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Just another guy attempting to fight monetary policy with my savings
  • General Mills (GIS) -- Did You Eat Your Wheaties Today? I Did 1 comment
    Jun 25, 2014 11:18 AM | about stocks: GIS

    Did you eat your Wheaties today? Personally I sorta like Lucky Charms. I know my mom really likes Rice Chex. I guess none of us bought enough of this stuff in the last quarter. That or the Pillsbury Dough Boy went out on strike.

    General Mills (NYSE:GIS) announced results today and while not total disaster, they were under expectations. Nice coverage by Value Investor here on Seeking Alpha.

    Bam; haters out. GIS down 3.5%. Boo hoo hoo.

    I consider this totally boring company a core holding and I already have a full GIS position acquired in five buys since mid December. My current cost basis is 4% below the now-lower price so buying today will actually increase my average cost.

    Hmm; what to do. Not hard. Time to buy. GIS is one of the most amazing DGI companies on the planet. I was able to purchase a block at $51.80.

    Although today's buy increased my average share price to $50.14, I think the $1.90 discount -- which, by the way, is more than an entire year's dividends handed to me in a single day -- is a reasonable trade.

    In addition, GIS will provide a $0.41 dividend on 8/1.

    Now go back to sleep dear GIS. You are one damn boring stock. I like you that way. Keep it up; stop being so assertive and showoffy.

    Maybe I'll have some Yoplait for lunch or go all out and enjoy some Häagen-Dazs tonight.

    Disclosure: The author is long GIS.

    Stocks: GIS
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  • ipahophead
    , contributor
    Comments (166) | Send Message
     
    Author’s reply » Great article by @Sure Dividend -- http://seekingalpha.co...

     

    Many great points including:

     

    1) "General Mills' long-term standard deviation of just 17.02% is the 3rd lowest of 120 stocks with 25+ years of dividend payments without a reduction. The company's extremely low standard deviation is evidence of stable, predictable cash flows and little risk of business failure."

     

    2) "General Mills' disappointing 4th quarter results mask the company's solid future growth potential. General Mills' 114 years of dividend payments without a reduction show the company can survive under a wide array of economic climates and through changing consumer tastes. General Mills is the 5th highest raked stock and a buy based on the 8 Rules of Dividend Investing."
    1 Jul 2014, 09:34 PM Reply Like
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