Jim Cramer Highlights General Mills as a 5% Yield Play in a Volatile Environment
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Jim Cramer Highlights General Mills as a 5% Yield Play in a Volatile Environment
General Mills (NYSE:GIS) develops packaged foods across categories like cereal, snacks, frozen meals, dairy, baking, and pet nutrition. In a June episode, Cramer discussed the company’s earnings. He said: “Finally, there are the miserable consumer packaged goods plays. Oh my god, they’re so horrible. Today, the once invincible General Mills… put up incredibly weak numbers. The General used to be the most clockwork of the group. Today,. the stock slipped over 5%. Amazing.”
“I’m not going to go against a market that’s signaling that interest rates are coming down. That’s what today did. And the high fliers have flown too high, while the companies with good dividends have gotten too low. This is just temporary. So what are you supposed to do then? First, know that the rotations are not investible, but at best, they’re tradable. Take Campbell’s or General Mills, both yield almost 5%. Both are good companies, just not as good, maybe not as good as PepsiCo, but they’re in the same league… So if people are craving chips and soda again, maybe they’ll also crave food from General Mills and Campbell’s, neither of which has the calories of Doritos or the chemicals of soda.”
Jim Cramer Highlights General Mills as a 5% Yield Play in a Volatile Environment
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General Mills (NYSE:GIS) develops packaged foods across categories like cereal, snacks, frozen meals, dairy, baking, and pet nutrition. In a June episode, Cramer discussed the company’s earnings. He said:
“Finally, there are the miserable consumer packaged goods plays. Oh my god, they’re so horrible. Today, the once invincible General Mills… put up incredibly weak numbers. The General used to be the most clockwork of the group. Today, the stock slipped over 5%. Amazing. Look, if you listen to management on the conference call, they don’t even sound challenged. It seems like they think it’s business as usual. They chatter on and on about some algorithm that gives them the numbers they want, but they don’t seem to understand that they gotta cut price big time or do some merging in order to make things palatable.”
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Disclosure: None. This article is originally published at Insider Monkey.
Source: https://finance.yahoo.com/news/jim-cramer-highlights-general-mills-033037480.html