8 percent dividend increase
Today the General Mills board of directors declared a quarterly dividend of 41 cents per share, payable May 1, 2014, to shareholders of record April 10, 2014. This represents an 8 percent increase from the previous quarterly rate of 38 cents per share.
Including the new May quarterly payment, General Mills dividends per share in fiscal 2014 will total $1.55, up 17 percent from the annual dividend of $1.32 paid the previous fiscal year. And at recent stock prices the yield is around 3 percent.
This is 15th time in the past 10 consecutive years that General Mills has increased its quarterly dividend rate.
Furthermore, this is the 115th year General Mills and its predecessor firm, the Washburn Crosby Company, have paid dividends without interruption or reduction.
General Mills considers dividend growth a key component of the company’s long-term shareholder return model, a message our Chief Financial Officer Don Mulligan reinforced at the Consumer Analyst Group of New York (CAGNY) conference last month.
General Mills’ 115-year track record is testimony to the strong and steady operating cash flows generated by its global consumer food brands like Cheerios, Yoplait, Haagen-Dazs, Nature Valley, Old El Paso, Betty Crocker and more.
To put the General Mills dividend track record into perspective, consider this. If you had invested $1,000 in General Mills stock in 1928 – the first year our stock was listed on the New York Stock Exchange – and held it through the calendar year 2013, the value of your shares would have increased nine times more than the same amount invested in the Dow Jones Index. And that’s just price appreciation.
If you also include reinvested dividends, that $1,000 investment in General Mills would be worth more than $7 million today.
You can read more about today’s announcement in a press release on GeneralMills.com.