General Mills (GIS)
Things have been downhill for General Mills since the summer of 2016 and the stock has slowly been on the decline since then, however now may be the time to buy. It currently sits at a price of only $42 as of 5/10/18. This downturn has pushed the dividend yield up to 4.42% which is no significantly higher than it has been in the past. It has a forward P/E of only 13.45 which is phenomenal for a value stock of its kind. While things haven’t been looking good for consumer staples industry as a whole as of late, this is a great buying opportunity to buy into for a long term play. Even if the next year or two see slight declines or a flat line for the stock, it would not concern long run performance of this company. General Mills is the owner of over 100 different brands and sells products in over 100 countries across the globe, this gives me confidence that the company will not have a problem recovering. This accompanied with the fact they have been steadily growing their dividend over the course of the last 14 years. This shows they were able to still grow their dividend through economic hardship in 2008-2009. All of this gives me the utmost confidence in becoming a shareholder in the company.
You can see a full list of their holdings here:
General Mills is an undervalued value stock for long term, no you likely won’t see the stock double from tremendous growth over the next few months or years but buying this stock could make a highly positive impact on your portfolio. It may be a great opportunity for you to diversify your portfolio or transition your portfolio from high growth to a nice balance of value/growth by purchasing a massive value stock that is currently undervalued.
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