General Mills: A Reliable Dividend Paying Stock for Income Investors

General Mills is a leading food company with a solid dividend rate for income investors. The company sells its products internationally and has a strong presence in the US. Its dividend rate is a major draw for investors seeking stable income.

General Mills Inc. (NYSE: GIS), a leading food company, continues to attract investors with its solid dividend rate and international presence. The company recently reported its Q1 2025 earnings, providing insight into its financial health and future prospects.

Dividend Increase

General Mills announced a quarterly dividend of $0.61, effective on August 1, 2025. This represents a $0.01 increase from the previous quarterly dividend of $0.60, with an annualized dividend of $2.44 and a yield of 4.78%. The dividend payout ratio is currently 59.51%, indicating a balance between shareholder returns and reinvestment in the business [1].

Analyst Reactions

Analysts have mixed opinions on General Mills' stock. Wells Fargo & Company set an equal weight rating with a $53.00 price target, while Barclays reduced their target to $54.00 with an equal weight rating. Royal Bank of Canada raised their rating to outperform with a $63.00 target, and Stifel Nicolaus cut their target to $56.00 with a buy rating. The Goldman Sachs Group, however, reduced their rating to neutral with a $58.00 target [1].

Institutional Investor Activity

Allianz Asset Management GmbH sold 373,957 shares of General Mills in Q1 2025, reducing its holdings by 55.4%. The fund now owns 300,773 shares, representing 0.05% of General Mills' stock worth $17,983,000. Other institutional investors, such as Perkins Coie Trust Co and Transce3nd LLC, also bought shares in Q1 2025 [1].

Stock Performance

General Mills' stock has added about 1.2% in the past month, underperforming the S&P 500. The stock's 50-day moving average is $52.77, and the 200-day moving average is $56.68. The company has a market cap of $27.67 billion and a P/E ratio of 12.44 [1].

Future Outlook

General Mills plans to focus on innovation, marketing, and cost-saving initiatives in fiscal 2026, supported by a global transformation strategy. The company also expects to expand its product offerings, including the entry of Blue Buffalo into the fresh pet food space later in the year [2].

References

[1] MarketBeat. (2025, July 1). General Mills (GIS) Q1 2025: Dividend Increase and Analyst Reactions. Retrieved from https://www.marketbeat.com/instant-alerts/filing-allianz-asset-management-gmbh-sells-373957-shares-of-general-mills-inc-nysegis-2025-07-25/

[2] Yahoo Finance. (2025, June 15). General Mills (GIS) Q4 Earnings Beat Estimates, Sales Decline on Volume Pressure. Retrieved from https://finance.yahoo.com/news/general-mills-gis-1-2-153001507.html