Is General Mills a Good Dividend Stock to Own?

General Mills (NYSE:GIS) stock has been falling more than 10% in the past six months while the S&P 500 has been climbing 20% during the same period. The company was doing well amid the pandemic but investors have been selling off the stock of late, especially as there's hope that COVID-19 could be ending soon with the rollout of vaccines.

The decline in price has pushed the dividend stock's yield up and that could make it a more attractive buy for income investors. Currently paying $0.51 every quarter, investors who buy the stock today can expect to earn a yield of 3.6%. On a $10,000 investment, that's $360 every year in dividends with payments of $90 spread out every four months.

With a payout ratio of around 50%, the dividend looks to be safe and there's plenty of room for the company to raise its payments, which is what General Mills has been doing in the past. Last year, its quarterly dividend was $0.49 and with strong results of late, the company hiked those payouts by 4%.

Five years ago, at the start of 2016, it was paying $0.44 and it's increased those payments by 15.9% since then.

Although you may not see the stock skyrocket, General Mills can be a strong, stable investment to hold in your portfolio that can steadily add cash flow and help you grow your savings. With a profit in each of its past four quarters and a stable top line, it can be a great buy for long-term investors.