10 Best Dividend Stocks of All Time

4. General Mills, Inc. (NYSE:GIS)

Number of Hedge Fund Holders: 39

Dividend Yield as of July 23: 3.75%

General Mills, Inc. (NYSE:GIS) is an American multinational food processing company that also markets processed consumer food through retail stores. The Consumer Price Index (CPI) report for June showed a 3.3% YoY increase in the core rate, slightly below the 3.5% increase economists had predicted and down from the 3.4% rise in May. The food category, which is closely monitored, saw a 2.2% increase YoY in June. Within this category, food away from home rose by 4.1%, while food at home increased by just 1.1%. Although the inflation rate for food at home has been below the Federal Reserve’s target of 2% for eight consecutive months, food prices overall remain high compared to two or three years ago. With inflation on the rise, food companies have had to increase their prices.

General Mills, Inc. (NYSE:GIS) is handling the situation more effectively than its peers. In its FY24 earnings, the company announced that it had achieved better volume performance in the second half of the year and generated top-tier cost savings through Holistic Margin Management (HMM). This enabled it to safeguard its brand investments while meeting its profit and cash flow targets. Looking ahead to fiscal 2025, the company’s primary focus is to boost organic net sales growth, particularly in volume, by delivering exceptional experiences across its portfolio of leading brands. The gross margin also rose by 140 basis points to 35.8% of net sales, thanks to HMM cost savings, favorable mark-to-market effects, and reduced other supply chain expenses.

General Mills, Inc. (NYSE:GIS) also reported a strong cash position with an operating cash flow of $3.3 billion in FY24, up from $2.8 billion in the prior-year period. During the year, the company paid $1.4 billion in dividends, showing its commitment to shareholder return. The company has paid dividends without interruption for 125 years, which makes it one of the best dividend stocks of all time. On June 26, General Mills, Inc. (NYSE:GIS) declared a 1.7% hike in its quarterly dividend to $0.60 per share. This was the company’s third consecutive year of dividend growth after the pandemic. The stock offers a dividend yield of 3.75%, as of July 23.

According to Insider Monkey’s database of Q1 2024, 39 hedge funds held stakes in General Mills, Inc. (NYSE:GIS), compared with 40 in the previous quarter. These stakes have a total value of nearly $852 million. With over 2.6 million shares, Two Sigma Advisors was the company’s leading stakeholder in Q1.