Even With Elon Musk's SpaceX Stock (SPCX) Down Below Its IPO Price, I'd Still Rather Buy This Dividend Stock in July

There's been a batch of attraction paid to Elon Musk's institution Space Exploration Technologies (NASDAQ: SPCX), oregon SpaceX, and excitement implicit its debut connected the banal marketplace successful June via an archetypal nationalist offering (IPO). It was a immense IPO, raising immoderate $75 cardinal and seeing the banal surge 19% to $193 connected its archetypal day. But the banal has struggled since and was precocious beneath its IPO price, trading adjacent $126 connected July 17.

Should you put successful SpaceX now? Well, you could. But I deliberation there's a amended banal to buy.

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Consider General Mills

Food elephantine General Mills (NYSE: GIS) is adjacent to the other of SPX Technologies. Founded 160 years ago, successful 1866, it's grown to beryllium a powerhouse successful the nutrient sector, with brands specified arsenic Annie's, Betty Crocker, Bisquick, Cascadian Farm, Cheerios, Chex, Cinnamon Toast Crunch, Gold Medal, Green Giant, Kix, Larabar, Nature Valley, Old El Paso, Progresso, Totino's, Wanchai Ferry, and Wheaties -- among galore others.

Why put successful this specializer successful cereals and overmuch more? Well, respective reasons:

First, it's a coagulated dividend-paying stock, with a boffo caller dividend output of 6.3%. Better still, the institution has besides been repurchasing shares (which rewards shareholders by making remaining shares much valuable), sending its full shareholder output up to a caller 8.7%. (General Mills has paid a dividend for 127 consecutive years.)

The banal is besides looking undervalued, with a caller forward-looking price-to-earnings (P/E) ratio of 12.5, good beneath the five-year mean of 15, and a price-to-sales ratio of 1.1, good beneath the five-year mean of 1.8.

The banal is appealingly priced, mostly due to the fact that it has fallen lately -- averaging yearly losses of 15% implicit the past 3 years. In its third-quarter report, absorption pointed to respective issues that affected its 3rd quarter: retailer inventories and weather-related proviso concatenation disruptions, on with brand-improving investments, divestitures, and unfavorable commercialized disbursal timing, among others. It noted, though, that these "timing headwinds [are] expected to go tailwinds successful Q4."

In the 4th quarter, CEO Jeff Harmening pointed to a continuing turnaround:

We are laser focused connected expanding our ratio to assistance offset elevated inflation, money our maturation investments, and make stronger net and currency flow. ... We're targeting $3 cardinal successful cumulative outgo savings by fiscal 2030. ... I'm assured we're connected the way to restoring profitable maturation and driving shareholder worth implicit the agelong term.