New buy : General Mills

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.

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.

General Mills GIS Top Products

All General Mills brands are classified under one of five sections. The image below shows the breakout of GIS revenue by section.

General Mills GIS Category Segment Revenue

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 GIS - Eight Year Dividend History from 2009 to 2016

General Mills has paid dividends for 117 years! I’ll take my chances with a company with this dividend history.

I own 18 shares.

And you, what do you think about GIS? Do you think I can keep these company for a long long time?

 


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