If you have been following the tips on this and other blogs you will become a producer instead of a consumer. And you will find joy in the simple life. And eventually, ever so slowly, even with a gigantic tuition you will have some money to put aside. For me that goes into dividend stocks that are high quality, repeat business companies that align with my values.

This month it is J. M. Smucker. At it’s current price of $105 this is a good source of savings and income.

Peanut butter

I have been watching SJM for a while now – it has a lot I like- automatic pilot repeat purchase items with good return on equity (10%) and a long history *and* is majority family owned so they won’t risk the company on making some bold acquisition. They have been slowly picking up brands over the decades.

 

Thursday the stock dropped a nice 10% after a missed quarter and I noticed it today at the 52 week low. The earnings yield is 7% – I prefer 10% but for such an excellent company with good finances and safety I am willing to pay more. Not perfect but 25 years from now it will be as reasonable return.

A 7% yield on a 11 billion company where people use their products daily – out of habit to eat and enjoy. Wonderful!

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