Monday, November 7, 2011

Dividend machine for November 7, 2011 Darden Restaurants, symbol DRI

The company's former logo, used until 2009Image via Wikipedia

                Income investors, the 52nd dividend machine is Darden Restaurants, symbol DRI.  DRI provides income investors with an opportunity to diversify.  You know we tend to be heavy into industrials, telecoms, utilities, and big pharma, so it is important to add a dividend machine, our final dividend machine for (fiscal year 2011), that meets all the criteria and that adds some diversification.

            DRI operates nearly 2,000 restaurants which generates earnings of $3.38 per share.   Darden pays a quarterly dividend of $.43; on an annual basis the income is $1.72 per share per year.  At the closing price on Friday, November 4, 2011 of $47.36, DRI’s dividend yield is 3.63%.

            DRI has increased the dividend every year for at least five years.  Their D/E ratio is .94.  Darden is a good fit for those of you who want a solid dividend machine for the income producing portion of your investment portfolio.
            During the remaining 7 weeks of 2011, I will analyze this income investing project with special emphasis on the 52 dividend machines profiled to date.  In 2012, I will start again with a dividend machine every week with opinion and ideas on covered call and interest income.  Stay tuned.  Use these posts as an opportunity to learn how to maximize your income with minimal risk.

Very Truly Yours,
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