Thursday, July 1, 2010

Haagen-Dazs maker sweetens payout

The maker of Cheerios, Yoplait Yogurt, & Green Giant Corn among several other popular food brands has raised their dividend an impressive 17%. General Mills (GIS) is now paying $0.28 per share and the stock currently yields 3.2%. The company also laid out a 5 year growth plan that includes growing their earnings by 45% from current levels. They are counting on sales in emerging markets such as Russia, China, and India for some of that growth.

Considered a defensive stock, the company generates returns on equity of 28% and has grown their dividend and earnings very consistently over the past ten years. Their net profit margins have also held up fairly well over the years. A reduction in debt levels might make the company even more attractive going forward. Needless to say General Mills is definitely my type of stock.


Dividend Growth Investor said...

Your article title made me research whetehr Haagen-Dazs is a separately traded company.. After I read the post I realized it is not.. But I could always research General Mills instead..

Financial Cents said...

General Mills works for me as well!

US:GIS has been a steady dividend riser over the last few years...