April 20, 2025 a 12:46 pm
📊 GIS: Dividend Analysis - General Mills, Inc.
General Mills, Inc. presents a promising dividend profile with a robust history of dividend payments. Its notable financial stability and consistent dividend growth over the years make it an attractive choice for income-focused investors. While the growth pace is moderate, the reliability and continuity are key strengths, ensuring investors a stable income stream.
🗣️ Overview
General Mills operates within the Consumer Staples sector, providing a stable dividend yield of 4.20%. With a remarkable 43 years of consecutive dividend payments, the company displays a strong commitment to returning value to shareholders. Recent data show no cuts or suspensions, reinforcing their reliable cash flow management.
| Metric | Value |
|---|---|
| Sector | Consumer Staples |
| Dividend Yield | 4.20% |
| Current Dividend Per Share | 2.37 USD |
| Dividend History | 43 years |
| Last Cut or Suspension | None |
📈 Dividend History
Examining the dividend history is crucial as it indicates the company's ability to maintain or increase dividend payments over time. General Mills' consistent record enhances investor confidence.
| Year | Dividend Per Share |
|---|---|
| 2025 | 1.20 |
| 2024 | 2.38 |
| 2023 | 2.26 |
| 2022 | 2.10 |
| 2021 | 2.04 |
📉 Dividend Growth
Analyzing dividend growth offers insights into the potential for increased income from holdings over time. General Mills exhibits steady dividend growth, showing its capability to enhance shareholder returns progressively.
| Time Frame | Growth |
|---|---|
| 3 years | 5.27% |
| 5 years | 3.96% |
The average dividend growth is 3.96% over 5 years. This shows moderate but steady dividend growth.
✅ Payout Ratio
Payout ratios are pivotal to evaluating a company’s dividend sustainability. General Mills maintains balanced payout levels, demonstrating fiscal prudence without sacrificing shareholder rewards.
| Metric | Ratio |
|---|---|
| EPS-based | 51.16% |
| Free Cash Flow-based | 52.38% |
The EPS payout ratio of 51.16% and the FCF payout ratio of 52.38% are considered sustainable, suggesting a solid balance between rewarding investors and retaining earnings for growth.
💵 Cashflow & Capital Efficiency
General Mills demonstrates strong cash flow metrics, offering insights into its resource management efficiency. Healthy cash flow indicates the company’s robustness in sustaining dividend policies and capital expenditures.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Free Cash Flow Yield | 6.43% | 4.17% | 6.47% |
| Earnings Yield | 6.35% | 5.18% | 6.38% |
| CAPEX to Op. Cash Flow | 23.44% | 24.81% | 17.15% |
| Stock-based Compensation to Revenue | 0.48% | 0.56% | 0.52% |
| Free Cash Flow / Operating Cash Flow Ratio | 76.56% | 75.19% | 82.85% |
The solid free cash flow and earnings yield underscores strong operative performance, beneficial for sustaining dividends and investing in future growth.
💼 Balance Sheet & Leverage Analysis
A robust balance sheet is pivotal for supporting future dividend payments and absorbing potential economic shocks. General Mills’ leverage metrics are managed prudently, reflecting a balanced approach to debt.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Debt-to-Equity Ratio | 1.42 | 1.15 | 1.14 |
| Debt-to-Assets | 0.42 | 0.38 | 0.39 |
| Debt-to-Capital | 0.59 | 0.54 | 0.53 |
| Net Debt to EBITDA | 3.16 | 2.81 | 2.74 |
| Current Ratio | 0.65 | 0.69 | 0.63 |
| Quick Ratio | 0.38 | 0.40 | 0.40 |
| Financial Leverage | 3.35 | 3.01 | 2.95 |
General Mills’ sound financial leverage and liquidity ratios suggest effective risk management and operational resilience.
🧮 Fundamental Strength & Profitability
High profitability ratios and solid returns indicate efficient management and competitive advantages, supporting sustainable dividends.
| Metric | 2024 | 2023 | 2022 |
|---|---|---|---|
| Return on Equity | 26.57% | 24.82% | 25.68% |
| Return on Assets | 7.93% | 8.25% | 8.71% |
| Net Profit Margin | 12.57% | 12.91% | 14.25% |
| EBIT Margin | 17.76% | 17.60% | 18.92% |
| EBITDA Margin | 20.54% | 20.32% | 21.92% |
| Gross Profit Margin | 34.91% | 32.58% | 33.71% |
General Mills’ consistent returns and margins showcase its profitability and operational efficiency, crucial for sustainable investor returns.
📊 Price Development
🔍 Dividend Scoring System
| Criteria | Score | Visual |
|---|---|---|
| Dividend Yield | 3 | |
| Dividend Stability | 5 | |
| Dividend Growth | 3 | |
| Payout Ratio | 4 | |
| Financial Stability | 4 | |
| Dividend Continuity | 5 | |
| Cashflow Coverage | 4 | |
| Balance Sheet Quality | 4 |
Total Score: 32 out of 40
🏅 Rating
General Mills, Inc. exhibits a robust dividend profile characterized by stability and moderate growth. It remains an appealing option for dividend-seeking investors due to its consistent payout and financial resilience. The overall projection for its dividend sustainability is positive, making it a reliable choice for long-term investment portfolios.