Monday, August 29, 2011

Travelers Company, symbol TRV Dividend Machine for August 29, 2011

          Income investors take note that during down markets, we have more choices for income investing than we have during up markets.  I was torn between profiling another utility or looking for a company in another industry.

           I elected to select insurer Travelers, symbol TRV as the dividend machine for August 29, 2011. TRV is only the second insurer I have profiled so far this year.    TRV earns $4.05 per share per year and pays out $1.12 per share per year.  If you own it by September 6, 2011 you will be paid the quarterly dividend of $.41 per share on September 30, 2011.  The yield, based on the closing price on Friday, September 26, 2011 of $48.30 was 3.4%.  Travlers' D/E ratio is .26; a low risk company.

          While it may seem odd to profile an insurance company when all we hear about is the damage from Hurricane Irene, look at the history of natural disasters and you will find that insurers do quite well.

          We have a strong company, with a good payout that meets all our income investing criteria.  Consider TRV for the income producing portion of your portfolio.

Very Truly Yours,

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