On the last trading day of the week, I decided to buy additional shares of the cigarettes maker Philip Morris. The current position is up 4.77 percent but I believe it’s not too expensive with a forward P/E of 15.07. The current yield is at 4.19 percent, a ratio above the market average.
I purchased 10 shares and increased the current stake by 50 percent to 30 shares. The acquisition price was 89.76 and resulted in around $900 investment costs.
I know it’s not the best way to buy additional shares at higher prices but over the past year, I also received around $70 in dividends from PM and there are no real alternatives with a cheap valuation that offers growth from abroad. The only question is if it makes sense to buy stocks only to reach this aim. I believe that it also makes sense to keep a decent amount of cash in order to be flexible when real bargains are available.
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| Dividend Yield Portfolio I (Click to enlarge) |
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| Dividend Yield Portfolio II (Click to enlarge) |
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| Latest Portfolio Transactions (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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As of now, the portfolio should generate around $2,670 in dividends over the full year. With $22,800 in deposited cash, it's still possible to hit the $3,000 mark by the end of this year.
Since the date of funding, the portfolio holdings are up 10.53 percent. Because of the high cash amount during the past year, the full performance is only 9.67 percent, a clear underperformance compared to the major indices like Dow Jones or S&P 500.
What I notice is that the Passive Income Portfolio gets stronger within the recent month and the power of dividends comes slowly. I hope that the portfolio will beat the market within the next years.
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| Dividend Yield 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 | 28.66 | 3.45 | 28.90 | 50 | $64.75 | $1,905.00 | |
LMT | Lockheed Martin C | 14.23 | 3.45 | 92.72 | 20 | $92.00 | $2,691.00 |
INTC | Intel Corporation | 13.23 | 3.68 | 21.27 | 50 | $45.00 | $1,216.25 |
MCD | McDonald's Corpor | 17.42 | 3.19 | 87.33 | 25 | $77.00 | $2,431.00 |
WU | Western Union Com | 11.27 | 2.94 | 11.95 | 100 | $50.00 | $1,748.00 |
PM | Philip Morris Int | 16.92 | 3.96 | 89.76 | 30 | $105.87 | $2,692.80 |
JNJ | Johnson & Johnson | 20.65 | 2.74 | 69.19 | 20 | $50.80 | $1,867.40 |
MO | Altria Group Inc | 14.53 | 4.83 | 33.48 | 40 | $72.00 | $1,493.20 |
SYY | Sysco Corporation | 19.37 | 3.46 | 31.65 | 40 | $44.80 | $1,302.40 |
DRI | Darden Restaurant | 18.31 | 4.08 | 46.66 | 30 | $63.00 | $1,544.40 |
CA | CA Inc. | 13.57 | 3.15 | 21.86 | 50 | $50.00 | $1,586.25 |
PG | Procter & Gamble | 20.52 | 2.93 | 68.72 | 25 | $59.20 | $2,028.75 |
KRFT | Kraft Foods Group | 17.8 | 3.72 | 44.41 | 40 | $80.00 | $2,185.12 |
MAT | Mattel Inc. | 18.58 | 3.13 | 36.45 | 40 | $55.60 | $1,792.40 |
PEP | Pepsico Inc. Com | 19.74 | 2.63 | 70.88 | 20 | $44.20 | $1,691.20 |
KMB | Kimberly-Clark Co | 22.46 | 2.94 | 86.82 | 15 | $47.55 | $1,620.15 |
COP | ConocoPhillips Co | 12.23 | 3.68 | 61.06 | 20 | $52.80 | $1,461.80 |
GIS | General Mills In | 18.89 | 2.82 | 42.13 | 30 | $42.60 | $1,509.60 |
UL | Unilever PLC Comm | 19.12 | 3.31 | 39.65 | 35 | $47.01 | $1,404.90 |
NSRGY | NESTLE SA REG SHR | 20 | 3.01 | 68.69 | 30 | $65.31 | $2,156.70 |
GE | General Electric | 19.65 | 2.91 | 23.39 | 65 | $49.40 | $1,725.10 |
ADP | Automatic Data Pr | 26 | 2.32 | 61.65 | 25 | $43.50 | $1,882.75 |
K | Kellogg Company C | 24.23 | 2.81 | 61.52 | 25 | $44.50 | $1,557.25 |
KO | Coca-Cola Company | 20.51 | 2.77 | 38.83 | 40 | $43.80 | $1,584.40 |
RTN | Raytheon Company | 14.18 | 2.61 | 57.04 | 20 | $43.00 | $1,675.00 |
RCI | Rogers Communicat | 12.3 | 3.7 | 46.5 | 50 | $84.00 | $2,269.00 |
GPC | Genuine Parts Com | 17.67 | 2.67 | 77.06 | 20 | $42.12 | $1,579.80 |
TSCDY | TESCO PLC SPONS A | N/A | 3.89 | 17.08 | 110 | $75.79 | $1,927.20 |
APD | Air Products and | 23.27 | 2.54 | 85.71 | 15 | $41.55 | $1,620.00 |
GSK | GlaxoSmithKline P | 20.75 | 4.51 | 52.16 | 30 | $71.13 | $1,595.70 |
WMT | Wal-Mart Stores | 14.94 | 2.36 | 79.25 | 20 | $36.16 | $1,541.40 |
BTI | British American | 16.88 | 3.78 | 111.13 | 23 | $96.14 | $2,529.54 |
CHL | China Mobile Limi | 10.19 | 4.3 | 55.32 | 40 | $89.52 | $2,086.40 |
MMM | 3M Company Common | 19.34 | 1.98 | 110.27 | 15 | $37.43 | $1,888.50 |
TUP | Tupperware Brands | 18.75 | 2.48 | 80.98 | 15 | $33.30 | $1,364.10 |
IBM | International Bus | 12.41 | 2.01 | 193.17 | 20 | $72.00 | $3,584.60 |
HAS | Hasbro Inc. | 19.27 | 3.02 | 44.09 | 30 | $46.80 | $1,555.20 |
T | AT&T Inc. | 26.64 | 4.97 | 34.47 | 30 | $54.00 | $1,087.20 |
WAG | Walgreen Co. Comm | 23.14 | 1.92 | 44.25 | 30 | $34.20 | $1,815.60 |
AFL | AFLAC Incorporate | 9.03 | 2.15 | 59.39 | 20 | $28.00 | $1,302.00 |
TGT | Target Corporatio | 15.62 | 2.33 | 68.69 | 32 | $48.32 | $2,067.84 |
CSCO | Cisco Systems In | 12.13 | 2.88 | 25.12 | 90 | $58.50 | $2,030.85 |
DE | Deere & Company C | 9.39 | 2.43 | 84.11 | 15 | $29.85 | $1,224.60 |
RGR | Sturm Ruger & Co | 13.85 | 2.94 | 51.65 | 20 | $38.52 | $1,362.60 |
LO | Lorillard Inc Co | 16.03 | 4.25 | 42.3 | 30 | $65.00 | $1,541.70 |
UNP | Union Pacific Cor | 16.69 | 1.89 | 154.75 | 8 | $22.88 | $1,222.16 |
IDA | IDACORP Inc. Com | 13.8 | 2.21 | 47.94 | 20 | $22.80 | $1,032.40 |
BAX | Baxter Internatio | 16.68 | 2.85 | 66.38 | 20 | $37.60 | $1,315.00 |
MSFT | Microsoft Corpora | 13.26 | 2.6 | 33.88 | 40 | $36.80 | $1,421.00 |
ACN | Accenture plc. Cl | 14.9 | 2.37 | 77.71 | 20 | $34.80 | $1,460.00 |
$2,670.89 | $87,177.21 | ||||||
Average Yield | 3.06% | ||||||
Yield On Cost | 3.39% |
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