Monday, March 11, 2013

SYY - Dividend Machine for March 12, 2013

Sysco
Sysco (Photo credit: Wikipedia)

Dividend Machine for week of March 12, 2013 Sysco, symbol SYY.  This is food for thought!


Sysco, Inc. is North America’s largest food distributor and provider of other food related products.  Sysco was formed when nine companies combined in 1970.  It has been a symbol of steady dividend growth which is why it qualifies as a dividend machine.   I own SYY and will add to my position.  See SYY’s dividend fundamentals below.


SYSCO’s DIVIDEND MACHINE FUNDAMENTALS

DIVIDEND MACHINE
3/11/2013
            Sysco
SYY
Price when profiled
$33.27
Last 4 Qtrs Earnings
$1.84
Last 4 Qtrs Dividends
$1.11
Current Qtr Dividend
$0.270
Annualized Div Yield
3.246%
No. Years Div Increase
      since 2001
Debt/Equity ratio
0.63%
Sysco closed on Friday, March 8, 2013 at $33.27.  During the past four quarters the company earned $1.84.  Their dividend payout during that same period of time was $1.11.  Their most current quarterly dividend is $.27 which is a yield of 3.246%.   


Sysco is a solid company.  Their debt to equity (D/E) ratio is only.63.  You may recall that a D/E ratio of 1 or less is what we look for in a company.   One thing dividend investors never want to face is a company that has too much debt and could lower their dividend in order to meet debt obligations.  


Sysco also has a wonderful dividend history.  They have raised the dividend at least every year since 2001.   This history is comforting.  We income investors must receive ever increasing income from the companies we buy.


Sysco has been in my portfolio since I found it met all the conditions of a dividend machine about one year ago.  I have provided a link to my original post on SYY.   I have been rewarded with a very nice capital gain as well as a healthy dividend history.


Consider SYY for the income producing portion of your portfolio.

TheMoneyMadam
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