Today I made my first equity purchase in my non-registered portfolio since February. I doubled my position in food service firm SYSCO (SYY) at $22.95/share. For my thoughts on SYSCO click here.
About half of this purchase was made with dividends and distributions which I've received over the past few months.
Like all of my other holdings, SYSCO will be a long term piece of my portfolio. The stock currently yields more than 4%, and trades at a P/E ratio that is well below it's historical average. The company is having a flat 2009 due to the recession, however I expect the company to come out of this downturn with more market share, and to return to earnings growth that will warrant a P/E north of where it is today. The restaurant industry is under a dark cloud right now due to the downturn in consumer discretionary purchases. I believe in due time this area will pick up and SYSCO will benefit.
1 comment:
I am tempted to get into SYY, but I think I can get more of a pullback first, but it does seem attractively valued to me.
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