Monday, April 25, 2011

Sonoco Products, symbol SON, Dividend Machine for 4_25_2011

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,

Enhanced by Zemanta