Daily Stock Pick: General Mills

A portfolio of stocks I started and named Volio Folio, September 3, holds 52 dividend dogs. Volio is the fifth portfolio I've built (at a one dividend dog per-week pace) since 2014. Five portfolios = V for Volio!

I'm reviewing today the fifth of five consumer defensive sector stocks striving to be picked to join the Volio folio collection. This would be the fifth pick for Volio!

This consumer defensive sector includes thirteen industries all related to providing conveniently packaged goods we've just gotta have. Industries like: beverages, brewed, soft, or distilled; confections; discount stores; education & training; farm products; food distribution; grocery stores; household & personal products; packaged goods; pharmaceutical retailers; tobacco.

My subject today is al large cap packaged foods company named General Mills Inc. Their trading ticker symbol is GIS.

General Mills is a leading global packaged food company that produces snacks, cereal, convenient meals, yogurt, dough, baking mixes and ingredients, pet food, and superpremium ice cream.

Its largest brands are Nature Valley, Cheerios, Old El Paso, Yoplait, Pillsbury, Betty Crocker, Blue Buffalo, and Haagen-Dazs. In 2019, 74% of its revenue was derived from the United States, although the company also operates in Canada, Europe, Australia, Asia, and Latin America.

While most of General Mills' products are sold through retail stores to consumers, the company also sells products into the food-service channel and commercial baking industry.

General Mills, Inc. was founded in 1866 and is headquartered in Minneapolis, Minnesota.

I use three key data points to gauge dividend-paying equities or funds like General Mills Inc. (GIS):

(1) Price

(2) Dividends

(3) Returns

Besides those three, several other keys will finally unlock an equity or fund in which to invest, or not.

Those three basic keys, however, best tell whether a company has made, is making, and will make money.

GIS Price

General Mills' price per share closed at $54.27 yesterday. A year ago its price was $43.03. In a year its price increased by $11.24 or 26%.

Assuming General Mills' stock trades in the range of $45 to $65.00 this next year, General Mills' recent $54.27 price could rise by $4.73 and get to $59.00 by late September 2020. If the past year's momentum holds.

GIS Dividends

General Mills's latest declared quarterly dividend was $0.49 payable November 9th.

That $0.49 Q payout added to the previous three equates to $1.96 annually and yields 3.61% based on yesterday's $54.27 closing price.

GIS Gains?

Adding the $1.96 annual estimated dividend to my $4.73 estimate of General Mills' price upside shows a $6.69 potential gross gain, per share, which will be reduced by costs to trade these shares.

Say we put a little under $1,000.00 today into General Mills at its $54.27 recent stock price, we'd buy 18 shares of General Mills Inc. (GIS) shares.

A $10 broker fee paid half at purchase and half at sale will cost us about $0.56 per share.

Subtract that $0.56 brokerage cost from the estimated $6.69 gross estimated gain leaves a net gain of $6.13 X 18 shares = $110.34 or an 11% net gain on a $976.86 investment.

Therefore, General Mills Inc.,whose trading ticker symbol is GIS now shows a possible net gain of 11% including a 3.61% dividend yield. It could be more, it could be less.

The above speculation is based on past year performance. The actual results remain to be seen to learn if General Mills Inc. (GIS) is worth your time and money.

Disclosure: This article was compiled by Rydlun & Co., LLC from data derived from www.ycharts. com; www.finance.yahoo.com; analyst median target price by YCharts Catch Your Underdog Daily ...

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