Could Buying High-Yield General Mills Today Set You Up for Life?

Key Points

• General Mills boasts this incredible 127-year history of never missing dividend payments, though its streak of yearly increases sits at just 7 years.
• It's basically a consumer-staples giant with tons of familiar brands. They buy stuff, sell stuff, manage their portfolio pretty well.
• That 4.8% yield? Kind of eye-catching for people who want steady income over the long haul.

General Mills presents a fascinating case for dividend hunters. It's not some fancy Dividend King. Far from it. Just seven straight years of dividend increases. Yet somehow, they've paid dividends without fail for 127 years. Think about that.

Some investors only chase those decades-long increase streaks. Makes sense. But if you just want reliable income flowing in, General Mills deserves a look. That hefty 4.8% yield might just be your ticket to lifetime income. No guarantees on yearly raises, though.

Brand Management: Their Real Superpower

General Mills makes food stuff. Packaged goods. With about $27 billion in market cap, they're not the biggest player. But they're substantial enough. They've got the muscle to compete in distribution, R&D, and marketing.

But here's the thing. They're not really a food producer. Not primarily.

They're brand managers. Pretty good ones too. They buy brands. Run them. Sell them when needed. They've been doing this dance for generations.

Take Blue Buffalo pet food. Major acquisition. Premium natural pet food brand. They've added smaller pet food companies since then. Smart moves.

They've also been selling stuff off. Their entire yogurt business? Gone. But they didn't rush it. Took years. That patient approach to reshuffling their portfolio? It seems that's exactly how they've kept those dividends flowing for over a century. Add in that juicy 4.8% yield, and you've got something worth considering.

What's Happening Now

Some folks limit themselves to companies with those super-long dividend increase records. Dividend Kings and such. I get it. But they're missing out on solid businesses like General Mills.

Yes, only seven years of consecutive increases. But zoom out. The dividend trend has pointed upward for decades. They pause sometimes. Big acquisitions like Blue Buffalo can do that.

Today's 4.8% yield is near historical highs. We saw similar yields during that Blue Buffalo acquisition when everyone thought they'd stretched too far. Didn't happen.

The challenges now are different. New faces in Washington. Consumers rethinking what they eat. People want "healthier" options, whatever that means these days.

Their recent numbers aren't fantastic. Organic sales down 2% in fiscal 2025. Adjusted earnings per share dropped 7%. Not great. Not a disaster either. They still bumped the dividend up by a penny in August. The board isn't panicking.

The Long Game

General Mills marches to its own beat with dividends. No decades-long increase streak. That makes people overlook it. Their mistake, especially with that current yield.

These folks know how to manage brands. They'll likely keep that dividend flowing through whatever challenges come. They just added a Mexican food brand to their lineup. Always evolving.

Step back from quarterly noise. Look at the bigger picture. A century-plus of dividends tells you something. Buy General Mills today, and you might just secure income for life.