This High-Yield Dividend Stock Could Deliver in a Downturn
General Mills, Inc. (NYSE:GIS) is a global producer and distributor of well-known packaged food brands. Its wide-ranging product lineup includes cereals, yogurt, soups, meal kits, snack and nutrition bars, ice cream, frozen pizzas, pet food, and more.
Although founded in 1866, the company didn't fully pivot to consumer foods until 1995. Today, it's among the largest food manufacturers, with a market value exceeding $29 billion. The company's consistent investment in advertising and product development has helped it reach more than 95% of U.S. households and lead in several food categories.
General Mills, Inc. (NYSE:GIS) has shown resilience during economic downturns. For example, in 2010, it posted record results, including increased net sales, higher gross margins, growth in operating profit across segments, and strong cash flow.
A key factor in its stability is its reliable dividend. General Mills, Inc. (NYSE:GIS) has maintained consistent dividend payments for an impressive 126 consecutive years, even during some of the most difficult economic periods. This dividend stability comes from its stable cash position. In the first nine months of FY25, the company generated an operating cash flow of $2.3 billion, and it returned $1 billion to shareholders through dividends.
On top of that, General Mills, Inc. (NYSE:GIS) has a dividend yield of 4.5%, which analysts and investors view as particularly appealing within the packaged food industry.
While we acknowledge the potential of GIS as an investment, our conviction lies in the belief that some deeply undervalued dividend stocks hold greater promise for delivering higher returns, and doing so within a shorter time frame. If you are looking for a deeply undervalued dividend stock that is more promising than GIS but that trades at 10 times its earnings and grows its earnings at double digit rates annually, check out our report about the .
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