Tuesday, November 12, 2013

Philip Morris Position Increase By 50%

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.

Dividend Yield Portfolio I (Click to enlarge)

Dividend Yield Portfolio II (Click to enlarge)

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.

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
Thomson Reuters C
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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