Tuesday, June 26, 2012
Dividend Increase: GIS
General Mills (GIS) is increasing its quarterly dividend by 8.2%, from $0.305 to $0.33 per share, putting the company on track for its 9th consecutive year of dividend growth. Given that I own 70 shares of GIS, my quarterly dividend increases from $21.35 to $23.10, which will add an extra $7.00 to my annual dividend income. This dividend increase also boosts my yield on cost to 3.36%. Thus far this year, there have been dividend increases for 16 of the 22 dividend growth stocks in my portfolio.
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Another very solid increase from one of your holdings! GIS is definitely one company I'd like to own a piece of, but do not yet. It's not a headline stock, but slow and boring...which is right up my alley.
Hi Dividend Mantra,Delete
I am quite pleased with this increase -- it is larger than I expected. I also like boring companies that are steady and dependable, and GIS certainly fits in that category.
This is a solid increase. $7 doesn't sound like much annually, but I like your YOC for just holding on.
Do you ever worry about GIS selling off a brand (or brands) to a competitor and how that might affect the long term positioning of the company?
Hi Dividend Maven,Delete
Thanks for your comment. I agree that $7 doesn't sound like much, but I also realize that it takes time to build up the power of compounding. Annual increases of 8% will turn into much larger dollar increases years from now.
I don't worry about GIS selling off brands. If they do, it will likely be for strategic reasons that are thought by management to be in the best interests of the company and shareholders. I'm fairly confident in the management at GIS.
Appreciate the reply!Delete