Have You Noticed That Many Dividend Stocks are Finally in a Bear Market? General Mills Inc.: Part 1


For quite some time I have been complaining that most best-of-breed dividend growth stocks were overvalued. Frankly, for the most part I continue to hold that opinion. On the other hand, I am also starting to see what I’ll call a stealth bear market for many dividend growth stocks. In some cases, this stealth bear market has brought several dividend growth stocks close to fair value, and in a few cases down to undervalued territory. Furthermore, there are also dividend growth stocks that have fallen 10% to 20% or more and yet remain significantly overvalued.

Consequently, I am beginning to suspect that my long-awaited reversion to the mean may finally be happening. However, so far valuation reversions have been somewhat selective. In other words, although the valuations of most high-quality dividend stocks remain extended, the stock prices of several specific individual dividend growth stocks have been dropping and/or moving sideways recently.

Therefore, I thought it would be helpful to provide FAST Graphs analyze out loud videos on several dividend growth stocks that have corrected from high valuation levels to more reasonable levels. My first research candidate is General Mills Inc (GIS). The following slide summarizes General Mills’ business makeup.