Campbell’s Cuts Quarterly Dividend 35.9% to $0.25

The Campbell’s Company cut its quarterly dividend 35.9% to $0.25 a share from $0.39. The new payment went ex-dividend on October 1, 2026, and is scheduled for November 2, 2026.

Why the dividend changed

Campbell’s said the reset would accelerate debt reduction and strengthen its balance sheet. The decision followed a difficult fiscal 2026 in which management cited softer sales, inflation-driven margin pressure, tariffs and other supply-chain costs. Chief Executive Mick Beekhuizen said the company’s performance was “not where it needs to be” and included the dividend reset among actions intended to reduce leverage and improve the business. Campbell’s fiscal 2026 results

The operating results explain the timing. Full-year net sales fell 5% to $9.7 billion, while adjusted EBIT fell 21% to $1.2 billion and adjusted earnings per share fell 27% to $2.17. Cash flow from operations declined to $1.0 billion from $1.1 billion. Fourth-quarter organic sales fell 1%, with a 6% decline in Snacks offset in part by 3% growth in Meals & Beverages. Campbell’s SEC-filed results

Management is coupling the dividend reduction with a new enterprise-wide savings program targeting $500 million by fiscal 2030. It expects fiscal 2027 organic net sales to fall 4% to 2%, adjusted EBIT to fall 12% to 7%, and adjusted earnings per share to fall 24% to 17%, to a range of $1.65 to $1.80. Campbell’s said the outlook assumes another year of elevated inflation. The recently acquired La Regina business is expected to provide a modest sales benefit and have a neutral effect on adjusted earnings per share. Campbell’s fiscal 2026 results

Dividend track record

The cut follows seven consecutive quarterly payments of $0.39 from January 2, 2025, through July 2, 2026. The October 1, 2026, ex-dividend payment at $0.25 therefore represents a clear break from the recent payment pattern rather than a minor adjustment.

Annual distributions show that growth had already been intermittent. Campbell’s paid $1.40 a share in 2020 and $1.48 in 2021, an increase of 5.7%. The total then remained unchanged at $1.48 in 2022, 2023 and 2024. It rose 5.4% to $1.56 in 2025. The five-year record amounts to 2.2% annual growth, while the consecutive growth streak stood at 1 year. The last annual cut was in 2002, making the current quarterly reset a significant departure from more than two decades without a lower annual distribution.

At the new rate, the annual dividend is $1.00 a share. An investor holding 100 shares would receive $100.00 in annual income if the quarterly rate remains unchanged.

Is the dividend covered?

The earnings payout ratio is 119%. That indicates the dividend represented more than reported earnings under the measure used, a level that provides limited earnings coverage and helps explain management’s decision to retain more cash for debt reduction.

SmarterDividends gives Campbell’s a dividend safety score of 76 and rates the dividend B, meaning safe within its 66-79 range. The grade indicates that the reduced payment has relatively solid overall support, but the 119% earnings payout ratio remains a point of tension. No free-cash-flow payout ratio is included in the assessment.

Yield and valuation

The new annual dividend produces a 5.04% forward yield at a share price of $19.49. That remains above the Consumer Defensive sector median forward yield of 3.22%, even after the reduction. The higher yield reflects both the continuing cash distribution and a 35.7% share-price loss over the past year.

SmarterDividends estimates fair value at $27.96 and classifies the shares as undervalued. The difference from the current price represents 41% upside to that estimate. This is a valuation comparison, not a forecast of the share price or a judgment about the timing of any recovery.

What to watch

The next concrete dividend event is the $0.25 payment scheduled for November 2, 2026. With no subsequent ex-dividend date set, the next board declaration will show whether Campbell’s maintains the reset quarterly rate.

Operating performance will determine how quickly the lower cash commitment translates into stronger coverage and debt reduction. The next earnings update will provide evidence on fiscal 2027 guidance, particularly the expected sales and profit declines, progress in Snacks and the cost-savings program. Cash generation, leverage and the integration of La Regina are also relevant because management explicitly tied the dividend decision to balance-sheet improvement. Campbell’s fiscal 2026 results