Why General Mills’ (GIS) Long Dividend Record Still Leaves Investors With Current-Year Taxable Income General Mills, Inc. (NYSE:GIS) is one of the dividend stocks picked by financial media as investors ask whether dividend stocks are tax-efficient.
On July 1, General Mills reported fiscal fourth-quarter results and said its board declared a quarterly dividend at the prevailing rate of $0.61 per share, payable August 3 to shareholders of record on July 10
The company also said General Mills and its predecessor company have paid dividends without interruption for 127 years. The tax angle is not that a high-yield food stock avoids taxes. A regular corporate dividend can generally qualify for preferential dividend tax treatment when holding-period rules are met, but the cash still becomes taxable income when received.
That makes General Mills a useful example of the tradeoff. The distribution has a simpler tax structure than many pass-through income vehicles, but a larger cash yield can also create more current-year taxable income than a lower-yield stock that returns more value through price appreciation or buybacks. marilyn barbone/ General Mills, Inc. (NYSE:GIS) manufactures and markets branded consumer foods, including meals, cereal, snacks, yogurt, baking products, and pet food. While we acknowledge the potential of GIS as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk.