Sunday, August 11, 2013

I Doubled The IBM Stock Position In My Portfolio

On the last trading day of the week, I decided to increase my current position in IBM by doubling the number of shares to 16. IBM is now the biggest position in my Dividend Yield Passive Income Portfolio measured by market value and on cost basis. The total position is still 5 percent down after the repurchase but I am still confident about the future of the tech giant.

The current P/E of IBM amounts to 13.36 and should fall to 10.22 if earnings grow as expected. Over the next five years, analysts predict earnings growth of 10.59 percent yearly. I believe it’s a good price for growth and IBM has as well diversified technology product portfolio.





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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 estimated dividend income is now estimated at USD 2,129 bucks per year. By the end of this year I want to boost the income to a total level of at least USD 3,000. With remaining USD 37,252 in cash, it’s a solid basis in my view. All I need to do is to keep the current yield on cost above the 3 percent level.




Here is the income perspective of the portfolio

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
26.3
3.72

28.90
50
$64.25
$1,729.50
LMT
Lockheed Martin C
13.98
3.45

92.72
20
$86.00
$2,480.40
INTC
Intel Corporation
12.13
4.01

21.27
50
$45.00
$1,125.50
MCD
McDonald's Corpor
17.95
3

87.33
15
$44.10
$1,464.30
WU
Western Union Com
11.59
2.45

11.95
100
$45.00
$1,846.00
PM
Philip Morris Int
17.36
3.76

85.42
20
$67.18
$1,774.00
JNJ
Johnson & Johnson
20.72
2.61

69.19
20
$48.80
$1,847.20
MO
Altria Group Inc
16.26
4.86

33.48
40
$69.20
$1,414.80
SYY
Sysco Corporation
20.27
3.16

31.65
40
$44.00
$1,400.40
DRI
Darden Restaurant
15.8
4.04

46.66
30
$60.00
$1,486.80
CA
CA Inc.
13.49
2.43

21.86
50
$37.50
$1,549.00
PG
Procter & Gamble
21.29
2.74

68.72
25
$56.20
$2,041.00
KRFT
Kraft Foods Group
18.4
3.55

44.41
40
$80.00
$2,250.40
MAT
Mattel Inc.
19.27
3.12

36.45
40
$53.60
$1,715.20
PEP
Pepsico Inc. Com
19.95
2.54

70.88
20
$43.00
$1,686.80
KMB
Kimberly-Clark Co
20.96
3.07

86.82
15
$45.45
$1,477.95
COP
ConocoPhillips Co
11.19
29.31

61.06
20
$52.80
$1,336.60
GIS
General Mills In
18.88
2.51

42.13
30
$39.60
$1,572.60
UL
Unilever PLC Comm
18.91
3.12

39.65
35
$43.89
$1,410.85
NSRGY
NESTLE SA REG SHR
19.4
3.15

68.69
30
$65.31
$2,033.40
GE
General Electric
18.01
2.96

23.39
65
$46.80
$1,576.25
ADP
Automatic Data Pr
25.03
2.35

61.65
25
$42.50
$1,811.50
K
Kellogg Company C
25.16
2.67

61.52
25
$43.75
$1,642.00
KO
Coca-Cola Company
21.17
2.6

38.83
40
$41.80
$1,606.40
RTN
Raytheon Company
13.27
2.67

57.04
20
$41.00
$1,539.60
RCI
Rogers Communicat
10.61
4.12

46.5
50
$81.15
$1,979.00
GPC
Genuine Parts Com
18.56
2.45

77.06
20
$40.44
$1,651.60
TSCDY
TESCO PLC SPONS A
230.4
3.98

17.08
110
$75.68
$1,928.30
APD
Air Products and
22.76
2.47

85.71
15
$39.45
$1,600.50
GSK
GlaxoSmithKline P
19.66
4.54

52.16
30
$70.35
$1,545.30
WMT
Wal-Mart Stores
15.22
2.15

79.25
20
$33.28
$1,538.00
BTI
British American
16.29
3.84

111.13
23
$95.22
$2,475.03
CHL
China Mobile Limi
10.62
4.05

55.32
25
$54.45
$1,335.50
MMM
3M Company Common
18.58
2.03

110.27
15
$36.08
$1,774.65
TUP
Tupperware Brands
18.42
1.98

80.98
15
$25.50
$1,294.80
IBM
International Bus
13.35
1.81

197.09
16
$54.40
$3,005.12
HAS
Hasbro Inc.
18.73
3.28

44.09
30
$45.60
$1,378.80
T
AT&T Inc.
27.02
5.04

34.47
30
$53.40
$1,044.00
WAG
Walgreen Co. Comm
21.82
2.1

44.25
30
$31.50
$1,488.30
AFL
AFLAC Incorporate
8.6
2.2

59.39
20
$27.20
$1,230.40
TGT
Target Corporatio
16.73
1.94

71.46
20
$27.60
$1,414.40
CSCO
Cisco Systems In
14.59
2.36

26.19
50
$31.00
$1,302.65
















$2,129.03
$69,804.80
















Average Yield
3.05%
















Yield On Cost
3.34%

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