Sunday, December 12, 2010

Dividend Machine Sysco Corp., SYY

Put Sysco Corporation's dividend (symbol SYY) on your table and watch your income grow over 11 percent in 5 years. Can you think of another income source that has grown over 11 percent in the past 5 years?Sysco is number five of the fifty two dividend machines that I will profile for your income investing portfolio.

Certainly bonds have not increased income. How about your real estate, has your real estate income increased lately?

Sysco, food wholesaler with earnings of $1.94 per share and a dividend of $1.04 per share per year, yields 3.54%; based on the closing price on Friday, December 10, 2010 of $29.42.

Cash flow is everything to the income investor and especially to retired income investors and SYY meets all of our criteria: (1) it makes money, (2) it shares income with us in a dividend, (3) it regularly increases the dividend and (4) and it has a solid balance sheet with a D/E (debt to equity ratio) of .63.

Each week I profile a company that you can use as an example to learn how to create cash flow and invest for income and the winner this week is SYY.

Very Truly Yours,