General Mills Shares Drop 30%, Offering a 7% Dividend Yield Amid Cost Pressures

General Mills shares finished at $34.60 on Nov. 10, resting roughly 30% below their 52-week peak of $49.59. This steep decline has elevated the annual $2.44 dividend to a yield of about 7%, providing roughly $70 annually for every $1,000 invested. The company maintains a 128-year history of uninterrupted dividend payments, drawing attention from everyday investors seeking income during a broader market slump.

The consumer packaged goods company faces a difficult environment marked by stretched household budgets and higher expenses for freight, grain, and packaging. In response to competitive pressures, General Mills lowered base prices on certain items, which squeezed profit margins even as organic sales remained flat and adjusted earnings per share dropped by 13% in the latest quarter. Management projects full-year adjusted earnings per share between $3 and $3.20, valuing the stock at roughly 11 times expected earnings.

Despite these headwinds, the company is focusing on product renovations and cost-cutting initiatives. Management aims to achieve $750 million in savings this year and $3 billion by fiscal 2030, while holding the dividend steady and pausing buybacks to reduce debt. Chief Operating Officer Dana McNabb is scheduled to step into the CEO role on Jan. 1, 2027, as the firm works to restore profitable growth across its cereal, dough, and pet food brands.

What to watch next: Investors will closely monitor upcoming quarterly earnings reports to track cost-saving progress and whether product updates can sustain sales momentum.