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Any opinions on GIS General Mills? Recently missed earnings and dipped about 4%, is now about midway between 52 wk hi/low. I noticed GIS missed earnings last 4 quarters in a row-not good. But I like the company and need am weak consumer staples in my account. Decent divy-3.2%, PE 19 payout ratio 61%
KRFT divy 3.7%, PE 14, a bit above midpoint of 52wk hi/low. Is in a small dip, not sure why. Payout Ratio 52%. Like this company too.
May sell puts on both.
Tough market now with strong dollar for multinationals. Maybe just wait til after elections.
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jcirafix, I own both -- GIS in my portfolio and KRFT in my wife's. I'm in the process of re-evaluating them and won't hazard an opinion right now. Both are long-term holds currently but wouldn't add new money into either just yet. Of course, this ignores your circumstances and time frames you're looking at.
GIS has been paying a dividend without a cut for almost a century, I believe, but they have frozen it at times. Kraft was spun off from Altria and spun off Mondelez after that so it's really the new kid on the block as a standalone company. I will say that if you look in my kitchen and go to the grocery store, you'll see their products all over the place.
For more information, you may want to look at Factoids blog over at Seeking Alpha for a pile of stats in this sector. He just posted a new one
here.
I would also recommend going to KRFT's IR site and check out the video of their investor presentation if it's still available. Management has laid out an interesting plan.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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I own both and reinvest dividends in both.
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Don't over- think this. I echo DW and RNSmith above. Own both. GIS just bought a company to bring more " wholesome" and " nutritious" product to their family of breakfast foods. They've been at this over 100 years. And check out any family's cupboard and you'll find Kraft on the shelf. Stock prices go up, they go down. Best to buy when 100 year winners dip a bit. Good luck.
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Thanks for the thoughts guys. It is a difficult time. I want to get buy at a value-I suppose they are at fair price now. Market is toppy and un stable with elections and tapering/possible interest rate hike. This is why I hesitate. I think I'll split the difference-1/2 positions.
