RBC Capital has shifted its stance on General Mills, upgrading the stock from Sector Perform to Outperform with a refreshed price target of $63. This change reflects renewed confidence in the company’s earnings durability and its strategic pricing reset in a tough consumer environment. Despite prior concerns about waning demand in packaged foods, RBC sees the company’s conservative guidance and value proposition as compelling entry points.
The upgrade is anchored by management’s disciplined approach to navigating headwinds. With an emphasis on recovering volume through thoughtful pricing—particularly in the North American retail segment—General Mills is prioritizing long-term brand health over short-term margin gains. RBC views this shift as a key factor in turning sentiment around.
🍞 Dividend Snapshot
📊 Yield: Around 4.7%, offering a strong income stream in today’s market
🕰️ History: More than 55 years of consecutive dividend increases
🧮 Payout Ratio: Balanced to allow for steady dividends and reinvestment
What further supports this call is General Mills’ ability to leverage innovation across segments, including pet nutrition and premium ice cream. A streamlined cost structure and brand refresh initiatives add to the growth story.
For investors seeking reliable dividends with moderate upside potential, this upgrade suggests General Mills could be entering a new phase of steady, sustainable performance.