Microsoft announced recently to raise their future dividends by 22 percent and buy back $40 billion in own shares. This should drive trading volume into the stock. The expected dividend yield is 3.31 percent.
I believe that the microsoft stock has still potential to grow dividends in the future. Despite the weakness with the implementation of new technologies, Microsoft is still a growth stock. Sales more than doubled within the past decade and earnings increased by a factor of 2.5x. That's pretty good for the company with $77 billion cash and $12.6 billion long-term debt.
However, I put 40 shares at $33.88 into the Dividend Yield Passive Income Portfolio. The total purchase amount resulted in $1,360 which should bring additional $45 in yearly dividends.
However, I put 40 shares at $33.88 into the Dividend Yield Passive Income Portfolio. The total purchase amount resulted in $1,360 which should bring additional $45 in yearly dividends.
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| Latest Portfolio Transactions (Click to enlarge) |
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| Portfolio Overview I (Click to enlarge) |
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| Portfolio Overview I (Click to enlarge) |
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For readers who are 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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Over the full year, the expected dividend income amounts to $2,485. With around $27,400 in deposited cash, it’s still possible to reach the $3,000 by the end of this year.
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| Portfolio Performance (Click to enlarge) |
The full portfolio holdings are up 6.23 percent in average. Due to the high cash amount and slow buying process in a gaining market, the complete portfolio performance is only 5.85 percent.
Here is the income perspective of the portfolio
Sym | Name | P/E Ratio | Dividend Yield | Buy | # Shrs | Income | Value |
TRI | 26.32 | 3.75 | 28.90 | 50 | $64.75 | $1,725.50 | |
LMT | Lockheed Martin C | 13.78 | 3.75 | 92.72 | 20 | $92.00 | $2,450.00 |
INTC | Intel Corporation | 12.21 | 3.98 | 21.27 | 50 | $45.00 | $1,140.50 |
MCD | McDonald's Corpor | 17.33 | 3.25 | 87.33 | 15 | $46.20 | $1,420.50 |
WU | Western Union Com | 11.77 | 2.68 | 11.95 | 100 | $50.00 | $1,878.00 |
PM | Philip Morris Int | 17 | 4.03 | 85.42 | 20 | $70.58 | $1,740.80 |
JNJ | Johnson & Johnson | 19.22 | 2.93 | 69.19 | 20 | $50.80 | $1,746.20 |
MO | Altria Group Inc | 15.86 | 5.19 | 33.48 | 40 | $72.00 | $1,386.00 |
SYY | Sysco Corporation | 18.9 | 3.55 | 31.65 | 40 | $44.80 | $1,268.80 |
DRI | Darden Restaurant | 16.32 | 3.37 | 46.66 | 30 | $46.50 | $1,401.60 |
CA | CA Inc. | 12.77 | 3.42 | 21.86 | 50 | $50.00 | $1,478.50 |
PG | Procter & Gamble | 19.65 | 3.07 | 68.72 | 25 | $58.20 | $1,900.50 |
KRFT | Kraft Foods Group | 17.17 | 3.76 | 44.41 | 40 | $80.00 | $2,128.80 |
MAT | Mattel Inc. | 18.93 | 3.3 | 36.45 | 40 | $55.60 | $1,702.00 |
PEP | Pepsico Inc. Com | 18.71 | 2.78 | 70.88 | 20 | $44.20 | $1,592.40 |
KMB | Kimberly-Clark Co | 20.08 | 3.36 | 86.82 | 15 | $47.55 | $1,413.90 |
COP | ConocoPhillips Co | 11.7 | 3.81 | 61.06 | 20 | $52.80 | $1,419.40 |
GIS | General Mills In | 17.85 | 2.18 | 42.13 | 30 | $31.20 | $1,438.50 |
UL | Unilever PLC Comm | 18.06 | 3.5 | 39.65 | 35 | $47.01 | $1,334.55 |
NSRGY | NESTLE SA REG SHR | 19.1 | 3.15 | 68.69 | 30 | $65.31 | $2,058.00 |
GE | General Electric | 17.84 | 3.15 | 23.39 | 65 | $49.40 | $1,563.25 |
ADP | Automatic Data Pr | 24.64 | 2.45 | 61.65 | 25 | $43.50 | $1,788.00 |
K | Kellogg Company C | 22.56 | 3.02 | 61.52 | 25 | $44.50 | $1,484.00 |
KO | Coca-Cola Company | 19.57 | 2.95 | 38.83 | 40 | $43.80 | $1,488.00 |
RTN | Raytheon Company | 12.94 | 2.87 | 57.04 | 20 | $43.00 | $1,485.00 |
RCI | Rogers Communicat | 11.39 | 3.97 | 46.5 | 50 | $84.00 | $2,150.00 |
GPC | Genuine Parts Com | 17.87 | 2.65 | 77.06 | 20 | $42.12 | $1,613.00 |
TSCDY | TESCO PLC SPONS A | N/A | 3.87 | 17.08 | 110 | $75.68 | $1,931.60 |
APD | Air Products and | 22.5 | 2.63 | 85.71 | 15 | $41.55 | $1,594.65 |
GSK | GlaxoSmithKline P | 19.35 | 4.66 | 52.16 | 30 | $71.13 | $1,503.30 |
WMT | Wal-Mart Stores | 14.24 | 2.47 | 79.25 | 20 | $36.16 | $1,456.00 |
BTI | British American | 15.78 | 4.05 | 111.13 | 23 | $96.14 | $2,363.71 |
CHL | China Mobile Limi | 10.81 | 4.06 | 55.32 | 25 | $55.95 | $1,373.75 |
MMM | 3M Company Common | 18.56 | 2.1 | 110.27 | 15 | $37.43 | $1,791.00 |
TUP | Tupperware Brands | 18.61 | 2.56 | 80.98 | 15 | $33.30 | $1,313.40 |
IBM | International Bus | 13.05 | 1.96 | 197.09 | 16 | $57.60 | $2,945.60 |
HAS | Hasbro Inc. | 18.99 | 3.24 | 44.09 | 30 | $45.60 | $1,422.90 |
T | AT&T Inc. | 25.76 | 4.01 | 34.47 | 30 | $40.50 | $1,012.50 |
WAG | Walgreen Co. Comm | 21.86 | 2.04 | 44.25 | 30 | $34.20 | $1,673.70 |
AFL | AFLAC Incorporate | 8.74 | 2.23 | 59.39 | 20 | $28.00 | $1,274.60 |
TGT | Target Corporatio | 15.29 | 2.38 | 68.69 | 32 | $48.32 | $2,029.12 |
CSCO | Cisco Systems In | 12.37 | 2.83 | 25.12 | 90 | $58.50 | $2,071.80 |
DE | Deere & Company C | 9.42 | 2.42 | 84.11 | 15 | $29.85 | $1,238.25 |
RGR | Sturm Ruger & Co | 13.77 | 2.96 | 51.65 | 20 | $38.52 | $1,301.40 |
LO | Lorillard Inc Co | 14.17 | 4.77 | 42.3 | 30 | $65.00 | $1,347.90 |
UNP | Union Pacific Cor | 17.69 | 1.84 | 154.75 | 8 | $22.88 | $1,231.20 |
IDA | IDACORP Inc. Com | 12.83 | 3.17 | 47.94 | 20 | $30.40 | $962.80 |
BAX | Baxter Internatio | 16.08 | 2.92 | 66.38 | 20 | $37.60 | $1,300.20 |
MSFT | Microsoft Corpora | 13.12 | 2.72 | 33.88 | 40 | $36.80 | $1,355.20 |
$2,485.92 | $78,690.28 | ||||||
Average Yield | 3.16% | ||||||
Yield On Cost | 3.37% |
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