Campbell's (NASDAQ: $CPB), the iconic soup company, is a small-cap stock that offers investors a large and secure dividend payment.
Founded in 1869, Campbell's today continues to make dozens of different soups. However, the company has expanded into TV dinners, pasta sauce, salsa, and snacks in recent years.
Despite its status as a household name, Campbell's stock has struggled in recent years. As one might expect, selling soup during an artificial intelligence (A.I.) revolution is not a sexy business.
After getting a bounce during the onset of the pandemic as people hoarded supplies, including soup, CPB stock has struggled in recent years.
Campbell's share price has declined nearly 60% in the last five years and is now trading at a 32-year low.
However, the decline has made CPB stock both extremely cheap and given it a monster dividend payment.
Campbell's currently pays a quarterly dividend of $0.39 U.S. per share, giving the stock a yield of 7.41%, one of the highest among publicly traded companies today.
The dividend also looks sustainable as the company's $692 million U.S. in free cash flow easily covers the distribution to stockholders.
CPB stock is also cheap, trading at 11 times this year's earnings estimates. That's about half the current price-to-earnings ratio of companies listed in the S&P 500 index.
Campbell's stock has literally never been this cheap in its history, and its multiple is significantly lower than richly valued technology stocks with exposure to A.I.
For investors in search of safety who want a cheap stock that offers steady and reliable income, Campbell's could fit the bill.
COMTEX_482685747/2797/2026-06-02T14:22:26