General Mills (GIS) will raise its quarterly dividend by 4.1 percent to $0.51 per share in 2020. This is the first dividend increase announced by the packaged food and pet food company since 2017. Because General Mills did not announced a higher dividend in both 2018 and 2019 the company's track record of 15 consecutive years of increases ended last year.

The next quarterly dividend of 51 cents per share will be payable November 2, 2020, to shareholders of record October 9, 2020. A new annual dividend rate of $2.04 per share will yield 3.5% based on a closing price of $57.99 this Tuesday.

General Mills mentions that the dividend increase is in recognition of the significant increase in net earnings attributable to General Mills and the reduction in net debt since the company’s acquisition of Blue Buffalo Pet Products, Inc. in April 2018.

In the company's press release dated September 23, 2020 the company reports fiscal 2021 first quarter results and also announces the dividend hike. “We continued to drive exceptional results this quarter, highlighted by broad-based market share gains amid elevated at-home food demand due to the COVID-19 pandemic,” said General Mills Chairman and Chief Executive Officer Jeff Harmening in the company's press release. “The fundamentals of our business are strong. We’re investing in our brands, executing with speed and agility, and maintaining our focus on the health and safety of our employees and our consumers. And, importantly, we’re resuming dividend growth sooner than initially planned. I’m more confident than ever that General Mills is poised to emerge from the pandemic a stronger company and in a position to generate consistent, profitable growth and top-tier returns for our shareholders.”

General Mills is known for its long and strong dividend history with General Mills and its predecessor company having paid dividends without interruption for 121 years. Currently General Mills will pay an estimated $1.24 billion in dividends to its shareholders annually. The last time the company announced a double digit dividend hike was in 2013 (+15.2 percent).

General Mills, Inc. is a manufacturer and marketer of branded consumer foods and pet food products sold through retail stores and online. Its brands include Cheerios, Annie's, Betty Crocker and Blue Buffalo Pet Products. General Mills has four segments: U.S. Retail, International, Pet operating, and Convenience Stores and Foodservice. The company's Convenience Stores and Foodservice segment's product categories include ready-to-eat cereals, snacks, refrigerated yogurt, frozen meals, unbaked and fully baked frozen dough products, and baking mixes. In 2018 General Mills acquired Blue Buffalo Pet Products, Inc. The company has paid a dividend to its shareholders every year since at least 1899.