Today, The Campbell’s Company "reset" their dividend to $0.25/quarter/share, a reduction of 36% from the prior level. Let's call it what it really is: It's a dividend cut. This is unfortunate to see, as I thought they had a chance of pulling through at their prior level. At the new rate, I get a current yield of ($0.25*4)/$22.13=4.5%. Because of this, I plan to stop accumulating more shares, for my personal situation. At "only" 4.5%, I see superior income-generating assets (there are many higher-quality companies in the ~4.5% range, which takes $CPB off my buy list). I plan to hold my existing position, which represents about ~0.67% of my dividend portfolio's value. I still have long-term confidence in the holding, but I'm just not excited about adding more after this dividend cut. I plan to cover my thoughts on this topic in an upcoming video. At a very high level, this is a reminder that deep value/turnaround investing does come with the reality that dividend cuts can occur. It's a reminder about the power of diversification and prudent capital allocation. (Disc: I'm long $CPB. Not investment advice.) https://www.thecampbellscompany.com/newsroom/press-releases/campbells-reports-fourth-quarter-fiscal-2026-results/
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