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| English: A Navistar International truck operated by Sysco docked at Duke Hospital South in Durham, North Carolina. (Photo credit: Wikipedia) |
Their combined company would own about 25% of the market for food distributors. Of course the government worries about these types of mergers.
As an income investor I do not think SYY's merger will jeopardize the dividend but it may cause the stock price to be rocky.
SYY was a 2013 Dividend Machine http://www.themoneymadam.com/2013/03/syy-dividend-machine-for-march-12-2013.html. Today it does not quite qualify as the yield is only 3%. But on every other level it is still a good income investment.
As boring as a good distributor may be, SYY has a nice call today. This November $40 call expires after the next dividend date so you would pocket both the call premium and the dividend. See the table below for details.
TheMoneyMadam
