General Mills (GIS) is facing significant challenges due to rising GLP-1 drug usage, projected to see 55 million Americans on these medications by 2035, impacting demand for its traditional snacks. The company reported an 80% payout ratio on its 6.7% dividend, raising concerns about sustainability as GIS has yielded a negative 18% over the past decade compared to a nearly 300% rise in the S&P 500.
Coca-Cola (KO) is also struggling with a shift towards healthier options, maintaining a low 2.7% dividend yield and minimal growth in payouts. Despite offering low-calorie alternatives, its stock has shown a downturn of 11.7% this year, suggesting it may not provide satisfactory returns for investors relying on dividends.
In contrast, Hershey Co. (HSY) is seeing growth with forecast earnings rises and a 6% dividend increase, driven by changes in consumer preferences towards smaller indulgent snacks. Visa (V) continues to perform well, with a 15% jump in revenue for Q1 2026, despite a yield of only 0.7%, indicating strong underlying growth potential in the payments sector.
