General Mills' (NYSE: GIS) stock has rallied nearly 20% this year against the S&P 500's 1% decline. The rally was unusual for the packaged foods giant, which has underperformed the index over the past decade, but it was driven by two main tailwinds.
First, macro headwinds -- including the U.S.-China trade war, COVID-19 crisis, and high unemployment rates -- caused many investors to buy defensive stocks with high dividend yields. Second, the COVID-19 crisis sparked waves of panic shopping and boosted sales of General Mills' products, including Cheerios cereal, Yoplait yogurt, and Häagen-Dazs ice cream.
Will those tailwinds fade and cause General Mills' stock to give up its gains? Or does this defensive dividend stock still have room to run in a volatile market?
Source Fool.com