Cash Flow Strategy
Trade for profit then Invest in dividends
At an earlier time in TheMoneyMadam's life, Qualcomm was a hot stock and my clients made a lot of money on QCOM. We all sold and invested our profit in stocks that not only pay a dividend but increase it every year. And, we want a company with minimal debt so we don't have to deal with the bankruptcy stuff. Lo and behold, we are again invested in QCOM. We get dividends and we get call option income and the company has almost no debt. Yummy income indeed.
The point is to take a little profit from your Googles and Apples and put it in a dividend producer. When you are ready to use your money instead of your time to make money, you will thank me.
December 13, 2010
Dividend Machine SYY
Put Sysco Corporation’s dividend (symbol SYY) on your table and watch your income grow over 11 percent in 5 years. Can you think of another income source that has grown over 11 percent in the past 5 years? Certainly bonds have not increased income. How about your real estate, has your real estate income increased lately?
Sysco, food wholesaler with earnings of $1.94 per share and a dividend of $1.04 per share per year, yields 3.54%; based on the closing price on Friday, December 10, 2010.
Cash flow is everything to the income investor and especially to retired income investors and SYY meets all of our criteria: (1) it makes money, (2) it shares income with us in a dividend, (3) it regularly increases the dividend and (4) and it has a solid balance sheet with a D/E (debt to equity ratio) of .63.
Each week I profile a company that you can use as an example to learn how to create cash flow and invest for income and the winner this week is SYY.
Very Truly Yours,