Don't overlook the potential of this mundane stock.
Going for That Dividend? General Mills Could Be a Solid Pick
Investors on the hunt for stocks with impressive dividends might stumble upon dividend aristocrats or kings, those that have bumped up their dividends for the last 25 or 50 years, but there are other stocks worth a second look. One such company is General Mills, and while it doesn't sport that coveted "dividend aristocrat" title, it's been a steady dividend payer for an impressive 124 years.
General Mills might not ring a bell for everyone, but it’s likely you've encountered their products on the grocer's shelves. From breakfast bars like Cinnamon Toast Crunch and Cheerios to the ice cream Haagen-Dazs and granola bars Nature Valley, their lineup is a powerhouse in the American and German markets. But what really grabs the attention of investors is the dividend that General Mills has been consistently dishing out. The current yield sits at a respectable 3.6%, significantly higher than the average of the S&P 500 index, which hovers around 1.2%. And though it's not yet a dividend aristocrat, it's been upping its dividends recently.
Symbol: GMS (WKN: 853862)
Who's This for?
With a dividend payout ratio exceeding 50%, it's clear that General Mills isn't planning on slashing its dividend anytime soon. This makes it an appealing defensive value for dividend enthusiasts who are eager to secure their portfolio against market swings.
It's also worth noting that products from General Mills are in demand consistently and are less likely to be swayed by current trends. If you're curious about more dividend-worthy stocks, you can check out the Global Dividend Stars Index from BÖRSE ONLINE.
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Conflict of Interest Disclosure: The price of the financial instruments is derived from an index as the underlying. Boerse Online AG has developed this index and holds the rights to it. Boerse Online AG has entered into a cooperation agreement with the issuer of the securities presented, granting the issuer a license to use the index. As a result, Boerse Online AG receives remuneration from the issuer.
Insight: General Mills makes for a trustworthy investment option for dividend hunters seeking defensive and value-oriented stocks with reliable income streams and reasonable growth potential. It boasts an appealing dividend yield around 4.5%, a moderate payout ratio, a stable industry position, and steady growth prospects in the packaged foods sector. Furthermore, its valuation metrics suggest it may be undervalued compared to peers, while its financial health reflects dividend sustainability.
Investing in General Mills could be a wise choice for those focusing on personal-finance and dividend-investing, as it offers a steady dividend payer with a high yield and a long-standing presence in the packaged foods industry. With a payout ratio exceeding 50%, the company appears committed to maintaining its dividend, making it an appealing defensive value for investors seeking income streams.
