7 percent dividend increase declared
The board of directors at General Mills today approved a 7 percent increase in the quarterly dividend from $0.41 per share to $0.44 per share. Today’s dividend is payable May 1, 2015, to shareholders of record on April 10, 2015.
Dividend growth is considered a key component of the company’s long-term shareholder return model. Over the last five full fiscal years the quarterly dividend has been increased six times and the annual dividend has grown at a 12 percent compound rate.
(Infographic – Click on the image to enlarge)
“Through the combination of dividends and share repurchases, we’ve returned $7.5 billion dollars to shareholders, or the equivalent of 90 percent of our free cash flow, over the past five fiscal years and we expect to build on our solid track record of shareholder returns in the years ahead,” said Don Mulligan, chief financial officer at General Mills.
The new annualized rate of $1.67 per share represents a yield of around 3 percent compared to an average yield of 2.6 percent for the S&P Consumer Staples Index.
And, General Mills’ current yield beats many investment vehicles in today’s low interest rate environment, including 5-year U.S. Treasury bonds, which are currently yielding 1.5 percent and 10-year U.S. Treasury bonds which are currently yielding 2 percent, according to Yahoo Finance.
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