This Giant Dividend Stock Just Proved It Can Handle Inflation
General Mills (NYSE: GIS) is one of the food industry's biggest and most iconic names. Its size and its brand popularity helped this consumer goods maker generate enough free cash flow to afford a generous 2.8% dividend yield and elevate the company to a $45 billion market cap.
Like all of its peers, General Mills is working to manage rapid increases in input costs. Recently, the company released its fiscal first-quarter 2023 earnings (for the quarter ending Aug. 28). That report offered solid evidence that General Mills is getting a handle on this financial headwind.
It hasn't been easy to be a food maker over the past year or so. Even with a great stable of iconic brands like Cheerios and Betty Crocker (among many others), General Mills still deals with the rising costs of ingredients, the pay increases for employees, and the elevated price of shipping goods to its customers. Clearly, inflation is causing havoc with company profitability in this consumer staples segment.
Source Fool.com
