U.S. foodmakers adapt to changing tastes

Article Excerpt

These two leading foodmakers continue to improve the quality of their products as consumers demand healthier alternatives. Those changes should spur their earnings, and let them keep raising their dividends. GENERAL MILLS INC. $59 (New York symbol GIS; Income-Growth Dividend Payer Portfolio, Consumer sector; Shares outstanding: 568.3 million; Market cap: $33.5 billion; Dividend yield: 3.3%; 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 3.3%. For its fiscal 2018 second quarter, ended November 26, 2017, General Mills earned $430.5 million. That’s down 10.6% from $481.8 million a year earlier. However, earnings per share fell 7.5%, to $0.74 from $0.80, on fewer shares outstanding. If you disregard unusual…