General Mills

GIS

Market cap $23.6B

Making economic forecasts is difficult at any time. But in an age where investors have access to more data than ever, there seems to be more uncertainty than ever before.

In November, we (my wife and I) received a dividend income total of $1,489.90. Another $1,000+. Capital One Financial. After they acquired Discover, I was not sure what to expect.

Dividend stocks have historically outperformed non-dividend paying stocks. Ford is betting on a second "Model T moment" to help drive innovation.

New food guidelines shared by Health and Human Services Secretary Robert F. Kennedy Jr. this week have consumers, health experts and food companies taking note.

Consumers are concerned about rising costs, which is causing investors to worry about brand-driven consumer staples makers. The consumer staples sector has remained relatively stagnant over the past year, while the S&P 500 index has risen by more than 15%.

Dividend King Coca-Cola has a reasonable price, and it also has a yield well above the market's. General Mills has a big yield and strong dividend history, but its business is currently underperforming.

The consumer staples sector is out of favor with investors. I sold my holdings in Clorox and Hormel to capture tax losses, with plans to repurchase them both in early 2026.

United Natural Foods, Beyond Meat, Vital Farms and General Mills are betting big on organic, clean-label foods and redefining what's healthy on store shelves.

General Mills (GIS) is significantly undervalued, trading at ~12.8x FY26 EPS, with a fair value estimate of $62.39, versus ~$47.00 current price. GIS is reshaping its portfolio, aggressively expanding in pet food, and leveraging Blue Buffalo's leadership and acquisitions in fresh dog and cat food. Dividend yield stands at 5.15%, with acceptable safety metrics; payout ratio at 65% and FCF coverage at 58% support continued low single-digit growth.

Dividend stocks have been under pressure in the past few years due to the broader economy's unpredictable swings.