General Mills extends its 124-year record of dividend growth

General Mills (NYSE: GIS), the giant agricultural commodity company, reported mixed results and hiked dividends by 9%. The company’s net sales rose by 3% in the fourth quarter to over $5 billion. Organic sales rose by 1%, helped by positive organic net price realization and mix.

Other parts of the report were mixed. Its gross margin dropped by 180 basis points to 34.4%. Further, its operating profit of $818 million was about 19% from the same period last year. Its operating margin dropped to 16.3%.

For the year, General Mills net sales rose by 6% to over $20.1 billion. Its gross margin for the year dropped to 32.6% while its operating profit dropped to $3.4 billion. 

The most important part of the report was the company’s decision to boost its dividend by 9%. It will pay a $0.60 dividend on August 1st of this year. This means that the company has paid a dividend for 124 years without disruption. 

General Mills expect that its organic net sales will rise to between 3% and 4% this year. Its adjusted operating is expected to grow by between 4% to 6% to over $3.5 billion. In a statement, the company’s CEO said:

General Mills stock price dropped by more than 4% in the pre-market session.