Food makers Conagra and Campbell's have both cut their dividends this year amid inflation and the rise of GLP-1 drugs that curb appetite. General Mills has kept its dividend intact so far, with a 7.2% yield. In its latest quarter, net sales fell 3% due to the U.S. yogurt divestiture, while organic sales were flat, and adjusted per-share profit was $0.75, down from $0.86 a year earlier. With the current quarterly dividend of $0.61, the payout ratio is around 81%, and trailing 12-month free cash flow of $1.6 billion exceeds the $1.3 billion paid in dividends, a buffer that is not large. The author sees no clear reason for an imminent cut but says investors should watch the dividend closely, noting the stock is down 45% over five years.
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