General Mills Could Be A Good Dividend Pick For Bargain Hunters
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Eric Novinson201 FollowersFollow5ShareSavePlay(12min)CommentsSummaryGeneral Mills is rated a buy, appearing undervalued with a 5.02% forward yield and defensive, recession-resistant positioning.Recent results are distorted by the $2.1B yogurt divestiture and government program cuts; underlying fundamentals remain more stable than GAAP figures suggest.Growth in the pet food division, especially through Blue Buffalo's fresh offerings and the Whitebridge acquisition, could stabilize margins and offset headwinds.GIS can sustain its dividend despite weaker margins, prioritizing payouts over buybacks, with a target price 10% above current levels at $54 per share. JHVEPhoto/iStock Editorial via Getty Images General Mills (GIS) is another one of the large CPG companies that might not be considered very exciting. Right now, it has a 5.02% forward yield, which is better than the yield on a Treasury bond. This companyThis article was written byEric Novinson201 FollowersFollowI am a freelance business writer. I formerly wrote articles for the Motley Fool Blogging Network, where I won several editor's choice awards. After that, I wrote articles for the main Motley Fool site. I typically focus on restaurants, retailers, and food manufacturers, considering both growth opportunities and valuation metrics. I usually look for long term investment opportunities and plan to hold stocks for several years.Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.