You’ve seen the red and white cans forever. They’re basically a permanent fixture of the American pantry. But if you’re looking at Campbell Soup Company stock right now, things feel a little... weird.
The company isn't even technically "Campbell Soup Company" anymore—at least not at the corporate level. They officially rebranded to The Campbell’s Company last year. It’s a move to tell Wall Street they do way more than just chicken noodle. Think Goldfish crackers, Rao’s pasta sauce, and Cape Cod chips. But despite the fancy new name, the stock price has been taking a beating lately.
As of mid-January 2026, the stock is hovering around $26. That is a massive drop from where it sat a year ago. Honestly, if you’re a value investor, your ears probably just perked up. If you’re a growth chaser, you’re likely running for the hills.
The Dividend Trap or a Total Steal?
Here is the thing most people miss. Because the price has tanked, the dividend yield has shot up to nearly 6%. For a consumer staples giant, that is huge.
But is it safe?
💡 You might also like: $5000 Stimulus Check: Who Actually Gets the Cash (and Who Doesn't)
The payout ratio is sitting around 80%. That’s high. Kinda high enough to make you sweat if you’re looking for long-term stability. Usually, you want to see a company keeping more of its cash to reinvest. However, Campbell’s has been paying out for over 50 years straight. They just reaffirmed the $0.39 quarterly dividend, so management is clearly trying to keep the income crowd happy.
The market is skeptical, though. Fitch recently downgraded their debt, and several big banks like Morgan Stanley and BofA have lowered their price targets. They’re worried about "leverage"—which is just a fancy word for the company having too much debt after buying Sovos Brands (the Rao’s people) for $2.7 billion.
💡 You might also like: Who Can Garnish Your Wages: What Most People Get Wrong
Why the Stock Price Is Dragging
It’s a tough environment for soup. People are buying less "shelf-stable" stuff.
Specifically:
- Snacking is soft: The Goldfish and Snyder's-Lance brands aren't growing like they used to.
- Inflation and Tariffs: The company is getting hammered by the cost of cans and ingredients. They’ve estimated that new tariffs could eat up 4% of their product costs.
- Guidance is "Meh": For fiscal 2026, they're calling for an adjusted EPS of $2.40 to $2.55. That’s a significant step back from previous years.
The Rao's Factor
The bright spot? Rao's. Honestly, Rao’s is the only reason some analysts haven't completely given up on the stock. While traditional soup sales dropped about 2% last quarter, Rao's is still growing. They even just bought a stake in La Regina, the Italian company that actually makes the sauce, to secure their supply chain.
What Most People Get Wrong About CPB
Most folks think of Campbell Soup Company stock as a safe, boring "bond-proxy." You buy it, you forget it, you collect the check. But right now, it’s acting more like a turnaround play.
The CEO, Mick Beekhuizen, is basically betting the house that they can become a "Snacking and Premium Meals" company. If you buy in at $26, you’re betting that they can pay down that debt and that the 6% yield is worth the ride. If they can’t turn the snacking volume around by the end of 2026, that dividend might finally be on the chopping block.
Actionable Insights for Your Portfolio
If you are looking at this stock today, don't just look at the 52-week low and think "it's cheap." Cheap can get cheaper.
- Check the Debt-to-EBITDA: Watch their next earnings report in March. If that leverage ratio isn't coming down, the stock will stay stuck in the $20s.
- Watch the Snacking Volume: Don't just look at dollar sales (which go up because of price hikes). Look at how many bags of chips they are actually selling. If volume is down, consumers are tapped out.
- Income Strategy: If you're purely here for the dividend, realize you're taking on more risk than you would with something like Pepsi or Coca-Cola right now.
The "Soup" might be out of the name, but the company is still in some hot water. It’s a classic high-yield, high-uncertainty play. Whether it's a bargain or a value trap depends entirely on how much faith you have in Rao's sauce and Goldfish crackers to carry the weight of a $7 billion company.