The soup has gone cold, or at least that's what The Campbell's Company (NASDAQ: CPB) stock has felt like over the past few years. Shares of Campbell's have fallen nearly 30% in the past 12 months, and almost 50% over the last five years. The bear case is simple: Sales are falling, margins are compressing, and tariffs created an unexpected headwind for the business.
Still, I think this more than a century-old consumer staples company is a buy for long-term investors. First, at the current share price, Campbell's dividend yield is nearly 7%. It offers a consistent quarterly payout of $0.39 per share.
Campbell's funds its dividend with stable cash flow from operations. The consumer staples company reported $839 million in cash generated over the first nine months of its fiscal 2026. Despite tough economic conditions, the dividend isn't at risk.
This Rare Signal Is Flashing Again. In 2009, a "Double Down" signal flashed for a little-known chipmaker called Nvidia. For the first time in years, that same "Total Conviction" signal is flashing for a company 1/100th the size of Nvidia.
Continue » The stock is also relatively cheap, as it trades at a forward P/E of 12, a trailing P/E ratio of 11, and a PEG ratio of less than 1. In June, Campbell's was added to both the Russell 2500 and Russell 2500 Value indexes, potentially improving investor confidence and visibility. More importantly, Campbell's management has a turnaround effort underway.
The company bought Sovos Brands, the owner of the hugely popular Rao's Homemade sauce and pasta brand, back in 2024, and took a 49% stake in La Regina -- the company that manufactures Rao's products -- late in 2025. This has been a growth bright spot for Campbell's. Rao's recently topped $1 billion in annual net sales.
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