Call Us Toll Free: 1-800-388-9993

_______________________

Dear DRIP Investors,


We have been helping people enroll in DRIPs since 1986. Many of our subscribers have written to express their thanks and describe the outcome of their DRIP investments. It has been a source of pride and our great pleasure to have assisted in your efforts to secure financial security.


However, after 35 years we have decided to stop fulfilling orders for enrollments after the March cycle. Moneypaper, via the directinvesting.com website, will continue to provide information about DRIPs and the enrollment process.


As always, good luck,

Vita Nelson


 

 

Monthly Stock Special

The featured DRIP is *General Mills Inc. (GIS).

Here is a capsule review of our featured stock, provided by Mario Medina.

Company Information:

Founded in 1856 and headquartered in Golden Valley, Minnesota, General Mills is a leading global manufacturer and marketer of branded consumer foods, such as ready-to-eat breakfast cereals, refrigerated dough and other baking items, snack foods, ice cream, and yogurt. Its portfolio of well-known brands includes Cheerios, Betty Crocker, Pillsbury, Haagen-Dazs, and Yoplait. Sales outside the U.S. account for just less than one fourth of total sales. General Mills is considered a defensive stock, because it provides constant dividend and stable earnings, regardless of the state of the overall stock market, as a consequence of the constant demand for its products. As a defensive stock, it tends to remain stable during the various phases of the business cycle, and tends to perform better than the broader market during recessions.

Its current total market capitalization of $35.5 billion makes GIS a large capitalization stock (a large-cap stock has a market capitalization value of more than $10 billion) with a long history of consistent dividend payments, revenues and earnings growth. It is considered a solid and well-diversified business with a wide economic moat and a durable competitive advantage over its rivals, which also enjoys a solid management and corporate culture. According to Yahoo! Finance, consensus estimates call for the company to earn about $3.76 per share this year, up from $3.61 per share in 2020. GIS has paid dividends to investors since 1898 and during the past twenty years the company has increased the dividends from 41 cents per share in the year 2001 to $1.98 per share in 2020. Its current Forward Dividend Yield is 3.51%

The value of dividends reinvestment: A hypothetical investment in General Mills Inc. has grown cumulatively (including dividends reinvested) 11,360% during the past forty years. The same investment has grown only 3,840.13% in the same period of time, excluding dividends. During that time, a hypothetical investment in the S&P 500® index (through the Vanguard 500 Index Admiral (VFIAX) has grown cumulatively 7,528.31%, including dividends reinvested. According to the data and calculations of the financial website dqydj.com (don’t quit your day job), a hypothetical periodic monthly investment of $100 in GIS for the past forty years would have grown to $10,661,971, including dividends reinvested. GIS still has room for significant dividend payments and dividend increases in the coming years, since the company's current Dividend Payout Ratio (DPR), which is its dividend payments as a percentage of its earnings, is just 51%. Its average DPR during the past five years is 61%.

Its current Price to Earnings ratio (P/E --a measure of valuation) of 14.9 is 47.1% below the US Market Index, and its Forward P/E ratio is 15.5. Its Price to Sales ratio (P/Sales) of 1.96 is 29.2% below the Market, and its Price to Cash Flow (P/Cash Flow) of 9.8 is 39.4% below the index. According to Morningstar, the stock is trading at a 2% discount, making it attractive for investors with a long-term investment horizon.

Technically (from the chart’s perspective) GIS also looks attractive, trading 20.4% below its all-time high), while it is forming a long base pattern, between $66 and $36 approximately, in which $36 is acting as a technical support level. The actively managed mutual funds American Funds Income Fund of America and American Funds American Mutual are major shareholders of GIS, holding 3.0% and 2.6% of its shares respectively. The stock is also one of the 63 holdings of the mutual fund managed by Moneypaper Advisors, the MP 63 Fund (DRIPX). GIS’ main competitors are Kellogg Co. (K) and Conagra Brands Inc. (CAG).

General Mills’ 5-year Beta (a measure of the volatility, or systematic risk in comparison to the market as a whole as evidenced by the S&P 500® Index) is 0.55, so the stock is 45% less volatile than the Market. Best and worst years during the past 40 years: Its best year was 1991, in which GIS returned, excluding dividends, 50.3%. On the flip side, its worst year was 2018, when the stock declined 34.3% excluding dividends. GIS’ Dividend Reinvestment Plan charges no fees for cash investing, dividend reinvestment, automatic investment or termination of the plan. With the stock being fundamental and technically attractive, this company might be an appropriate holding for investors who wish to build a holding over the long term.

Disclosure: Mario Medina is a long-term investor in General Mills Inc., and his investment strategy consists of investing small amounts periodically (also known as dollar-cost average or DCA), with a long-term view. The author is also the Portfolio Co-manager of the MP 63 Fund (DRIPX), which does hold a position in the company. The author wrote the article himself and it expresses his own opinions. The author has no business relationship with GIS and this article is not intended as a recommendation to invest as the information published does not take into account any subscriber's personal finances, goals or risk tolerance. Accordingly, you should be aware of all the risks associated with any financial investment and should consult an independent financial advisor for any personal investment advice. Past results and risks illustrated in the article are for reference and educational purpose only and do not guarantee future performance.

 

Mario Medina Personal and Professional background:

Born in Cuba and graduated in Architecture from the University of Havana, Mario Medina is editor and writer of the weekly online investment newsletter El Boletín, and senior analyst for Julie Stav, Inc. Through seminars and conferences live and online, DVDs, investment e-books, articles in his blog and financial columns (on www.invierteconmario.com, www.comunidadtudinero.com and www.directinvesting.com), videos and Podcasts, Mario teaches people inside and outside the United States. The point that differentiates Mario in his teachings, is the simplicity and softness of the language, teaching beginners, the same way he wanted to be educated when starting in the world of personal finances and investments.

Mario provides investment guidance in financial segments of Hispanic television and radio, and has had his own radio shows on those topics at Univision Radio Network, also participating in Tu Dinero, Julie Stav’s financial shows and Podcast series (www.revolverpodcasts.com and www.juliestav.com)

Analyzing the status of the market and its indexes, examining leading companies, sectors and industries, and evaluating the performance of Julie Stav’s Platinum List of Companies, his popular online Daily Market Report allows thousands of people from across the country to follow the situation of the financial world and get the essential information they need to make the best decisions about their own investments.

Today, Mario provides independent fundamental and technical analysis for the mutual fund MoneyPaper 63 (DRIPX), which is the only fund that focuses solely in companies that offer small investors Dividend Re-investment Plans. He is also a regular contributor to directinvesting.com.

Today, those who read the articles written by Mario Medina, or those who daily follow his Market Report, listen to his segments, watch his videos, or attend his seminars, could not imagine that a little over a decade ago its author knew nothing about investments or the stock market. It has been a long, arduous road for the young man newly arrived to the US with empty pockets, a suitcase full of dreams, and whose first savings came from collecting empty soda cans and recycling scrap yard. After discovering the world of finance through books and radio programs, and after years of study and sacrifice, Mario Medina now advises thousands of Hispanics on how and when to buy or sell in the stock market in order to obtain the best returns and minimize their losses.

What was the secret that allowed Mario to develop those early, small investments? "I think the key is to save and invest on a regular basis, with clearly defined long-term, diversified goals," he says. "To do so, each person must determine his o her risk tolerance level ... I do not feel comfortable risking as much as other people, and in turn many risk more than me. It is essential to know how far one can get without trying to beat the stock market every day.”

Through his regular segments, articles and analysis, Mario wants to offer everyone his successful strategies so that anyone can make the most of their work, their savings and their investments, and realize their dreams of economic prosperity. Mario Medina’s own dream is to help those interested in managing their money by knowing the risks and investing directly in the very best, teaching them the necessary steps to succeed in the stock market and other investments, participating in it directly and without brokers, so they can manage their money more efficiently and get better returns without paying more fees.