Recent Buy – General Mills (GIS) & a little Kroger (KR)
Lately, I have been looking at several different companies across several different industries. I have started seeing some interesting opportunities pop up here and there. Now keep in mind that these purchases were made last week before the market dipped. After looking at several companies I finally narrowed the main purchase down to General Mills (GIS). They have been paying interpreted dividends for the past 117 years, including increasing their dividend for the past 13 years straight. Currently, their dividend yields 3.26%, which is higher than their 5 year average. This doesn’t worry me since they currently have around a 64% payout ratio.
I have read many articles that were very bearish on the company. I can kind of see things from their point of view but that doesn’t mean that I agree with it. General Mills currently has an arsenal of very recognizable brands including Cheerios, Cinnamon Toast Crunch, Betty Crocker, Pillsbury, Häagen-Dazs, Yoplait, Nature’s Valley and Fiber One. They are a diverse company with products in several categories. I see them working toward growing their organic and healthy snacks/foods, which is a growing industry in itself.
The company has lately been showing some stagnate earnings but they have proven in the past to hold up pretty well during recessions. I am not looking for a company that I can buy now and sell next year for a quick profit. I am looking for a company that I can buy and continue to build a position in while I hold it over the long term. Theoretically, I have no intention of ever selling any of my stock unless the company just isn’t growing and paying dividends anymore. So I am willing to buy into a good company like General Mills because I know the short term make look rough but the long term will continue to trend upward.
Another small addition that I made recently was adding two more shares of Kroger to my position. I will continue to nibble away at this position as long as the share price is down below my cost basis. They are a great company with a lot of brands working for them as well. I initially first started looking at Kroger back when I added Kroger to my Watch List. Since then I have been making small nibbles and adding more shares. Unless I see a big dip, I will continue to take nibbles at this stock while I build a position.
I have already updated my Portfolio page as well as my Dividend Income page to reflect these changes. Maybe with the dip that I have been seeing in the market this week maybe I will be able to squeeze in another purchase before the end of the month. I guess only time will tell. Thanks for reading this post about my recent purchases.
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I look forward to hearing all of your comments and questions about my recent buys. Plus I would love to hear about your latest purchases. Just leave me a comment down below. Until next time from More Dividends….. Happy Investing!!!
Nice to see you picking up some GIS near its low. I like the company a lot long term and think it will continue adapting to new consumer tastes as MCD did/does and HRL too for that matter. GIS is doing this by buying Annie’s, Lärabar, Cascadian Farm and other natural and organic food makers alongside their stable of other brands that they own. Great yield too by the way. Thanks for sharing.
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I agree, it will take some time for the changes to really show at GIS but I hope by the time it does that I will have a nice position built up. I also have been looking at HRL lately. It would be a nice one to add as well. I hope things have been going well for you. Thanks for stopping by DH.
I hope GIS can make the changes that will guide it toward topline growth once again. They have been in a bit of a slump the past couple years. It sounds like they are listening to consumers taking steps in the right direction, whether it be more healthy organic choices or offering more delicious fatty selections like custard based yogurt. Grats on the purchase.
I like the GIS buy. I’ve been watching this stock for a while. It’s been heading down the past few months. Given that there’s little value in the market right now, GIS looks like a good purchase.
I’m watching GIS closely here. Seems like a nice time to buy at their low. I love their brands and am always a fan of these consumer staple stocks. The couple of things I am keeping an eye one are the company’s payout ratio, which you noted in your article, and the debt level to make sure that it doesn’t continue to climb. But overall, nice pick up with a yield of 3.25%!
Bert
Dividend Diplomats recently posted…My Annoying $100 Loss
You don’t go wrong with GIS. Thank you for pointing out that GIS is at its low. I’m buying 30 shares for my ROTH. I’m moving some money to load some GIS up.
I like KR at this price also. Still considering. but I love WMT and TGT … decision, decision… LOL 🙂
Cheers!
I really like this buy. I own GIS as well and was considering increasing my position. The price now is even better than when I bought it originally so it would decrease my overall cost basis. One of the few stocks in this market that has value at it’s current price. Nice to see it on others watch lists too or people making purchases.
Dividend Daze recently posted…Dividend Update – March
Good stuff. I’ve initiated a position in GS last week!