In our current market, finding deals on quality stocks has been a tough task. The past 60 days, we’ve seen some segments start to pull-back. I don’t see a ton of value in the market, but there are a handful of stocks I’ve been watching and buying as their stock prices have declined. I recently bought shares of Hormel Foods Corp. Today I bought General Mills GIS stock.
General Mills is one of my watchlist stocks. I attempted to buy 100 shares through a cash secured put I sold a few months ago, but the strike price was higher than my contract so the option expired worthless. I did capture $50 in premiums though.
On February 17th, General Mills announced that 2017 organic net sales are expected to decline approximately 4 percent. This announcement helped to cut GIS stock price by 6%. I decided that the stock price today is in my buy zone. I bought 50 GIS share at $58.18 per share, totaling $2,909. This new stock will increase my annual dividends by $96. This new income should push me to my 2017 goal of $7,500 in annual dividends.
General Mills Foods Business Summary
General Mills, Inc. is a manufacturer and marketer of branded consumer foods sold through retail stores. The Company is a supplier of branded and unbranded food products to the North American foodservice and commercial baking industries. The Company has three segments: U.S. Retail, International, and Convenience Stores and Foodservice. Its products are marketed under various brands, which include Annie’s and Betty Crocker. The Company’s U.S. Retail segment reflects business with a range of grocery stores, mass merchandisers, membership stores, natural food chains, drug, dollar and discount chains, and e-commerce grocery providers operating throughout the United States. The International segment consists of retail and foodservice businesses outside of the United States. The Convenience Stores and Foodservice segment’s product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes. Source: www.schwab.com.
General Mills Brands
General Mills started selling consumer products in 1880, well one product, Gold Medal Flour. Fast forward to today, General Mills sells more than 100 brands in more than 100 countries. Sounds like a lot, a hint – it’s not just flour and cereal. The image below is a list of many of General Mills most recognized brands.
All General Mills brands are classified under one of five sections. The image below shows the breakout of GIS revenue by section.
General Mills Dividends and Growth
- Annual Dividend Yield of 3.33%
- 5 Year Average Dividend Yield of 2.90%
- Annual Dividend Rate (IAD) $1.92
- Payout Ratio (TTM) of 69.61%
- Dividend Coverage Ratio (TTM) of 143.66%
- 5 Year Dividend Growth Rate of 9.7%
- 10 Year Dividend Growth Rate of 10.3%
General Mills has been consistently paying dividends for a very long time. The chart below shows GIS dividend payments since 2009. The chart illustrates the company’s commitment to shareholder through dividend payments.
General Mills has paid dividends for 117 years! I’ll take my chances with a company with this dividend history.
GIS Stock Activity
GIS has been a popular pick on many bloggers radar screens lately. The following bloggers have bought General Mills stock recently. Checkout their links below.
My Dividend Pipeline
Well Rounded Investor
Do you own GIS stock? If not, is it n your watchlist? Which stocks are you watching?