MINNEAPOLIS — The board of directors for General Mills, Inc. on June 28 raised the company’s quarterly dividend rate 16.7%, to 28c per share from 24c per share. The new dividend is payable Aug. 2, 2010, to shareholders of record as of July 12, 2010. The new annualized dividend rate of $1.12 per share represents a 17% increase over dividends of 96c per share paid in fiscal 2010.

“Strong and growing cash dividends are an important component of General Mills’ total return to our shareholders,” said Ken Powell, chairman and chief executive officer. “The dividend increase announced today is a reflection of our company’s robust financial condition and excellent future growth prospects.”

The company’s board also approved an authorization for the company to repurchase up to 100 million common shares. The new authorization replaces the previous repurchase authorization established in December 2006, and it has no expiration date.