Burgers for Dinner Earns me Dividends

Mmm delicious!

I posted earlier on my Twitter (@DividendFamilyG) account a picture of some burgers I was grilling for the family.  It cost me $12 for 12 Angus burgers.  These were a whopping 1/3 pound each and did not shrink down when I cooked them.  To top them off I put not one but 2 slices of American cheese on them.  I do love McDonald's (food and stock) but there price for a quarter pounder with cheese is way more than the dollar I spent.  To top it off I played with my kids on our swing set while they were cooking.  Couldn't ask for a better evening.

Why am I talking about burgers?  Well it also got me thinking about the cost of eating out.  I know there are some guys at work that eat out lunch every day.  Mind you this is lunch and not dinner.  It may be a little cheaper than dinner but a high end burger place will easily cost you $12 bucks for the burger (with cheese), fries and a drink.

I eat out maybe once a week so my savings compared to the other guys is (12*5)-12=$48 dollars.  That $48 dollars saved every week will total 48*52=$2,496 dollars in potential savings a year for those that eat out.

If you were to put that money to work in a company like IBM  the dividends from this dividend contender (20 years of paying out increasing dividends) would reward you.  The reward would be $2496/144=~17 shares or  $265.2/year of income from dividends. 

IBM took a drop this week and is looking pretty appealing.  I like the new model they are driving towards and the fact they have reinvented themselves over the past 100 years as a company.  If you can last that long you are a survivor.  The 3.61% yield (and other statistics) is attractive as well and your 17 shares reinvested would compound and reward you further.

What do you think about IBM?

Have a good day everyone!

Dividend Family Guy