Johnson & Johnson (JNJ), Unilever plc (ADR) (UL), General Mills, Inc. (GIS): Three Income Growth Stocks for Steady Returns

Processed and packaged foods

In the food industry, I think General Mills, Inc. (NYSE:GIS) tops the list. Its shares have risen by nearly 30% over the last year, and analysts at Deutsche suggest that there could be another 20% upside.

The processed food manufacturer was reporting sluggish sales volumes until it went on an acquisition spree last year. One of its crucial moves was the acquisition of Yoki Alimentos and Parampara Foods, which allowed General Mills, Inc. (NYSE:GIS) to enter the Brazilian and Indian markets respectively.

Although it currently generates 60% of its revenues from US retailers, these geographical expansions will add diversity and stability to its topline over the long run. As a result, its operating cash flows have risen and by nearly 70% over the last year.

For the recent quarter, General Mills, Inc. (NYSE:GIS) posted a 13% increase in its net income, while its revenues grew by 8%. Despite that these increases, however, its shares dipped slightly on slowdown-related fears. It’s worth noting that General Mills, Inc. (NYSE:GIS) will also launch 100 new products in 2013, which will eventually allow it to bolster its organic growth and regain its growth momentum.

At the current price, its shares yield 3.15%.

Final words

Needless to say, all of the mentioned companies seem like solid blue chip investments with ample income and growth prospects. In my opinion, investors should always try to create a portfolio of companies, rather than putting all of their eggs in the same basket.

The article 3 Income Growth Stocks for Steady Returns originally appeared on Fool.com and is written by Piyush Arora.

Piyush Arora has no position in any stocks mentioned. The Motley Fool recommends Johnson & Johnson and Unilever. The Motley Fool owns shares of Johnson & Johnson. Piyush is a member of The Motley Fool Blog Network — entries represent the personal opinion of the blogger and are not formally edited.

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