Please assign a menu to the primary menu location under MENU

Recent Buys

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?

 

36 Comments

    1. 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.

    1. I was torn with this purchase. Was really considering opening a position with KR since it has dropped so much. But decided to go with GIS instead. Either way it is a win. So do you think you will go with GIS or CSCO in your next buy?

    1. 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.

    1. Consumer staples like this seem to be a solid choice for long term dividends. No matter what the economy state, people still need to eat. Are you thinking about buying some GIS in the future or do you have something else in mind on your watch list?

        1. Doesn’t look like a bad buy if you do decided on it. Got a bunch of great names in the top 10 list of stocks for the ETF. Can never go wrong with Vanguard with their low expense ratios. Would it help your diversification or would you be better off just keeping your money in an S&P500 fund?

    1. 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.

    1. 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.

    1. 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!

  1. 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

    1. 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.

    1. 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.

    1. 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.

    1. 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!

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

    1. 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.

    1. 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!

    1. 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!

  2. GIS is a great company, however they have run into some challenges recently as they are somewhat behind in moving towards organic and more natural branded foods that appeal to younger generation. Their yogurt business has been in a decline for sometime and losing market share to smaller companies.

    Regardless, they will manage to recover through some M&As of smaller brands/companies. I even heard some talks about them getting bought by a bigger food company.

    GIS has been on my watchlist for sometime, but I’m not going to buy it unless I get a yield in the neighborhood of 4%. Given that the dividend growth has slowed down to 2.1%, I want a higher yield.
    Mr. ATM recently posted…My Half Year Stock Buy Performance AnalysisMy Profile

    1. I agree yield is important as is growth rate. I like that it is upwards of 3% right now but could be higher. They have hit some trouble recently but I’ll use it as a good entry point as well as adding to my shares.

      Haven’t heard any talks about them getting bought out. That is interesting. But their background and history is solid so I believe they will still continue to be around for a while. And their payout ratio should secure the dividends for a while. Thanks for stopping by and commenting. I always appreciate your analysis.

Leave a Response

CommentLuv badge