Name of opportunity: 👀
General Mills
Dividends going up: ⬆️
The American consumer foods company, best known for breakfast cereals, has announced a 2% dividend increase to its shareholders. The quarterly dividend, payable 1 August 2024, is now US$0.60 a share.
However, this news arrives alongside Q4 earnings that reveal lower sales volumes. Analysts have said this indicates that consumers, and therefore grocery stores, are not ordering as much product from General Mills and other food companies - with higher prices of groceries being a key influence in this.
How hot is this investment opportunity? 🔥🔥
Over the full year, the company’s net sales decreased by 1% from the prior year, however in the fourth quarter the net sales decreased by 6%. General Mills Chairman and Chief Executive Officer Jeff Harmening acknowledged the company had recently experienced ‘a more challenging operating environment’ and said the brand had responded accordingly to prioritise its efficiency.
Overall, analysts are saying General Mills is a ‘Hold’ but some analysts are highlighting General Mills as a viable option for investors. Zacks Investment Research recently included General Mills in a round up of 4 stocks to watch that recently announced dividend hikes, noting that the company has announced dividend increases 4 times in the past 5 years, perhaps indicating that there will be more to come.
Analysts predict the price of General Mills, Inc. will increase from $64.52 to $71.12 in the next 12 months. If you invested $1000, you might profit $102.26.
Breakfast of champions: 🥣
General Mills’ history begins as a flour mill in Minnesota, United States. From there, the company began producing some of the biggest names in breakfast cereals such as Cheerios. It acquired other brands as it went, and now owns over 100 brands, with a presence in 100 countries over 6 continents. The majority of its business is conducted in North America. General Mills is involved in the snack foods, home baking and pet food spaces.
Which neme?: 🔍
‘Food & Drink’
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