to higher input costs. In food, there are “building concerns” around the sustainability of the dividend for certain companies, the analyst said in a research note.
The J. M. Smucker Company manufactures and markets branded food and beverage products worldwide. Its portfolio includes a range of brands sold mainly through retail channels across North America.
4. General Mills, Inc. (NYSE:GIS)
Dividend Yield as of April 24: 6.88%
On April 21, Stifel lowered its price recommendation on General Mills, Inc. (NYSE:GIS) to $40 from $44. It reiterated a Buy rating on the shares. The analyst said food group earnings remain under pressure. Weak volume growth is weighing on results. Reinvestment needs are also compressing margins, and sales growth may stay slower even after those investments are absorbed.
On April 14, BTIG initiated coverage of General Mills with a Neutral rating and no price target. The firm said the company’s growth fundamentals appear pressured. It also pointed to uncertainty around outcomes from the Remarkability playbook, a levered balance sheet, and a valuation that is not deeply discounted relative to U.S. food peers. The analyst added that growth reversion could support upside, though category positioning remains a concern.
General Mills, Inc. is a global manufacturer and marketer of branded consumer foods. Its segments include North America Retail, International, North America Pet, and North America Foodservice.
3. The Kraft Heinz Company (NASDAQ:KHC)
Dividend Yield as of April 24: 7.28%
On April 23, Morgan Stanley lowered its price recommendation on The Kraft Heinz Company (NASDAQ:KHC) to $22 from $23. It reiterated an Underweight rating on the shares. The firm is adjusting estimates across its packaged foods coverage to reflect recent trends. The analyst pointed to a more challenging forward commodity outlook, especially after the recent rise in oil.
On April 9, BNP Paribas lowered its price goal on KHC to $18 from $19. It maintained an Underperform rating on the shares. The firm said US packaged food valuations “look cheap relative to history,” but believes they are “cheap for a reason.” It lowered targets across the group to reflect volume growth that “looks to be muted at best” and pricing power that “could be somewhat illusory.”
The Kraft Heinz Company manufactures and markets food and beverage products globally. Its portfolio is organized across eight consumer-driven platforms: Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery products. The company reports two segments by geography: North America and International Developed Markets.
2. The Campbell’s Company (NASDAQ:CPB)
Dividend Yield as of April 24: 7.44%
On April 23, Morgan Stanley lowered its price target on The Campbell’s Company to $23 from $25 and kept an Equal Weight rating. The firm is revising estimates across its packaged foods coverage to reflect recent trends. The analyst pointed to a tougher commodity outlook, especially after the recent rise in oil.
On April 14, Rob Dickerson of BTIG initiated coverage of Campbell’s with a Neutral rating. The firm said category and brand positioning remain a factor. It also highlighted ongoing volume deleverage, cost inflation, execution disruptions, and mix. Taken together, these issues limit near-term top-line and margin recovery potential, the analyst said in a research note. BTIG added that leverage and tighter cash flexibility support the stock’s current discounted valuation.
The Campbell’s Company, formerly Campbell Soup Company, provides affordable food and beverages. It operates through two divisions, Meals & Beverages and Snacks, and manages a portfolio of about 16 brands.
1. Conagra Brands, Inc. (NYSE:CAG)
Dividend Yield as of April 24: 9.72%
On April 23, Megan Alexander Clapp of Morgan Stanley lowered the firm’s price target on Conagra Brands, Inc. (NYSE:CAG) to $15 from $17 and kept an Equal Weight rating. The firm is adjusting its estimates across packaged foods to reflect recent trends. The analyst pointed to a tougher commodity outlook, especially after the recent move higher in oil.
During the fiscal Q3 2026 earnings call, Executive VP and CFO Marberger reaffirmed expectations for Q4. He said the company is looking for positive organic net sales growth, in line with the midpoint of its full-year guidance. On margins, he expects an improvement from Q3 levels. Advertising and promotion spending as a share of sales should ease in Q4. The extra 53rd week is also expected to add some operating leverage. He also pointed to seasonal trade patterns, along with the timing of productivity efforts and inflation, as factors supporting margin improvement.
Conagra Brands, Inc. is a branded food company. Its segments include Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice. The Grocery & Snacks segment focuses on shelf-stable products sold across retail channels in the United States.
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