Dividend Hikes: General Mills - TheStreet

Dividend Hikes: General Mills

General Mills increases its quarterly dividend and announces a new stock repurchase plan.
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NEW YORK (TheStreet) -- General Mills (GIS) - Get Report shares traded lower Tuesday even after the food products maker upped its quarterly dividend by 12% and announced a new stock buyback plan.

General Mills

said late Monday it will increase its quarterly dividend to 28 cents per share from 25 cents. On an annualized basis, the increase raises General Mills' dividend yield to 3% from 2.68% previously.

"The dividend increase announced today is a reflection of our company's robust financial condition and excellent future growth prospects," General Mills Chairman and CEO Ken Powell said Monday in a statement. The dividend is payable on Aug. 2 to shareholders of record July 12.

General Mills also said its board has authorized a new plan to repurchase up to 100 million common shares. The repurchase authorization replaces a previous one established in December 2006, and has no expiration date.

The announcements came a day before General Mills posts its fiscal fourth-quarter financial results. Analysts expect a profit of 41 cents a share on revenue of $3.55 billion, according to a Thomson Reuters poll. The earnings report is due after the close of trading Tuesday.

-- Written by Robert Holmes in Boston

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