July 24, 2025 a 02:46 am
GIS: Dividend Analysis - General Mills, Inc.
General Mills, Inc., with a robust history of consistent dividend distributions, exemplifies stability and reliability in its sector. With a competitive dividend yield of 4.69% and an impressive track record of maintaining dividends for over four decades, General Mills remains a solid choice for income-focused investors.
📊 Overview
General Mills is positioned in a resilient sector that champions consumer staples, offering a stable dividend yield of 4.69%. With a current dividend per share of USD 2.41, the company has upheld continuous dividend growth over 43 years, reflecting its ongoing commitment to shareholder returns.
| Key Data | Details |
|---|---|
| Sector | Consumer Staples |
| Dividend yield | 4.69% |
| Current dividend per share | USD 2.41 |
| Dividend history | 43 years |
| Last cut or suspension | None |
📈 Dividend History
The historical dividend payments are a testament to General Mills' ability to generate steady returns for its investors. Consistent dividend payments showcase the company's prioritization of shareholder value.
| Year | Dividend per Share (USD) |
|---|---|
| 2025 | 1.81 |
| 2024 | 2.38 |
| 2023 | 2.26 |
| 2022 | 2.10 |
| 2021 | 2.04 |
📈 Dividend Growth
General Mills demonstrates modest yet consistent dividend growth, signifying sustainable financial health and increasing shareholder returns over the long term.
| Time | 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
The payout ratio informs stakeholders about the sustainability of dividend payments aligned with the company's earnings and cash flows.
| Key figure | Ratio |
|---|---|
| EPS-based | 65.85% |
| Free cash flow-based | 57.11% |
With EPS-based payout ratio at 65.85% and FCF-based at 57.11%, General Mills maintains an optimal range, ensuring continued ability to cover dividends from both earnings and free cash flows.
🗣️ Cashflow & Capital Efficiency
Strong cashflows and efficient capital use are essential for maintaining steady dividend payments and for reinvestment into growth opportunities.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Free Cash Flow Yield | 4.17% | 6.43% | 9.86% |
| Earnings Yield | 5.18% | 6.35% | 7.72% |
| CAPEX to Operating Cash Flow | 24.81% | 23.44% | n.a. |
| Stock-based Compensation to Revenue | 0.56% | 0.48% | 0.47% |
| Free Cash Flow / Operating Cash Flow Ratio | 75.19% | 76.56% | 100.00% |
Strong cashflow metrics ensure General Mills can sustainably fund dividends and operational needs, underscoring robust financial health.
📉 Balance Sheet & Leverage Analysis
Understanding leverage and balance sheet structure is crucial for assessing the financial risk General Mills is exposed to.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Debt-to-Equity | 115.46% | 141.70% | 161.74% |
| Debt-to-Assets | 38.36% | 42.31% | 44.99% |
| Debt-to-Capital | 53.59% | 58.63% | 61.79% |
| Net Debt to EBITDA | 2.81 | 3.16 | 3.72 |
| Current Ratio | 0.69 | 0.65 | 0.67 |
| Quick Ratio | 0.40 | 0.38 | 0.43 |
| Financial Leverage | 3.01 | 3.35 | 3.59 |
Moderate leverage ratios highlight General Mills' strategic use of debt to fund growth while maintaining financial stability.
✅ Fundamental Strength & Profitability
Assessing core profitability metrics provides insight into General Mills' operational efficiency and investment quality.
| Metric | 2023 | 2024 | 2025 |
|---|---|---|---|
| Return on Equity | 24.82% | 26.57% | 24.84% |
| Return on Assets | 8.25% | 7.93% | 6.91% |
| Margins: Net | 12.91% | 12.57% | 11.72% |
| EBIT Margin | 17.60% | 17.76% | 17.24% |
| EBITDA Margin | 20.32% | 20.54% | 20.00% |
| Gross Margin | 32.58% | 34.91% | 34.52% |
| R&D to Revenue | 0.00% | 0.00% | 0.00% |
High return and margin ratios underscore a strong profit generation capability, aligning with a proven ability to deliver shareholder value.
🗣️ Price Development
🗣️ Dividend Scoring System
| Criteria | Description | Score |
|---|---|---|
| Dividend yield | High yield relative to peers | |
| Dividend Stability | Consistency of payments over time | |
| Dividend growth | Increasing trend in dividends over time | |
| Payout ratio | Ratio of dividends to earnings | |
| Financial stability | Overall financial health | |
| Dividend continuity | Ability to maintain dividend payments | |
| Cashflow Coverage | Dividends covered by cash flows | |
| Balance Sheet Quality | Leverage and liquidity metrics |
Total Score: 34/40
🗣️ Rating
General Mills, Inc. is rated highly with a robust dividend yield and impressive historical performance, making it an attractive option for income investors. The company's financial stability and prudent management of dividend payouts suggest a sound investment opportunity.