Saturday, February 18, 2017

Recent Buy - General Mills, Inc. (GIS)

Yesterday on February 17, I Bought 20 shares of General Mills, Inc. at $ 59.45 per share plus commission.

General Mills, Inc. manufactures and markets branded consumer foods in the United States. It operates in three segments: U.S. Retail, International, and Convenience Stores and Foodservice. The company offers ready-to-eat cereals, refrigerated yogurt, soup, meal kits, refrigerated and frozen dough products, dessert and baking mixes, frozen pizza and pizza snacks, grain and fruit and savory snacks, stable and frozen vegetables, and ice cream and frozen desserts, as well as various organic products, including meal kits, granola bars, and cereal. The company markets its products under the Annie’s, Betty Crocker, Bisquick, Bugles, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Cocoa Puffs, Cookie Crisp, Fiber One, Food Should Taste Good, Fruit by the Foot, Fruit Gushers, Fruit Roll-Ups, Gardetto’s, Go-Gurt, Gold Medal, Golden Grahams, Häagen-Dazs, Helpers, Jeno’s, Jus-Rol, Kitano, Kix, La Salteña, Lärabar, Latina, Liberté, Lucky Charms, Muir Glen, Nature Valley, Oatmeal Crisp, Old El Paso, Pillsbury, Progresso, Raisin Nut Bran, Total, Totino’s, Trix, Wanchai Ferry, Wheaties, Yoki, and Yoplait names. General Mills, Inc. also supplies branded and unbranded food products to the foodservice and commercial baking industries. It sells its products directly, as well as through broker and distribution arrangements to grocery stores, mass merchandisers, membership stores, natural food chains, e-commerce grocery providers, commercial and noncommercial foodservice distributors and operators, restaurants, and convenience stores, as well as drug, dollar, and discount chains. The company operates 530 ice cream parlors; and franchises 344 branded ice cream parlors. General Mills, Inc. also exports its products primarily to Caribbean and Latin American markets. The company was founded in 1928 and is headquartered in Minneapolis, Minnesota.

General Mills has been on my watch list already long time, after it yesterday lowered its outlook for FY 2017, the share price dropped about 4% and I finally pushed the buy button. 

GIS is a Dividend Contenders with a 13 year streak of dividend increases. Dividend growth rates for 1, 3, 5 and 10 years are 7.5, 9.4 , 9.7 and 10.4. (DividendChampions.xls) General Mills, Inc. pays dividends of $ 0.48 per share normally in February, May, August and November.

If you are interested, you can read more of General Mills by Bob Ciura at Sure Dividend here, and analysis of GIS by Dividend Growth Investor here. 

Details of my purchase:

Some ratings for GIS:

    Yahoo:  Mean Recommendation 2.9, 1y Target Est $ 63.44
    Reuters: Mean Rating 2.89
    Morningstar:  (***) 

At today's exchange rate, this purchase 20 shares of GIS will increase € 26.95 ($ 28.61) of my expected annual net dividend income and will increase my portfolio's projected annual net dividend income to € 10,700.00. With purchase price $ 59.45 plus commission ($ 5.00) my starting yield on cost is 3.22%. After this acquisition, GIS's weight of my portfolio is about 0.3% and its share of future annual dividend income is approximately 0.25%. I'm planning slowly to build up GIS's share of my portfolio, if the price remains at these levels.

Click here to see my portfolio.

Full Disclosure: Long GIS 

Thanks for stopping by!