Monday, January 17, 2011

Dividend Machine Southern Companies, SO

Southern Companies, symbol SO, has been in my portfolio for a long, long time. I reinvested the dividend for years and years until I retired and then I turned on that dividend spigot. By reinvesting my dividend over so many years, I lowered my cost basis in SO to about $12 a share. Southern Companies is number nine of fifty two dividend machines I will profile for your income investment portfolio.

Southern Companies makes about $1.82 per share per year and continues to increase sales, earnings, profit and dividends every year. If you buy SO before February 3, 2011, you will receive $.455 on March 5. At the closing price on Friday January 14, 2011 of $38.50, your dividend yield will be 4.75%. At my cost basis of $12, the dividend yield is 15% and growing. Take note income investors. Start early, be patient, reinvest and turn on the income spigot when you need it.

Diversification of your income investments is important but you will end up with a few utilities. Make Southern Companies one of them. Create your cash flow strategy using dividend machines, bond interest, and covered calls then gradually invest to create enough income to quit working.

Very Truly Yours,