Their dividends look safe despite setbacks

Article Excerpt

GENERAL MILLS INC. $42 (New York symbol GIS; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 592.9 million; Market cap: $24.9 billion; Dividend yield: 4.7%; Dividend Sustainability Rating: Highest; www.generalmills.com) is one of the world’s largest food producers. Its top brands include Big G (cereal), Green Giant (canned and frozen vegetables), Pillsbury (baking dough), Old El Paso (tacos), Progresso (soups and salads) and Yoplait (yogurt). The company last raised its quarterly dividend in August 2017 by 2.1%, to $0.49 a share from $0.48. The new annual rate of $1.96 yields a high 4.7%. In April 2018, General Mills completed its $7.8 billion acquisition of Blue Buffalo Pet Products, Inc. That firm makes pet foods using organic and natural ingredients. For fiscal 2018, General Mills’ earnings will likely remain unchanged at $3.08 a share. That reflects higher costs for product ingredients and shipping, which should offset tax savings. The stock trades at 13.6 times that forecast. General Mills is a hold. CAMPBELL SOUP CO. $34 (New York symbol CPB; Conservative-Growth…