When people think about investing in the stock market, they often view it through the lens of compounding returns over time. But some investors may invest primarily in stocks to generate passive income rather than capital gains, especially those looking to supplement retirement income.
general mills (NYSE: GIS) It has an incredibly impressive 127-year streak without cutting its dividend, although there have been several multi-year periods where it hasn’t increased its payout. Therefore, you won’t find General Mills on the popular list of Dividend Kings, which are companies that have paid and increased their dividends for at least 50 consecutive years.
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Historically, investors have been able to count on General Mills as a clock for stable passive income. But lately, that passive income hasn’t been enough to offset share price losses. Over the past decade, General Mills has earned a negative total return of 12.4%. The last three years have been especially brutal: a negative total return of 48.9%.
General Mills’ liquidation has lifted its yield to a multi-decade high of 6.6%.
Here’s why dividend stocks should be bought now.
General Mills is facing declining sales and profits as the packaged food sector slows across the board. Consumers are stretched thin, and companies like General Mills are having a hard time passing rising costs onto consumers.
The long-term problem is changing consumer preferences toward healthier, unprocessed products. But General Mills has a relatively strong brand portfolio with an emphasis on breakfast and snacks, so it should be better positioned than other packaged food companies.
Still, the numbers don’t lie, and General Mills’ forecasts offer little hope for a near-term turnaround.
The good news is that General Mills’ dividend remains affordable and the stock is very cheap.
On March 17, General Mills announced it would sell its business in Brazil to shore up its balance sheet and focus on its higher-margin opportunities. The company has now delivered nearly a third of its portfolio through acquisitions and divestitures since fiscal 2018, while prioritizing its best brands and product categories. The divestiture follows General Mills’ June 30, 2025, announcement that it sold its U.S. yogurt business, which included brands such as Yoplait, Go-Gurt, Oui and Mountain High.