Verizon Communications Stake Submitted To The Dividend Yield Passive Income Portfolio

I’m continuing my strategy to buy higher yielding stocks from the telecom sector: On the latest trading day, I purchased 30 shares of the second biggest telecom carrier in the United States, Verizon. The company yields at 4.21 percent, a value that is smaller than the figure of the bigger rival AT&T which is also part of my portfolio. 

Verizon is a cheap dividend growth stock and has a forward P/E of 14.44.

I believe that telecoms in America are strong cash flow producing stocks and I think that they can deliver good cash quotes for my Dividend Yield Passive Income Portfolio over the long-run.

The total buying amount was around $1,500 bucks at a price of $50.31. For sure, investment costs are very high for telecoms and the ability to hike consumer prices is very limited due to strong regulations from the government. 

But the two biggest companies, Verizon and AT&T, can generate each up to $20 billion in free cash per year. That’s a huge number in a nation with a slow growing population.

Latest Portfolio Transactions (Click to enlarge)

Latest Portfolio I (Click to enlarge)

Latest Portfolio II (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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With the latest dividend stock purchase of Verizon, the expected dividend income rises to $2,766 bucks per year. The current yield on cost is at 3.4 percent while the actual portfolio yield is still over 3 percent at 3.04 percent.

The portfolio generated around $9,600 in capital gains on a $100,000 investment and additional $1,600 bucks were received in dividends.

Latest Portfolio Performance (Click to enlarge)

The power of compounding dividends is a long-term play and should boost the whole portfolio value into new dimensions over the upcoming years. Let us watch how my strategy develops over the time.

As of now, the current portfolio is underperforming the major indices due to the slow purchase process and high cash values over the past year. But nobody could expect that the financial market starting to boom. In an underperforming market, my strategy would have beaten the market. 

But I don’t look at short-term aims and quick returns. My focus is to create a well-diversified asset structure that delivers a solid cash-income that doubles each ten years or so.

Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	34.77	3.36	28.90	50	$64.75	$1,917.50
LMT	Lockheed Martin C	14.76	3.33	92.72	20	$92.00	$2,749.00
INTC	Intel Corporation	13.19	3.69	21.27	50	$45.00	$1,226.00
MCD	McDonald's Corpor	17.61	3.16	87.33	25	$77.00	$2,423.00
WU	Western Union Com	11.56	2.87	11.95	100	$50.00	$1,670.00
PM	Philip Morris Int	17.22	3.89	89.76	30	$105.87	$2,740.80
JNJ	Johnson & Johnson	20.95	2.7	69.19	20	$50.80	$1,887.80
MO	Altria Group Inc	14.71	4.77	33.48	40	$72.00	$1,520.00
SYY	Sysco Corporation	20.1	3.34	31.65	40	$44.80	$1,348.00
DRI	Darden Restaurant	18.71	3.99	46.66	30	$63.00	$1,605.00
CA	CA Inc.	13.96	2.29	21.86	50	$37.50	$1,642.50
PG	Procter & Gamble	21.43	2.81	68.72	25	$59.20	$2,121.00
KRFT	Kraft Foods Group	17.13	3.82	44.41	40	$80.00	$2,122.00
MAT	Mattel Inc.	19.18	3.03	36.45	40	$55.60	$1,847.20
PEP	Pepsico Inc. Com	20.28	2.56	70.88	20	$44.20	$1,720.60
KMB	Kimberly-Clark Co	22.81	2.89	86.82	15	$47.55	$1,638.90
COP	ConocoPhillips Co	11.27	3.66	61.06	20	$52.80	$1,466.00
GIS	General Mills In	19.31	2.76	42.13	30	$42.60	$1,539.30
UL	Unilever PLC Comm	18.77	3.5	39.65	35	$48.83	$1,399.30
NSRGY	NESTLE SA REG SHR	20.19	2.98	68.69	30	$65.31	$2,192.55
GE	General Electric	20.29	2.82	23.39	65	$49.40	$1,768.00
ADP	Automatic Data Pr	26.18	2.26	61.65	25	$43.50	$1,933.25
K	Kellogg Company C	24.21	2.81	61.52	25	$44.50	$1,565.25
KO	Coca-Cola Company	20.84	2.72	38.83	40	$43.80	$1,608.80
RTN	Raytheon Company	14.76	2.51	57.04	20	$43.00	$1,705.60
RCI	Rogers Communicat	12.12	3.76	46.5	50	$84.00	$2,242.00
GPC	Genuine Parts Com	18.53	2.55	77.06	20	$42.12	$1,655.00
TSCDY	TESCO PLC SPONS A	N/A	4	17.08	110	$75.79	$1,894.75
APD	Air Products and	23.21	2.55	85.71	15	$41.55	$1,658.85
GSK	GlaxoSmithKline P	20.56	4.62	52.16	30	$72.24	$1,562.40
WMT	Wal-Mart Stores	15.39	2.29	79.25	20	$36.16	$1,584.40
BTI	British American	16.64	3.84	111.13	23	$96.14	$2,515.51
CHL	China Mobile Limi	10.19	4.3	55.32	40	$89.52	$2,139.20
MMM	3M Company Common	19.94	1.92	110.27	15	$37.43	$1,947.75
TUP	Tupperware Brands	18.95	2.45	80.98	15	$33.30	$1,358.55
IBM	International Bus	12.62	2.03	193.17	20	$74.00	$3,663.80
HAS	Hasbro Inc.	24.18	2.96	44.09	30	$46.80	$1,581.90
T	AT&T Inc.	25.74	5.12	34.47	30	$54.00	$1,062.90
WAG	Walgreen Co. Comm	23.48	1.96	44.25	30	$35.40	$1,808.40
AFL	AFLAC Incorporate	10.3	1.56	59.39	20	$21.00	$1,349.60
TGT	Target Corporatio	16.07	2.26	68.69	32	$48.32	$2,140.48
CSCO	Cisco Systems In	11.49	3.04	25.12	90	$58.50	$1,938.15
DE	Deere & Company C	9.51	2.4	84.11	15	$29.85	$1,242.45
RGR	Sturm Ruger & Co	14.02	2.87	51.65	20	$42.48	$1,485.00
LO	Lorillard Inc Co	16.46	4.14	42.3	30	$65.00	$1,579.50
UNP	Union Pacific Cor	17.45	1.81	154.75	8	$22.88	$1,275.92
IDA	IDACORP Inc. Com	15.25	3.09	47.94	20	$31.40	$1,017.60
BAX	Baxter Internatio	17.12	2.78	66.38	20	$37.60	$1,373.20
MSFT	Microsoft Corpora	14.23	1.81	33.88	40	$27.60	$1,513.64
ACN	Accenture plc. Cl	15.62	2.26	77.71	20	$34.80	$1,560.40
BCE	BCE Inc. Common	14.56	3.88	44.26	25	$42.98	$1,118.75
VZ	Verizon Communica	65.46	4.13	50.31	30	$62.25	$1,509.30
						$2,766.11	$91,136.75
						Average Yield	3.04%
						Yield On Cost	3.40%