I’ve only two trades to hit the $3,000 expected dividend income by the end of this year. On the last trading day of the week, I decided to buy a new stake from the utility sector. It was the electric utility stock Xcel Energy. I was impressed about the solid earnings and dividend growth in the past. For sure the debt ratios are not impressive but for a utility company almost solid.
I purchased 50 shares at $28.21 which resulted in $1,410.50 total investment cost. The stake should increase the current portfolio income by $55 bucks per year to a total estimated amount of $2,934.19. That’s very close to my minimum target of $3,000.
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| Earnings and Dividends of Xcel Energy |
XEL has a low forward P/E of 14.17 and yields at 3.97 percent. That’s a good number in my view because earnings are expected to grow by 6.70 percent for the next five years.
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| Latest Portfolio Transactions (Click to enlarge) |
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| Latest Portfolio I (Click to enlarge) |
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| 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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Stockholdings of the Dividend Yield Passive Income Portfolio are up 9.99 on average. Due to the high cash amounts over the recent year, the total performance is only at 10.21 percent. The major indices increased by 20 to 35 percent.
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| Latest Portfolio Performance (Click to enlarge) |
For sure, the portfolio did not beat the market, but was not really invested. The major goal is also not to make quick money. The aim is to create a stable dividend income that doubles each ten years or less.
With remaining cash of $14,677, it’s still possible to boost the current income by $500 bucks but I plan to hold a significant amount of cash in order to be liquid when the markets are losing ground. Only in falling markets raises the possibility to get cheap long-term bets.
Here is the income perspective of the portfolio
Sym | Name | P/E Ratio | Dividend Yield | Buy | # Shrs | Income | Value |
TRI | 33.69 | 3.48 | 28.90 | 50 | $65.00 | $1,884.50 | |
LMT | Lockheed Martin C | 15.26 | 3.34 | 92.72 | 20 | $95.60 | $2,884.20 |
INTC | Intel Corporation | 13.6 | 3.58 | 21.27 | 50 | $45.00 | $1,252.75 |
MCD | McDonald's Corpor | 17.17 | 3.28 | 87.33 | 25 | $78.00 | $2,412.75 |
WU | Western Union Com | 11.18 | 2.96 | 11.95 | 100 | $50.00 | $1,701.00 |
PM | Philip Morris Int | 16.23 | 4.08 | 89.76 | 30 | $104.70 | $2,565.60 |
JNJ | Johnson & Johnson | 20.51 | 2.82 | 69.19 | 20 | $51.80 | $1,841.80 |
MO | Altria Group Inc | 14.91 | 3.56 | 33.48 | 40 | $54.40 | $1,542.80 |
SYY | Sysco Corporation | 21.84 | 3.09 | 31.65 | 40 | $44.80 | $1,458.00 |
DRI | Darden Restaurant | 18.12 | 4.12 | 46.66 | 30 | $63.00 | $1,532.70 |
CA | CA Inc. | 14.05 | 3.04 | 21.86 | 50 | $50.00 | $1,646.50 |
PG | Procter & Gamble | 20.81 | 2.89 | 68.72 | 25 | $59.20 | $2,046.00 |
KRFT | Kraft Foods Group | 17.18 | 3.81 | 44.41 | 40 | $80.00 | $2,160.00 |
MAT | Mattel Inc. | 18.86 | 3.2 | 36.45 | 40 | $57.60 | $1,820.80 |
PEP | Pepsico Inc. Com | 19.17 | 2.74 | 70.88 | 20 | $44.82 | $1,636.20 |
KMB | Kimberly-Clark Co | 21.71 | 3.1 | 86.82 | 15 | $48.60 | $1,577.70 |
COP | ConocoPhillips Co | 10.57 | 3.91 | 61.06 | 20 | $52.80 | $1,397.60 |
GIS | General Mills In | 18.49 | 2.88 | 42.13 | 30 | $42.60 | $1,479.00 |
UL | Unilever PLC Comm | 18.66 | 3.52 | 39.65 | 35 | $48.83 | $1,396.85 |
NSRGY | NESTLE SA REG SHR | 19.77 | 3.04 | 68.69 | 30 | $65.31 | $2,171.40 |
GE | General Electric | 20.54 | 2.89 | 23.39 | 65 | $51.35 | $1,778.40 |
ADP | Automatic Data Pr | 27.02 | 2.25 | 61.65 | 25 | $44.63 | $1,999.25 |
K | Kellogg Company C | 23.17 | 2.97 | 61.52 | 25 | $45.00 | $1,513.00 |
KO | Coca-Cola Company | 20.66 | 2.81 | 38.83 | 40 | $44.80 | $1,601.60 |
RTN | Raytheon Company | 15.24 | 2.43 | 57.04 | 20 | $43.00 | $1,767.80 |
RCI | Rogers Communicat | 11.78 | 3.89 | 46.5 | 50 | $84.60 | $2,199.00 |
GPC | Genuine Parts Com | 18.3 | 2.63 | 77.06 | 20 | $42.96 | $1,635.40 |
TSCDY | TESCO PLC SPONS A | N/A | 4.31 | 17.08 | 110 | $75.79 | $1,805.10 |
APD | Air Products and | 23.69 | 2.5 | 85.71 | 15 | $41.55 | $1,669.50 |
GSK | GlaxoSmithKline P | 20.34 | 4.67 | 52.16 | 30 | $72.24 | $1,541.40 |
WMT | Wal-Mart Stores | 14.85 | 2.43 | 79.25 | 20 | $37.60 | $1,548.60 |
BTI | British American | 15.94 | 4.01 | 111.13 | 30 | $125.40 | $3,125.40 |
CHL | China Mobile Limi | 10.16 | 4.32 | 55.32 | 40 | $89.52 | $2,065.20 |
MMM | 3M Company Common | 20.96 | 1.86 | 110.27 | 15 | $38.10 | $2,050.80 |
TUP | Tupperware Brands | 19.84 | 2.61 | 80.98 | 15 | $37.20 | $1,429.35 |
IBM | International Bus | 12.48 | 2.05 | 193.17 | 20 | $74.00 | $3,600.40 |
HAS | Hasbro Inc. | 23.97 | 2.3 | 44.09 | 30 | $36.00 | $1,574.70 |
T | AT&T Inc. | 25.22 | 5.22 | 34.47 | 30 | $54.00 | $1,029.00 |
WAG | Walgreen Co. Comm | 22.24 | 2.07 | 44.25 | 30 | $35.40 | $1,771.20 |
AFL | AFLAC Incorporate | 10.08 | 2.15 | 59.39 | 20 | $28.40 | $1,313.00 |
TGT | Target Corporatio | 16.64 | 2.54 | 68.69 | 32 | $50.56 | $1,999.68 |
CSCO | Cisco Systems In | 11.46 | 2.42 | 23.98 | 130 | $66.30 | $2,746.90 |
DE | Deere & Company C | 9.84 | 2.23 | 84.11 | 15 | $29.85 | $1,351.20 |
RGR | Sturm Ruger & Co | 13.64 | 2.95 | 51.65 | 20 | $42.48 | $1,457.80 |
LO | Lorillard Inc Co | 15.64 | 4.42 | 42.3 | 30 | $66.00 | $1,497.00 |
UNP | Union Pacific Cor | 18.1 | 1.8 | 154.75 | 8 | $23.68 | $1,308.80 |
IDA | IDACORP Inc. Com | 15.86 | 2.97 | 47.94 | 20 | $31.40 | $1,054.20 |
BAX | Baxter Internatio | 16.98 | 2.86 | 66.38 | 20 | $38.40 | $1,367.80 |
MSFT | Microsoft Corpora | 13.57 | 2.68 | 33.88 | 40 | $38.80 | $1,472.00 |
ACN | Accenture plc. Cl | 16.13 | 2.19 | 77.71 | 20 | $34.80 | $1,611.00 |
BCE | BCE Inc. Common | 14.02 | 3.98 | 44.26 | 25 | $42.48 | $1,066.50 |
VZ | Verizon Communica | 63.06 | 4.28 | 50.31 | 30 | $62.25 | $1,442.40 |
CVX | Chevron Corporati | 10.08 | 3.17 | 124.03 | 10 | $39.00 | $1,227.80 |
ORCL | Oracle Corporatio | 15.73 | 0.66 | 35.2 | 40 | $9.60 | $1,454.80 |
XEL | Xcel Energy Inc. | 14.87 | 3.91 | 28.21 | 50 | $55.00 | $1,410.50 |
$2,934.19 | $95,894.63 | ||||||
Average Yield | 3.06% | ||||||
Yield On Cost | 3.37% |
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