General Mills: Expected To Outperform The S&P 500

Dec. 13, 2021 5:03 AM ETGeneral Mills, Inc. (GIS)11 Comments
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Summary

  • Especially in light of the then unforeseeable COVID-19 pandemic, GIS' move into the pet food sector proved to be a shrewd decision.
  • The company's balance sheet is improving thanks to the robust and growing free cash flow. The dividend is expected to grow as deleveraging continues.
  • With its strong brands, GIS has proven its ability to pass on price increases to customers.
  • GIS' future prospects are bright and the stock certainly deserves a position in a diversified portfolio.
  • The shares are still slightly undervalued and I expect them to outperform the S&P 500 over the next years.
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Introduction

General Mills, Inc. (NYSE:GIS) is a well-known, but not overly large (market cap $39 billion) consumer staples company that specializes in the manufacturing, marketing and distribution of snacks, ready-to-eat cereals, convenience meals, yogurt, ice cream and since 2018 also pet food. The company owns several well-regarded brands such

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Tired of effortful investing strategies with uncertain prospects? As a former deep value investor, I learned to appreciate the benefits of a dividend-focused value strategy several years ago. My strategy puts an emphasis on capital preservation and steadily growing income. I write primarily about stocks I hold in my diversified dividend stock portfolio, which emphasizes high-quality value stocks that offer meaningful growth and long-term safety. Feel free to reach out to me via direct messaging here, on Twitter, or through the comments section of one of my articles. Hit the “Follow” button if you'd like to join me on my journey to financial independence.

Disclosure: I/we have a beneficial long position in the shares of GIS, CL, NSRGY either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: I wrote this article myself and the content only serves an informational purpose and may not be considered investment advice. I cannot be held responsible and accept no liability whatsoever for any errors, omissions, or for consequences resulting from the enclosed information. The writing reflects my personal opinion at the time of writing/publication.

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