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Recent Buy – General Mills (GIS)

General Mills Logo (GIS-2)I can’t believe it has been so long since I made a purchase. My last stock purchase was back in early May. Had a few big expenses hindering my purchases since then, but it is nice to be back on track and making some moves in my portfolio. Last week I hinted at making a new purchase in my June 2017 Stock Poll Results. I selected one of those 8 stocks from the poll that I thought had great value at these prices and picked up a few shares. If you haven’t already figured it out, I purchased 9 shares of General Mills (GIS) at $56.59. You can find more info on GIS below.

 

GIS Stats
Annual Dividend: $1.92
Yield: 3.42%
Years Paying/ Increasing: 13 years
Dividend increase from prior year: 8.33%
Payout Ratio: 62.7%
P/E Ratio: 20.83
EPS: $2.70

 

I already had GIS in my portfolio before this buy. Actually, they were the first stock I purchased since starting this site so I am happy to finally be able to add to my position. You can find the details of the first buy here. The reasons for adding more to my current position are the same as buying them in the first place. Since I have already posted about that, feel free to review that post. Comes down to great dividend yield, history of increasing dividends, good financials, and manageable payout ratio. This new buy will also lower my overall cost basis. As shown in the results of the poll, GIS is very popular amongst the DGI community, ranking 3rd from the list of 8 choices. Only losing by 2 votes to the winner CSCO.

 

With these new shares, I now own 25 (not including any partials from dividends already reinvested) in my portfolio. As shown above, GIS has a dividend yield of 3.42% or $1.92 annually. This will add another $17.28 to my yearly dividend income.

 

What do you think of this buy? Do you like GIS and do you currently own any? Do you have any other companies that are on your watch list or any other companies you would choose over them?

 

34 Responses to “Recent Buy – General Mills (GIS)”

  • Great buy! You definetely got a better price than me @ $58,83. 🙂

    Oh well it will bring you lots of nice dividend in the future!
    Mr. Robot recently posted…This is my second (and last) buy for June 2017My Profile

    • Dividend Daze:

      Haha good thing it isn’t a competition. If it were, then there would be tons of people beating me as well. The important thing is you made a quality buy. And it will add some nice dividends for the future as you mentioned.

  • Ah, you beat met to it. I was definitely thinking about adding GIS to my portfolio. The only difference is, I never owned it in the first place.

    I think you made a great buy for the reasons you cited. They are also the reasons why I like GIS. I also like CSCO by the way.
    Dividend Portfolio recently posted…Acorns – Invest Your Spare ChangeMy Profile

  • Good buy. I love GIS – it’s a “boat anchor” for my portfolio. I’ll buy more if it’s yielding 3.6%, which could happen soon with a likely dividend hike happening this week and/or further decline in the stock price.
    Dividend Meter recently posted…May 2017 Dividend Meter UpdateMy Profile

    • Dividend Daze:

      GIS is for sure a solid company to have in a portfolio. I am just glad the price dipped a little bit in order to pick up more. Always a quality choice to add more to for the long term. Would love to see the yield go a little higher and dividend increases are always welcome! Thanks for stopping by and commenting.

  • I would say it’s a good buy. Cereals, snacks etc are going to be there in the near future. I see growth possibilities in this domain. I don’t own any of GIS myself.
    dividendgeek recently posted…2017 Q2 / June Dividend updateMy Profile

  • I am happy to see that dgi people buy gis. I have an option position open. It is an indication that it is a good stock at this price.

    • Dividend Daze:

      I agree. It has been getting a lot of attention lately. That whole sector in general really. I see it in a lot of portfolios. Good history and dividend increases/ payments. Should be a great long term hold if you can snag some at these prices. I appreciate your comment.

  • Seems like a good buy, I don’t own any myself but maybe I should. Industries like the taxi industry may get disrupted by new technologies, but can’t see cereal changing much in my lifetime.
    MrSLM recently posted…Financial Update – May 2017My Profile

    • Dividend Daze:

      That is one of the reasons I like that sector. The industry doesn’t change much and if it does, not very fast. They will also make money no matter the state of the economy. Thanks for stopping by and commenting.

  • Nice buy for sure. General Mills is a great company based here in the Twin Cities.. I have a lot of friends working for them who really think the company is great.
    Erik @ The Mastermind Within recently posted…You’re Right Where You’re Supposed to BeMy Profile

    • Dividend Daze:

      That is great news that the employees also enjoy working for them. That is usually the sign of a good company. It also holds true for companies like Google or Amazon I imagine. Hopefully your friends get stock options. Always nice to see you drop by and comment. Thanks!

  • It’s a good buy in my view. A very solid company and the share price has fallen to a level that seems to be a support also from a technical point of view. I don’t really see it falling much further as the closer we get to 4% yield, the bigger bargain it’ll be and more buyers would come. The payout ratio is a bit high though, but as you said it’s still manageable.
    Roadrunner recently posted…The Dutch 30% Ruling and Why You Must Save All of ItMy Profile

    • Dividend Daze:

      I completely agree. I have been watching the price ever since I initiated a position. It dropped a bit more so I can help the cost basis. But I don’t see it falling much further either so I’ll buy it while I can. Payout ratio is a big high but not overwhelming. They are still in a good position for growth and dividends. Glad you like the buy, I value you opinion. Thanks for the comment.

  • Joshua Kennon did a review of their history in the past:

    https://www.joshuakennon.com/a-26-year-case-study-of-general-mills/

    Thought I’d share as it was a great case study. We’ve been currently looking into Target, Under Armour, Exxon Mobile, Kroger, or Visa as potential opportunities.
    Master Duke recently posted…How Much Does Committing Love With Diamond Engagement Rings Really Cost?My Profile

    • Dividend Daze:

      That is very interesting. Thank you for the link. There is a lot of value in the market right now surprisingly. I bought some TGT on the last dip. The price is even better now. I like the UA brand but don’t know if I would buy the stock. Probably prefer Nike instead, which usually you recommend I believe? XOM is always a classic but I’m overweight on that sector so I’ll hold off. It was actually between GIS and KR for this buy but KR is getting a lot of traction in the community right now. I see Visa as more of a growth stock than a dividend stock. But either way, it is a solid hold in the long term. Looking forward to seeing what you buy next.

  • I like this move. I’m still watching GIS as share prices remain beaten down. I added enough to the stock in recent months which is why I went pharma/biotech in June but GIS is on my radar. Nice pick up.
    DivHut recently posted…Recent Stock Purchase June 2017My Profile

    • Dividend Daze:

      Thanks DH. I noticed you kept making small moves on it every now and again. The price has gone down even more since my buy. Not sure how much lower it will go, but always worth a look and to keep on the watch list. Never hurts adding more of this sector to the portfolio. Thanks for the comment.

  • SMM:

    Love me some honey nut cherrios. They are a great company and have a lot of variety and are always changing things up/taking on appropriate risk in their product line. Good buy I say 🙂
    SMM recently posted…Rich & Famous People with Smart & Dumb Money HabitsMy Profile

    • Dividend Daze:

      Thanks, I like the buy as well. Comes at the perfect time too as they just announced a dividend increase. Should be a great hold for the long term. Thanks for your comment!

  • Loving it. GIS is such a great company and I´m glad that we can own another stock together =)
    Stockles recently posted…How To Travel The World On A BudgetMy Profile

    • Dividend Daze:

      Always a great thing to own similar companies to you and others from the community. Thanks for stopping by and commenting!

  • I’m a big fan of General Mills. I don’t see them going away anytime and they have a large moat. Great pick.
    Mustard Seed Money recently posted…What Does Freedom Mean to You?My Profile

    • Dividend Daze:

      That is the hope. Keep their dividend streak going for the long term and take advantage of the compounding. As always, I appreciate your comment.

  • Big fan of GIS and I love consumer staple stocks. I would consider adding if I had more excess capital lying around. nice pickup and your long term portfolio will be thanking you!

    Bert
    Dividend Diplomats recently posted…Lanny’s June Dividend Income SummaryMy Profile

    • Dividend Daze:

      Thanks Bert. I like GIS too, glad I was finally able to add to my current position. It was a tough decision between them or buying KR. Went with the former to lower its cost basis. I also love the consumer staple segment. Thanks for your comment!

  • Nice daze great pickup. Its gotten beaten down since i purchased it but longterm its gonna be great! (Tony the tiger)
    Cheers
    Passivecanadianincome recently posted…June 2017 Dividend IncomeMy Profile

    • Dividend Daze:

      Haha love the cereal pun. It has gotten beaten down even more lately. I want to pick up even more but think I may choose something else instead. Thanks for stopping by and commenting!

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