Hormel and General Mills: 5.2% and 6.5% Dividend Yields
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- Hormel Foods (HRL) and General Mills (GIS) are under pressure from budget-tightening consumers and the rise of GLP-1 weight-loss drugs, which are changing how Americans eat, spooking investors in traditional food makers
- Hormel is a Dividend King with 60+ consecutive years of dividend increases, while General Mills has paid dividends for 127 years running, with current yields of 5.2% and 6.5% respectively — historically high levels
- Hormel's protein-focused brand strategy is gaining relevance as GLP-1 users increase protein intake to prevent muscle loss, while General Mills has divested stagnant brands like Hamburger Helper and leaned into faster-growing categories like pet food
- Both stocks have price-to-sales and price-to-book ratios well below their five-year averages, reinforcing the value case even as P/E ratios are distorted by earnings pressure
- A $1,000 investment buys approximately 26 shares of General Mills or 45 shares of Hormel, locking in yields from companies that make necessity goods expected to hold up through recessions and bear markets
Why it matters: For income investors, Hormel and General Mills are offering historically high entry points into recession-resistant consumer staples at a moment when both companies are actively reshaping their portfolios — Hormel betting on protein to capture GLP-1 users and General Mills shedding legacy brands like Hamburger Helper to grow pet food. A buyer today gets a 5–6.5% yield from two companies that have paid and raised dividends for 60+ and 127 years respectively, and that have proven they can survive tough cycles.
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