Chuck Carlson: General Mills (GIS)
"With the market looking toward high-quality, dividend-paying stocks General Mills (NYSE: GIS) looks especially tasty for total returns in 2010," says Chuck Carlson in The DRIP Investor.
"Profits for the leading food company should show nice gains in 2010, which should provide support to the stock price. Also, the stock offers certain defensive characteristics should the market become more tumultuous.
"Its stable of strong brand names, focus on costs, and overseas growth opportunities should drive profits higher in the near and long term. I like the stock for all seasons.
"General Mills owns some of the strongest brands on your grocer’s shelves, including Green Giant vegetables, Old El Paso Mexican food, Häagen-Dazs ice cream, Yoplait yogurt, and Cheerios and Wheaties cereals.
"Finally, General Mills has pricing power that could be very useful should inflationary fears increase among investors. The stock's yield of 2.7% is an added bonus. I look for the stock to outperform the overall market in 2010.
"I think the stock will continue to put up decent gains should the market rally continue. And I would expect the 'defensive' qualities of the stock to fuel above-average price resiliency should the overall market turn down.
"Investors should note that General Mills offers a direct-purchase plan whereby any investor may buy the first share and every share directly from the company. The minimum initial investment is $250. For information on the direct-purchase plan call (800) 670-4763."
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