In this article, we will take a look at the 5 Cheapest Stocks with Highest Dividends. For deeper discussion and analysis, have a look at the 15 Cheapest Stocks with Highest Dividends.
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5. General Mills, Inc. (NYSE:GIS)
Dividend Yield as of April 4: 6.52%
Share Price as of the Close of April 2: $37.42
Forward P/E Ratio: 11.04
On March 30, Deutsche Bank lowered its price recommendation on General Mills, Inc. (NYSE:GIS) to $32 from $38. It reiterated a Hold rating on the stock. The firm said it is seeing “legitimate and widespread pressures building” across much of the consumer packaged goods industry, tied to the conflict in the Middle East. The analyst noted that stocks in the group underperformed in March. The decline was linked to rising cost inflation, the risk of demand shifting toward cheaper products, and unfavorable currency movements.
On March 25, TD Cowen lowered its price objective on GIS to $32 from $37 and maintained a Hold rating. The firm also reduced earnings estimates and price targets across several large-cap food companies. This reflects expectations of higher input costs linked to the Iran war, along with limited pricing power. The analyst noted that many food companies are now focusing more on reducing debt. This follows significant margin pressure seen in 2025. The firm added that for a number of these companies, including Conagra Brands, Campbell’s Company, and General Mills, dividends could come under pressure if conditions worsen, adding that “things aren’t looking good.”
General Mills, Inc. (NYSE:GIS) is a global manufacturer and marketer of branded consumer foods. Its segments include North America Retail, International, North America Pet, and North America Foodservice.
4. The Kraft Heinz Company (NASDAQ:KHC)
Dividend Yield as of April 4: 7.02%
Share Price as of the Close of April 2: $22.79
Forward P/E Ratio: 10.86
On March 25, TD Cowen analyst Robert Moskow lowered the price recommendation on The Kraft Heinz Company (NASDAQ:KHC) to $20 from $24 and maintained a Hold rating. The firm also reduced earnings estimates and price targets across several large-cap food companies. This reflects expectations of higher input costs tied to the Iran war, along with limited pricing power. The analyst noted that many food companies are now prioritizing debt reduction after margin pressure in 2025.
During the company’s Q4 2025 earnings call, management said the planned $600M investment will be spread across pricing, product development, packaging, and capability building. About half of that investment is expected to go toward strengthening brands and consumer-facing initiatives. They said they expect trends to improve in the second half of the year. The goal is to exit 2026 in a stronger position and set up organic growth in 2027.
CEO Steven Cahillane indicated that the company is working toward returning to growth by 2027. Management also pointed to potential pressure from SNAP-related factors, estimating a headwind of around 100 basis points. They said this would be addressed through adjustments in pricing strategies and pack sizes. On capital allocation, management said excess cash will first be reinvested into the business, followed by debt reduction. Share buybacks would only be considered after leverage targets are met.
The Kraft Heinz Company (NASDAQ:KHC) manufactures and markets food and beverage products globally. Its portfolio spans multiple consumer-focused platforms, including Taste Elevation, Easy Ready Meals, Substantial Snacking, Desserts, Hydration, Cheese, Coffee, Meats, and other grocery categories.
3. The Campbell’s Company (NASDAQ:CPB)
Dividend Yield as of April 4: 7.09%
Share Price as of the Close of April 2: $22.01
Forward P/E Ratio: 9.58
On March 30, Deutsche Bank lowered its price recommendation on The Campbell’s Company (NASDAQ:CPB) to $20 from $23 and kept a Hold rating. The firm said it is seeing “legitimate and widespread pressures building” across much of the consumer packaged goods industry, driven in part by the conflict in the Middle East. The analyst pointed out that the group underperformed in March. Rising input costs, the risk of consumers trading down, and currency headwinds all weighed on the stocks.
During the company’s fiscal Q2 2026 earnings call, CFO Todd Cunfer said Q3 is expected to track broadly in line with Q2. He added that Q4 should see a typical step-down, aligning with the roughly $0.90 needed in second-half earnings to reach the midpoint of guidance. Management said Snacks’ net sales are likely to decline by about 4% in the second half.
Margins are expected to improve in Q4, though without a meaningful sequential increase in net sales. They also noted that pricing in Meals & Beverages should remain positive through the second half, but at a slower pace than earlier in the year. This reflects continued investment in broth and Rao’s.
The Campbell’s Company (NASDAQ:CPB), formerly Campbell Soup Company, provides affordable food and beverages. It operates across two divisions, Meals & Beverages and Snacks, supported by a portfolio of about 16 brands.
2. Conagra Brands, Inc. (NYSE:CAG)
Dividend Yield as of April 4: 8.91%
Share Price as of the Close of April 2: $15.72
Forward P/E Ratio: 8.53
On April 2, Evercore ISI lowered its price recommendation on Conagra Brands, Inc. (NYSE:CAG) to $18 from $19. It reiterated an In Line rating on the shares. The firm said Conagra is putting more emphasis on cash flow and protecting profits. Organic sales trends have started to improve, but FY27 earnings power is “still feeling the squeeze” from input cost inflation and a weaker contribution from Ardent Mills.
On the same day, RBC Capital also reduced its price goal on Conagra to $17 from $20 and kept a Sector Perform rating. The firm said the company delivered a fairly straightforward Q3. Organic sales growth came in slightly ahead of expectations, even as underlying consumption remained soft and the operating backdrop stayed challenging. The analyst pointed to modest volume growth, some share gains, and strong performance in snacks and frozen categories as key drivers.RBC noted that cost pressures could increase if geopolitical tensions persist.
Conagra Brands, Inc. (NYSE:CAG) is a branded food company. It operates across Grocery & Snacks, Refrigerated & Frozen, International, and Foodservice segments. The Grocery & Snacks segment includes branded, shelf-stable food products sold across retail channels in the United States.
1. Rithm Capital Corp. (NYSE:RITM)
Dividend Yield as of April 4: 10.38%
Share Price as of the Close of April 2: $9.63
Forward P/E Ratio: 4.12
On April 2, Piper Sandler lowered its price recommendation on Rithm Capital Corp. (NYSE:RITM) to $14 from $15 and maintained an Overweight rating. The firm said the first quarter was a “tale of two halves” for the mortgage sector. Rates improved steadily through February, reaching 5.98%. More recently, volatility pushed them back up to nearly 6.38%.
Agency MBS spreads followed a similar pattern. They tightened by 15 basis points to 75 basis points over the 10-year Treasury on positive GSE purchase commentary, then widened by more than 25 basis points to above 100 basis points. The firm linked this shift to volatility tied to the Iran war and changing inflation expectations. Mortgage application data held up through mid-March but has started to slow in recent weeks. Applications still rose 18% sequentially during what is typically a slower seasonal quarter, supported by both purchase and refinance activity.
Rithm Capital Corp. (NYSE:RITM) is a global asset manager focused on real estate, credit, and financial services. It makes direct investments and operates several wholly owned businesses. Its segments include Origination and Servicing, Investment Portfolio, Residential Transitional Lending, and Asset Management.
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