05-08-2018, 09:23 PM
I come up with debt/equity ratio of 2.2 from their most annual report. Debt levels aren't everything but that's pretty high. I try not to let debt levels be a deal breaker but I've found that my personal avoidance of debt translates into a preference for low-debt companies.
That said, a ~4.5% dividend yield from a non-REIT is pretty nice. GIS's dividend has represented about 40%-50% of its cash flow from operations over the past three years. Capital expenditures have averaged about 30%. That gives a a 20%-30% cushion for share repurchases and management of debt principal payments. All of this makes me think that future dividends will be steady.
That said, a ~4.5% dividend yield from a non-REIT is pretty nice. GIS's dividend has represented about 40%-50% of its cash flow from operations over the past three years. Capital expenditures have averaged about 30%. That gives a a 20%-30% cushion for share repurchases and management of debt principal payments. All of this makes me think that future dividends will be steady.