General Mills is focused on maintaining its disciplined approach to capital allocation, beginning with capital investment into the business at roughly 4% of net sales in fiscal 2024. Dividend growth is the second capital priority, and the company announced a 9% increase to its quarterly dividend rate effective with the August 2023 payment. With debt leverage comfortably below its 3.0x target, the company has ample capacity to further reshape its portfolio with growth- and value-accretive acquisitions. After M&A, the company targets returning remaining cash to shareholders via share repurchases, which are expected to reduce average net shares outstanding by roughly 2% in fiscal 2024.
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