Monday, April 18, 2011

Conagra, symbol CAG your dividend machine idea for April 18, 2011

Income investors find the money they invest tends to be in companies that produce the stuff we need every day.  Conagra, symbol CAG a food producer qualifies as producing the stuff we need every day.  Moreover, CAG feeds a lot of the world.

As a dividend machine, Conagra currently meets all the criteria of a dividend machine.  CAG earns $1.47 per share per year.  It pays $.92 per share per year.  Their next quarterly dividend of $.23 has been declared by the board of directors and is scheduled for June 1, 2011 provided you own the shares by April 27, 2011. 

At Friday’s closing price of $24.69, CAG’s dividend yield is a nice $3.48%.  In addition CAG has grown the dividend every year for at least the past five years.   The five year average dividend increase is about 3.5% every year.  Do you not wish your social security check had gone up that much every year?  Furthermore, Conagra has done a nice job of managing debt and currently sports a D/E (debt to equity ratio) of .70.

Income investors, consider CAG as a spring addition to the portion of your portfolio dedicated to cash flow.

Very Truly Yours,
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