Monday, July 18, 2011

Pitney Bowes, symbol PBI dividend machine for July 18, 2011

A German postage meter marking made with a Pit...Image via Wikipedia
                This week’s dividend machine is one boring company. 

Pitney Bowes, symbol PBI, was a household name a few years ago.  They made postage meters, which is pretty boring.  Now that fewer and fewer pieces of mail are used in commerce, Pitney Bowes had to make changes.  Now PBI has business activities globally serving small and medium businesses with equipment servicing, credit approval limits, and leases and internal financing operations assistance.

Nevertheless, PBI is still boring.  PBI is truly a dividend machine.  Income investors should buy this kind of company because they want a stock that will increase the dividend through thick and thin but have little hope of a capital gain.

PBI’s closing stock price on Friday July 15, 2011 was $22.13.  This is not an expensive stock.  PBI's dividend yield is 6.64 percent, which is the only non-boring aspect of this company.  With no debt, it is a very solid company.   If you own PBI by August 10, 2011, you will receive the quarterly dividend of $.37 on September 12, 2011.  Earnings are $1.46 per year.

Buy it and forget it.

Very Truly Yours,
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