Dividend Yield Passive Income Portfolio Welcomes Cisco Systems

I’m a real lover of technology stocks from the old-tech economy. Most of the big players of the first area from the internet boom are worth billions and started to pay dividends recently. They still have huge potential to hike dividends and billions of cash on their balance sheets.

I purchased last Friday 50 shares of the networking and communication devices giant Cisco Systems. My total purchase amount was around USD 1,300 bucks and will produce approximately 33 bucks in dividend income at a 2.6 percent dividend yield. The current P/E of Cisco is acceptable in my view at 14.55 and 12.41 for the next year. Remember there are forecasts of growing earnings per share of 5 percent for the next half decade. With a payout of 30 percent or so, it’s a great opportunity for long-term dividend growth investors. I weighted the stock with 1.21 percent in my Dividend Yield Passive Income Portfolio.

Dividend Yield Passive Income Portfolio (Click to enlarge)

Dividend Yield Passive Income Portfolio (Click to enlarge)

  

Latest Portfolio Transactions (Click to enlarge)

Cisco designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide. It offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, access points, and servers, as well as function as aggregators on local-area networks and wide-area networks; and routers that interconnects public and private IP networks for mobile, data, voice, and video applications.

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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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The full year dividend income of the portfolio is now estimated at USD 2,114.33. I paid around 67k for all these 42 stockholdings combined and paid 225 bucks in total for transaction fee. The yield on cost amounts to 3.33 percent. Due to the capital gains of the stocks, the current portfolio yield is at 3.09 percent.

With USD 38,749.50 deposited cash on bank, it’s still easy to reach a 3k dividend income by the end of the year if I buy each week a stock with a yield on cost of more than 3 percent. The Cisco share does not fulfill this criterion but my average dividend income is still high enough to keep this aims alive.

Stocks from the income vehicle are up 10.25 percent in average since the date of funding. The performance is an underperformance compared to the major indices like Dow Jones or S&P 500. This is reasonable to the slow purchasing process. I buy each week only one stake with 1-2 k. In markets with strong forces of the bulls, the strategy will lose performance.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield		Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	16.42	3.72		28.90	50	$64.25	$1,720.50
LMT	Lockheed Martin C	13.7	3.52		92.72	20	$86.00	$2,475.40
INTC	Intel Corporation	12.53	3.88		21.27	50	$45.00	$1,161.00
MCD	McDonald's Corpor	18.13	2.97		87.33	15	$44.10	$1,488.00
WU	Western Union Com	10.91	2.48		11.95	100	$45.00	$1,831.00
PM	Philip Morris Int	17.43	3.74		85.42	20	$67.18	$1,791.80
JNJ	Johnson & Johnson	20.81	2.6		69.19	20	$48.80	$1,887.80
MO	Altria Group Inc	16.24	4.87		33.48	40	$69.20	$1,427.20
SYY	Sysco Corporation	20.23	3.16		31.65	40	$44.00	$1,399.20
DRI	Darden Restaurant	15.81	4.04		46.66	30	$60.00	$1,496.40
CA	CA Inc.	13.16	3.32		21.86	50	$50.00	$1,519.50
PG	Procter & Gamble	18.29	2.75		68.72	25	$56.20	$2,032.25
KRFT	Kraft Foods Group	21.23	3.48		44.41	40	$80.00	$2,300.00
MAT	Mattel Inc.	19.15	3.14		36.45	40	$53.60	$1,713.60
PEP	Pepsico Inc. Com	19.84	2.55		70.88	20	$43.00	$1,685.80
KMB	Kimberly-Clark Co	21.01	3.07		86.82	15	$45.45	$1,494.15
COP	ConocoPhillips Co	10.73	29.75		61.06	20	$52.80	$1,344.60
GIS	General Mills In	18.9	2.5		42.13	30	$39.60	$1,570.50
UL	Unilever PLC Comm	19.37	3.05		39.65	35	$43.89	$1,448.30
NSRGY	NESTLE SA REG SHR	19.14	3.2		68.69	30	$65.31	$2,088.00
GE	General Electric	18.22	2.92		23.39	65	$46.80	$1,605.50
ADP	Automatic Data Pr	24.44	2.37		61.65	25	$42.50	$1,789.50
K	Kellogg Company C	25.71	2.68		61.52	25	$43.75	$1,630.75
KO	Coca-Cola Company	21.36	2.58		38.83	40	$41.80	$1,608.80
RTN	Raytheon Company	12.73	2.78		57.04	20	$41.00	$1,513.00
RCI	Rogers Communicat	10.83	4.03		51.06	50	$81.15	$1,991.50
GPC	Genuine Parts Com	18.91	2.41		77.06	20	$40.44	$1,691.40
TSCDY	TESCO PLC SPONS A	225.73	4.06		17.98	110	$75.68	$1,881.00
APD	Air Products and	22.89	2.45		85.71	15	$39.45	$1,604.25
GSK	GlaxoSmithKline P	19.7	4.53		52.16	30	$70.35	$1,566.60
WMT	Wal-Mart Stores	15.41	2.13		79.25	20	$33.28	$1,575.00
BTI	British American	17.14	3.81		114.6	23	$95.22	$2,499.87
CHL	China Mobile Limi	10.59	4.06		55.32	25	$54.45	$1,344.25
MMM	3M Company Common	18.53	2.03		110.27	15	$36.08	$1,773.90
TUP	Tupperware Brands	18.52	1.97		80.98	15	$25.50	$1,284.90
IBM	International Bus	13.91	1.74		206.35	8	$27.20	$1,561.28
HAS	Hasbro Inc.	18.99	3.24		44.09	30	$45.60	$1,409.70
T	AT&T Inc.	27.35	4.98		34.47	30	$53.40	$1,073.10
WAG	Walgreen Co. Comm	22.37	2.05		44.25	30	$31.50	$1,529.40
AFL	AFLAC Incorporate	10.04	2.14		59.39	20	$27.20	$1,245.20
TGT	Target Corporatio	16.82	1.93		71.46	20	$27.60	$1,430.00
CSCO	Cisco Systems In	14.38	2.39		26.19	50	$31.00	$1,309.50
							$2,114.33	$68,793.40
							Average Yield	3.07%
							Yield On Cost	3.38%