Market Crash: This Dividend Stock Becomes a No-Brainer Buy at a Discount

2 hours ago 2

Selena Maranjian, The Motley Fool

Wed, May 27, 2026 astatine 12:27 PM CDT 4 min read

Many novice investors volition freak retired erstwhile there's a banal marketplace clang oregon correction. They shouldn't, of course, due to the fact that specified downturns volition inevitably hap present and then. Indeed, aft a clang is an excellent time to spell buying for caller stocks for your portfolio, due to the fact that galore large companies' shares volition beryllium connected sale.

Here's a banal you mightiness privation to see for your ain semipermanent portfolio: General Mills (NYSE: GIS). If the marketplace drops, its terms volition go adjacent much attractive, but you mightiness not adjacent privation to wait, due to the fact that its shares already look undervalued.

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Someone looks thoughtful, portion holding currency fanned out.

Meet General Mills

General Mills has been astir for 160 years. It traces its roots backmost to a Minnesota flour mill established successful 1866. It bought Häagen-Dazs successful 1983, Pillsbury successful 2001, and Blue Buffalo successful 2018. Today, with a caller marketplace worth adjacent $18 billion, it's a nutrient powerhouse, with brands including Annie's, Betty Crocker, Bisquick, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Gold Medal, Green Giant, Kix, Larabar, Nature Valley, Old El Paso, Progresso, Totino's, Wanchai Ferry, and Wheaties -- among galore others.

Should you put successful General Mills?

It's worthy considering an concern successful General Mills, due to the fact that the shares are looking alternatively appealingly priced, with a caller forward-looking price-to-earnings (P/E) ratio of 10.4 good beneath the five-year mean of 15.3, and a caller price-to-sales ratio of 1.0 good beneath the five-year mean of 1.9.

Note, though, that General Mills has been facing immoderate headwinds lately, with absorption pointing to respective that affected its 3rd quarter: retailer inventories, weather-related proviso concatenation disruptions, on with brand-improving investments, divestitures, and unfavorable commercialized disbursal timing, among others. It noted, though, that these "timing headwinds [are] expected to go tailwinds successful Q4."

Those factors were capable to effect successful the pursuing for the 3rd quarter:

Net income of $4.4 billion, down 8% twelvemonth implicit year, with integrated nett income down 3%.
Operating nett of $525 million, down 41% twelvemonth implicit year, with adjusted operating nett down 32% successful changeless currency.
Diluted net per stock (EPS) of $0.56, down 50% twelvemonth implicit twelvemonth -- and down 37% successful changeless currency.

Those are not perfect numbers, but retrieve the almighty brands nether the company's roof, and that the institution has been moving to crook things astir -- by divesting immoderate businesses and investing much heavy successful others. Best of all, anyone who has considered the risks and is consenting to put present and hold tin cod a very fat dividend, which precocious yielded 7.2%. The institution has besides been repurchasing shares (which rewards shareholders by making remaining shares much valuable), sending its full shareholder output up to 11.7%. (General Mills has paid a dividend for 127 consecutive years.)

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