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General Mills (GIS) Bumps Up Fiscal 2017 Dividend by 8%
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In order to share more profit with investors, the board of directors at General Mills Inc. (GIS - Free Report) raised its annual dividend by 8%. The company’s board declared a quarterly dividend at the prevailing rate of 48 cents per share.
With this, the current annualized dividend rate is $1.92 per share, an increase of 8% over the annual dividend of $1.78 paid in fiscal 2016.
Investors should note that General Mills’ shares have gained 10.7% year to date, significantly outpacing the 6.5% rise of the Zacks categorized Food-Miscellaneous Preparation/Diversified industry. This price performance is backed by favorable estimate revision for this year and the next over the last 30 days.
Moreover, the company’s earnings have surpassed the Zacks Consensus Estimate consistently over the past four quarters, resulting in an average positive surprise of 4.37%. Consumer-focused innovation, marketing initiatives and robust restructuring savings are making up for the sluggish revenue growth at General Mills. Given the company’s solid performance compared to its peers as a result of the brand’s strong consumer affinity, the stock should keep performing well in the quarters ahead.
That said, sales and profits at General Mills’ U.S. Retail segment, contributing 60% to its sales, have been soft due to lower demand amid changing consumer food preferences. The weakness continued into fiscal 2016, with sales declining 5%. Also, in the first quarter of fiscal 2017, net sales dipped 7.1% year over year. Organically, year-over-year sales growth is anticipated in the range of flat to down 2% for fiscal 2017.
Management is trying to turn around this business through consumer-focused innovation and marketing. The company raised its cost savings target for fiscal 2018 as it forges ahead with its margin expansion efforts (read more: General Mills Plans to Restructure, Cut 400 to 600 Jobs).
Currently, General Mills carries a Zacks Rank #3 (Hold).
Full-year 2017 earnings for Sysco are expected to grow 14.76%.
Ingredion is likely to witness 20.1% growth in full-year 2016 earnings.
Fiscal 2017 earnings for Lancaster are expected to rise 7.3%.
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General Mills (GIS) Bumps Up Fiscal 2017 Dividend by 8%
In order to share more profit with investors, the board of directors at General Mills Inc. (GIS - Free Report) raised its annual dividend by 8%. The company’s board declared a quarterly dividend at the prevailing rate of 48 cents per share.
With this, the current annualized dividend rate is $1.92 per share, an increase of 8% over the annual dividend of $1.78 paid in fiscal 2016.
Investors should note that General Mills’ shares have gained 10.7% year to date, significantly outpacing the 6.5% rise of the Zacks categorized Food-Miscellaneous Preparation/Diversified industry. This price performance is backed by favorable estimate revision for this year and the next over the last 30 days.
Moreover, the company’s earnings have surpassed the Zacks Consensus Estimate consistently over the past four quarters, resulting in an average positive surprise of 4.37%. Consumer-focused innovation, marketing initiatives and robust restructuring savings are making up for the sluggish revenue growth at General Mills. Given the company’s solid performance compared to its peers as a result of the brand’s strong consumer affinity, the stock should keep performing well in the quarters ahead.
That said, sales and profits at General Mills’ U.S. Retail segment, contributing 60% to its sales, have been soft due to lower demand amid changing consumer food preferences. The weakness continued into fiscal 2016, with sales declining 5%. Also, in the first quarter of fiscal 2017, net sales dipped 7.1% year over year. Organically, year-over-year sales growth is anticipated in the range of flat to down 2% for fiscal 2017.
Management is trying to turn around this business through consumer-focused innovation and marketing. The company raised its cost savings target for fiscal 2018 as it forges ahead with its margin expansion efforts (read more: General Mills Plans to Restructure, Cut 400 to 600 Jobs).
Currently, General Mills carries a Zacks Rank #3 (Hold).
Key Picks
Better-ranked stocks in the industry include Sysco Corporation (SYY - Free Report) , Ingredion Inc. (INGR - Free Report) and Lancaster Colony Corp. (LANC - Free Report) .
All three companies carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Full-year 2017 earnings for Sysco are expected to grow 14.76%.
Ingredion is likely to witness 20.1% growth in full-year 2016 earnings.
Fiscal 2017 earnings for Lancaster are expected to rise 7.3%.
"The Best Place to Start Your Stock Search
Today, you are invited to download the full list of 220 Zacks Rank #1 ""Strong Buy"" stocks – absolutely free of charge. Since 1988, Zacks Rank #1 stocks have nearly tripled the market, with average gains of +26% per year. Plus, you can access the list of portfolio-killing Zacks Rank #5 ""Strong Sells"" and other private research. See these stocks free >>"