GIS - General Mills: Do Not Always Seek Alpha

2024-06-16 01:11:55 ET

Summary

• General Mills is one of those companies to be invested in because of another Greek letter than Alpha.
• Beta is the name of the game, which, being close to zero, pictures GIS as independent of the overall market.
• With chances for real long-term growth beyond inflation being limited, GIS’ 3.6% dividend could be interpreted as inflation-protected income.

Thesis

General Mills (GIS) is a company investors buy stakes in not because of the need for outperformance, but because of its reliable dividend, standing at 35 years without a reduction, and its solid business model. Even more so, I argue that General Mills comes close to representing an “equity bond” – a term I recently came across in another article and would like to adopt for stocks like General Mills. Now, one step at a time, I would like to guide you through why I like stocks like General Mills, by...

For further details see: