Meet the Value Stock With a 6.6% Dividend Yield That's Begging to Be Bought in April

Like many packaged food companies, General Mills (NYSE: GIS) has seen its stock price crash to multi-year lows. That's a term I don't use lightly, but it's fitting in this instance. The stock is down 36.7% in the last year and has fallen 40% in the last decade, compared to a 222% gain in the S&P 500 (SNPINDEX: ^GSPC).

The sell-off, paired with modest dividend increases, has pushed General Mills' dividend yield up to 6.6%. For context, popular consumer staples dividend stocks Coca-Cola and PepsiCo yield 2.8% and 3.8%, respectively.

Here's why the sell-off in General Mills has gone from bad to worse, and why the value stock is a high-conviction buy now.

Image source: Getty Images.

The slowdown is accelerating

General Mills is forecasting a 16% to 20% decline in fiscal 2026 (ending in late May) adjusted earnings per share (EPS) -- a most unwelcomed encore to its 7% adjusted EPS decline in fiscal 2025.

Inflationary pressures are eating into General Mills' margins, and it hasn't been able to offset those costs with volume and price increases. What's more, its latest quarterly results don't reflect the rise in oil prices, which is another inflationary input that further strains household budgets.

Investors are souring on consumer-facing companies that sell products people don't need, such as discretionary goods and services. But packaged foods have been lumped into that negative sentiment because some investors no longer view frozen pizza and processed treats as being as essential as toothpaste and laundry detergent.

Fair enough. But there's reason to believe General Mills is being unfairly punished.

General Mills is adapting

General Mills has some processed brands like Totino's, which it explicitly called out as an area of weakness on its March earnings call. But it also has a lot of brands that can thrive as consumers shift toward healthier options. Group President of North American retail and North American Pet Dana McNabb said the following on the third-quarter fiscal 2026 earnings call:

Our Nature Valley business is performing pretty well. Our proteins are doing really well, our wafers business is doing really well, and actually Fiber One is on the comeback with GLP-1 users, but it is still down. In Grain, consumers are moving toward more performance nutrition.

General Mills is recognizing the importance of offering snacks and meals that taste good but also help with weight loss goals, which is why it's focusing heavily on protein and fiber innovation with the expansion of Cheerios Protein (launched in December 2024 and forecasted to be a $100 million brand) and "Ghost" versions of its popular cereals that include more protein. Ghost is a lifestyle and sports nutrition brand.

General Mills is expanding the Cheerios protein line beyond cinnamon and strawberry to include Honey Nut Cheerios, and said it is seeing strong returns from its recently launched Ghost protein bars.

A top dividend stock to buy now

General Mills is one of my highest-conviction high-yield dividend stocks to buy now. The valuation is beyond cheap, the dividend remains affordable based on free cash flow guidance, the stock yields a sizable 6.6%, and the brand portfolio is well-positioned to adapt to health trends.

The company has made strides in cutting costs and improving its balance sheet, and has a clear path to recovering in the next few years -- making it a great buy for patient income investors.

Daniel Foelber has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.