Past Friday, I purchased shares of the software giant Microsoft. The company has a P/E of 13.08 which should fall to a ratio of 11.32 by next year. Earnings growth of 8.7 percent for the next five years is forecasted by analysts.
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.
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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 |
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| $2,485.92 | $78,690.28 |
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| Average Yield | 3.16% |
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| Yield On Cost | 3.37% |
