After the recent earnings announcements, it could be possible to get some new interesting picks.
The earnings season started mixed. Some of the great dividend stocks announced better than expected results and the stock price exploded. Others reported bad results and the stock price plunged. I noticed a higher volatility in my trading segment. I personally think that the 10 percent gain on major indices within only 3 month was definitely too much and without value. With the current earnings reports and the ongoing Euro crisis, some investors come back to normal.
What does my screen delivered? One stock that is not yet in my DYPI-Portfolio is Air Products & Chemicals (APD). The company was often subject of my research and highly discussed by my readers. I called APD a Dividend Champion with a higher volatility because in recessions, the earnings could decrease by 50 percent with bad influence to the stock price.
So, my ideas getting rare and I need to find solutions. As a long-term investor, you are not interested in current market situations; you buy a structure with long-term growth potential. Only a growing business is a good business. A company that generates in 10 years the twice amount of sales and 150 percent more earnings should have a higher valuation if further growth is expected.
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| Earnings and Dividends From Air Products And Chemicals |
So, my ideas getting rare and I need to find solutions. As a long-term investor, you are not interested in current market situations; you buy a structure with long-term growth potential. Only a growing business is a good business. A company that generates in 10 years the twice amount of sales and 150 percent more earnings should have a higher valuation if further growth is expected.
APD fulfill these criteria, despite the fact that they are more cyclic like my loving companies McDonalds, Coca Cola or even Procter & Gamble. APD raised its dividends over a period of 31 consecutive years and is a good dividend growth stock. Its current yield amounts to 3.31 percent and the P/E is at 17.49. The forward P/E is still cheap with a ratio of 13.41.
I purchased 15 shares at $85.71. The total amount was $1,285.65 and represents roughly 1.24 percent of the full portfolio market value. The DYPI-Portfolio was funded on October 04, 2012 with $100,000 virtual. The strategy is to buy the best dividend paying growth stocks and hold them for the long-term.
As of now, the current stock holdings produced a gain of 7.63%, a value in-line with the current market developments. Because of the high cash amount of $58,975.02, the full portfolio has only a performance of 3.58 percent.
The new stake will give me around $40 bucks in additional dividends per year. The full year dividend income of the complete portfolio is now estimated at $1,467.76. I plan to boost the income to a total income of $3,000 to $4,000. All I need to do is to buy stocks with a yield of more than 3 percent.
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| Dividend Yield Passive Income Portfolio (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
As of now, the current stock holdings produced a gain of 7.63%, a value in-line with the current market developments. Because of the high cash amount of $58,975.02, the full portfolio has only a performance of 3.58 percent.
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| Portfolio Performance |
The new stake will give me around $40 bucks in additional dividends per year. The full year dividend income of the complete portfolio is now estimated at $1,467.76. I plan to boost the income to a total income of $3,000 to $4,000. All I need to do is to buy stocks with a yield of more than 3 percent.
Here is the income perspective of the portfolio:
Sym | Name | P/E Ratio | Dividend Yield | Buy | # Shrs | Income | Value | |
TRI | 12.9 | 4 | 28.90 | 50 | $64.25 | $1,620.00 | ||
LMT | Lockheed Martin C | 11.37 | 4.53 | 92.72 | 20 | $86.00 | $1,925.60 | |
INTC | Intel Corporation | 10.44 | 3.98 | 21.27 | 50 | $44.25 | $1,122.00 | |
MCD | McDonald's Corpor | 19.01 | 2.88 | 87.33 | 15 | $44.10 | $1,498.80 | |
WU | Western Union Com | 8.59 | 3.1 | 11.95 | 100 | $45.00 | $1,447.00 | |
PM | Philip Morris Int | 17.74 | 3.66 | 85.42 | 20 | $67.18 | $1,839.00 | |
JNJ | Johnson & Johnson | 22.59 | 2.93 | 69.19 | 20 | $48.80 | $1,689.80 | |
MO | Altria Group Inc | 16.84 | 4.99 | 33.48 | 40 | $69.20 | $1,400.80 | |
SYY | Sysco Corporation | 18.8 | 3.21 | 31.65 | 40 | $44.00 | $1,388.40 | |
DRI | Darden Restaurant | 14.89 | 4.1 | 46.66 | 30 | $60.00 | $1,466.70 | |
CA | CA Inc. | 12.43 | 4.09 | 21.86 | 50 | $50.00 | $1,218.00 | |
PG | Procter & Gamble | 18.13 | 2.81 | 68.72 | 25 | $56.20 | $2,035.75 | |
KRFT | Kraft Foods Group | 18.21 | 3.97 | 44.41 | 40 | $80.00 | $2,014.00 | |
MAT | Mattel Inc. | 19.8 | 2.93 | 36.45 | 40 | $51.60 | $1,760.36 | |
PEP | Pepsico Inc. Com | 20.71 | 2.65 | 70.88 | 20 | $43.00 | $1,655.40 | |
KMB | Kimberly-Clark Co | 22.93 | 2.99 | 86.82 | 15 | $45.45 | $1,591.50 | |
COP | ConocoPhillips Co | 8.53 | 4.59 | 61.06 | 20 | $52.80 | $1,149.80 | |
GIS | General Mills In | 18.26 | 2.65 | 42.13 | 30 | $39.60 | $1,510.20 | |
UL | Unilever PLC Comm | 21.16 | 2.97 | 39.65 | 35 | $43.89 | $1,486.45 | |
NSRGY | NESTLE SA REG SHR | 19.61 | 6.14 | 68.69 | 30 | $128.46 | $2,102.70 | |
GE | General Electric | 17.55 | 3.18 | 23.39 | 65 | $46.80 | $1,413.75 | |
ADP | Automatic Data Pr | 22.54 | 2.57 | 61.65 | 25 | $41.50 | $1,630.75 | |
K | Kellogg Company C | 24.31 | 2.7 | 61.52 | 25 | $43.75 | $1,652.50 | |
KO | Coca-Cola Company | 22.03 | 2.48 | 38.83 | 40 | $41.80 | $1,706.40 | |
RTN | Raytheon Company | 10.14 | 3.65 | 57.04 | 20 | $41.00 | $1,143.00 | |
RCI | Rogers Communicat | 15.06 | 3.25 | 51.06 | 30 | $48.69 | $1,513.50 | |
GPC | Genuine Parts Com | 18.19 | 2.69 | 77.06 | 20 | $40.44 | $1,473.20 | |
TSCDY | TESCO PLC SPONS A | 10.33 | 4.22 | 17.98 | 70 | $49.63 | $1,162.00 | |
APD | Air Products and | 15.19 | 3.1 | 85.71 | 15 | $39.45 | $1,285.65 | |
$1,467.76 | $42,455.36 | |||||||
Average Yield | 3.46% | |||||||
Yield On Cost | 3.53% |
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