Sysco: Time to Clear the Table
04/07/2010 5:00 pm EST
I’m selling food wholesaler Sysco Corp (NYSE: SYY) out of my Dividend Income Portfolio with this post. The stock made a new 52-week high yesterday, April 6. That brings the dividend yield down to 3.38%. That was attractive when the economic recovery still seemed iffy and I was willing to trade some yield for safety. But now that the recovery is more certain—if not the speed or momentum of the recovery (for more on those issues, see this recent post)—I’m willing to stretch a little more for yield. To do that, I need to clear a slot in this ten-stock portfolio, and that means selling Sysco.
I’m looking at a 5.27% gain in the stock’s price since I added it to this portfolio on December 8. On April 23, I’ll also be collecting the 25 cents-a-share quarterly dividend that the company recently declared for shareholders of record as of April 1.
Full disclosure: I don’t own shares of any stock mentioned in this post.