I made the decision last Friday to increase my British American Tobacco Stake. I purchased 10 additional shares and increased the current position by 77 percent. The new total purchase amount is now at USD 2,555.90. BTI is now the biggest stake in my Dividend Yield Passive Income Portfolio.BTI is a big player within the tobacco sector. I believe in the strong brands of the company and the leading market positions of the major core markets.
The tobacco company has a also a strong cash flow. Last fiscal year, BTI generated around USD 4.4 billion in cash at spend only 400 million net for investing activities. The current price for that entity is USD 100 billion. Not cheap definitely but high quality is also highly valuated.
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| Latest Portfolio Transactions (Click to enlarge) |
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For readers who a new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.
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| Dividend Yield Passive Income Portfolio I (Click to enlarge) |
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| Dividend Yield Passive Income Portfolio II (Click to enlarge) |
My current dividend income is now estimated at USD 2,061.71 for the full year. The current yield on cost amounts to 3.51 percent while the average portfolio yield is at 3.22 percent.
The strategy I follow is a real losing strategy if the markets are very bullish over a longer time. Nobody knows this before. But my main focus is to build a long-term passive income source.
Since the date of funding, the portfolio is up 6.21 percent, a clear underperformance compared to the Dow Jones and S&P 500. But you need to know the portfolio is not fully invested. As of now I still have USD 42,628.55 in cash for further stock holding buys. I plan to invest this money within the current year in order to boost the dividend income over a level of USD 3,000 bucks per year.
The portfolio holdings are up 9.36 percent since the date of funding, October 04, 2012. The only way to beat the market in the short-term is to hope for a longer rain period at the market. My big cash position will help me to avoid an underperformance.
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| Portfolio Performance (Click to enlarge) |
Here is the income perspective:
| Sym | Name | P/E Ratio | Dividend Yield | | Buy | # Shrs | Income | Value |
| TRI | 16.05 | 3.82 | | 28.90 | 50 | $64.50 | $1,698.50 | |
| LMT | Lockheed Martin C | 13.06 | 3.93 | | 92.72 | 20 | $89.00 | $2,250.60 |
| INTC | Intel Corporation | 11.99 | 3.75 | | 21.27 | 50 | $45.00 | $1,195.00 |
| MCD | McDonald's Corpor | 18.69 | 2.99 | | 87.33 | 15 | $45.15 | $1,523.70 |
| WU | Western Union Com | 10.47 | 2.73 | | 11.95 | 100 | $47.50 | $1,747.00 |
| PM | Philip Morris Int | 17.37 | 3.81 | | 85.42 | 20 | $68.78 | $1,794.00 |
| JNJ | Johnson & Johnson | 24.35 | 2.78 | | 69.19 | 20 | $49.80 | $1,799.80 |
| MO | Altria Group Inc | 17.06 | 4.77 | | 33.48 | 40 | $70.40 | $1,476.80 |
| SYY | Sysco Corporation | 20.61 | 3.13 | | 31.65 | 40 | $44.40 | $1,424.00 |
| DRI | Darden Restaurant | 16.12 | 4.06 | | 46.66 | 30 | $61.50 | $1,512.90 |
| CA | CA Inc. | 14.38 | 3.36 | | 21.86 | 50 | $50.00 | $1,496.00 |
| PG | Procter & Gamble | 18.1 | 2.83 | | 68.72 | 25 | $57.20 | $2,038.75 |
| KRFT | Kraft Foods Group | 21.06 | 3.53 | | 44.41 | 40 | $80.00 | $2,267.60 |
| MAT | Mattel Inc. | 20.3 | 2.87 | | 36.45 | 40 | $53.60 | $1,883.20 |
| PEP | Pepsico Inc. Com | 21.66 | 2.58 | | 70.88 | 20 | $43.60 | $1,686.40 |
| KMB | Kimberly-Clark Co | 21.68 | 3.11 | | 86.82 | 15 | $46.50 | $1,498.20 |
| COP | ConocoPhillips Co | 10.44 | 4.1 | | 61.06 | 20 | $52.80 | $1,296.80 |
| GIS | General Mills In | 18.29 | 2.68 | | 42.13 | 30 | $41.10 | $1,532.70 |
| UL | Unilever PLC Comm | 21.32 | 3.02 | | 39.65 | 35 | $44.91 | $1,482.60 |
| NSRGY | NESTLE SA REG SHR | 19.08 | 3.21 | | 68.69 | 30 | $65.31 | $2,020.50 |
| GE | General Electric | 17.73 | 3.09 | | 23.39 | 65 | $48.10 | $1,544.40 |
| ADP | Automatic Data Pr | 24.44 | 2.37 | | 61.65 | 25 | $42.50 | $1,835.25 |
| K | Kellogg Company C | 26.14 | 2.65 | | 61.52 | 25 | $44.00 | $1,662.50 |
| KO | Coca-Cola Company | 21.47 | 2.61 | | 38.83 | 40 | $42.80 | $1,641.20 |
| RTN | Raytheon Company | 12.17 | 3.03 | | 57.04 | 20 | $42.00 | $1,389.40 |
| RCI | Rogers Communicat | 11.69 | 4.15 | | 51.06 | 50 | $83.30 | $2,013.50 |
| GPC | Genuine Parts Com | 20.48 | 2.43 | | 77.06 | 20 | $41.28 | $1,700.60 |
| TSCDY | TESCO PLC SPONS A | 214.8 | 4.27 | | 17.98 | 110 | $75.68 | $1,767.70 |
| APD | Air Products and | 17.38 | 2.78 | | 85.71 | 15 | $40.50 | $1,449.75 |
| GSK | GlaxoSmithKline P | 19.34 | 4.43 | | 52.16 | 30 | $70.38 | $1,588.80 |
| WMT | Wal-Mart Stores | 15.3 | 2.24 | | 79.25 | 20 | $34.72 | $1,552.60 |
| BTI | British American | 16.85 | 3.88 | | 114.6 | 23 | $95.22 | $2,429.03 |
| CHL | China Mobile Limi | 10.45 | 4.15 | | 55.32 | 25 | $54.95 | $1,307.50 |
| MMM | 3M Company Common | 18.06 | 2.14 | | 110.27 | 15 | $36.75 | $1,727.10 |
| TUP | Tupperware Brands | 23.45 | 2.42 | | 80.98 | 15 | $29.40 | $1,201.20 |
| IBM | International Bus | 13.3 | 1.82 | | 206.35 | 8 | $28.00 | $1,536.56 |
| HAS | Hasbro Inc. | 18.75 | 3.13 | | 44.09 | 30 | $44.40 | $1,429.20 |
| T | AT&T Inc. | 27.74 | 4.99 | | 34.47 | 30 | $53.70 | $1,074.30 |
| WAG | Walgreen Co. Comm | 21.3 | 2.26 | | 44.25 | 30 | $33.00 | $1,462.80 |
| | | | | | | | | |
| | | | | | | | $2,061.73 | $63,938.44 |
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| | | | | | | | Average Yield | 3.22% |
| | | | | | | | | |
| | | | | | | | Yield On Cost | 3.51% |
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