Income Investors, look at this opportunity for both income and diversification; Sonoco, symbol SON pulls this whole package together. Sonoco is a leader in packing materials and products. Sonoco sells most of its products in the US but has some international sales. SON is a good diversification consideration for income investors because packaging is an industry where few companies share as much income with us as SON. At Thursday’s closing price of $34.74 SON provides a dividend of $1.16 per share per year for a yield of 3.34%
.
Sonoco’s (this is not Sunoco the oil company) earnings per share (EPS) a measure that I continue to believe is the easiest measure of earnings for ordinary investors, are vulnerable to the overall economy. Currently EPS are about $2.00 per share per year. Yet in spite of a dismal 2009 and 2010, SON raised the dividend every year. Folks this means a lot.
Sonoco qualifies as a dividend machine as a solid company. Debt to equity (D/E) ratio is .42.
Sonoco, symbol SON, a diversification dividend machine worth a review; it makes more money than it pays out; it pays at least 3%; it has raised the dividend every year for at least 5 years and it has a solid balance sheet.
Very Truly Yours,
TheMoneyMadam
