Tuesday, December 17, 2013

Cisco Systems (CSCO): Position Increase By 44 Percent

I’ve increased my current stake in Cisco Systems last Friday by 44 percent: I purchased 40 additional shares at $21.28 or $856 total investment cost.

Cisco yields at 3.2 percent but has only a dividend payout ratio of 33.5 percent. The company generates over $10 billion free cash flow per year and announced recently to boost its current share buybackprogramm by $15 billion.

My stake is down 15.31 percent on average and marked the highest unrealized single trading loss within the 54 position strong portfolio. 

Due to the 44 percent position increase, the current trading loss shrinks to 11.27 percent but the position size and therefore the trading risk also rises by a small amount. The overall picture looks still good with a 2.5 percent Cisco portfolio exposure. It’s also the second biggest position behind IBM.

Cisco shares should now contribute around 66 bucks per year to the total dividend income of the portfolio. The full-year estimated dividend income rises to $2,826.

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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Stock holdings of the Passive Income Portfolio are up 10.21 percent on average. Due to the high cash values over the recent year, the full portfolio performance amounts to 10.09. 

The full portfolio performance is not as good as the values from major indices like the Dow Jones or S&P 500. Those performed twice as good as my portfolio. But my strategy is long-term and income orientated. I like to create an income vehicle that doubles its income each 10 years from alone.

Latest 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
33.18
3.54
28.90
50
$65.00
$1,845.50
LMT
Lockheed Martin C
14.58
3.5
92.72
20
$95.60
$2,763.80
INTC
Intel Corporation
13.12
3.71
21.27
50
$45.00
$1,241.00
MCD
McDonald's Corpor
17.23
3.27
87.33
25
$78.00
$2,420.00
WU
Western Union Com
10.89
3.04
11.95
100
$50.00
$1,677.00
PM
Philip Morris Int
16.23
4.13
89.76
30
$105.87
$2,574.90
JNJ
Johnson & Johnson
20.73
2.79
69.19
20
$51.80
$1,888.80
MO
Altria Group Inc
14.42
4.87
33.48
40
$72.00
$1,498.40
SYY
Sysco Corporation
20.22
3.34
31.65
40
$44.80
$1,372.40
DRI
Darden Restaurant
18.49
4.03
46.66
30
$63.00
$1,574.40
CA
CA Inc.
13.87
3.08
21.86
50
$50.00
$1,642.50
PG
Procter & Gamble
21.01
2.86
68.72
25
$59.20
$2,113.00
KRFT
Kraft Foods Group
17.01
3.85
44.41
40
$80.00
$2,142.00
MAT
Mattel Inc.
19.16
3.14
36.45
40
$57.60
$1,850.40
PEP
Pepsico Inc. Com
19.23
2.04
70.88
20
$33.46
$1,663.00
KMB
Kimberly-Clark Co
21.61
2.34
86.82
15
$36.45
$1,583.70
COP
ConocoPhillips Co
10.84
3.81
61.06
20
$52.80
$1,415.40
GIS
General Mills In
18.83
2.83
42.13
30
$42.60
$1,545.00
UL
Unilever PLC Comm
18.78
3.5
39.65
35
$48.83
$1,423.10
NSRGY
NESTLE SA REG SHR
19.91
3.02
68.69
30
$65.31
$2,197.20
GE
General Electric
19.89
2.87
23.39
65
$49.40
$1,751.10
ADP
Automatic Data Pr
26.71
2.22
61.65
25
$43.50
$1,991.50
K
Kellogg Company C
23.17
2.97
61.52
25
$45.00
$1,541.00
KO
Coca-Cola Company
20.65
2.81
38.83
40
$44.80
$1,618.40
RTN
Raytheon Company
14.81
2.5
57.04
20
$43.00
$1,733.60
RCI
Rogers Communicat
11.97
3.8
46.5
50
$84.00
$2,245.00
GPC
Genuine Parts Com
18.01
2.01
77.06
20
$32.22
$1,634.40
TSCDY
TESCO PLC SPONS A
N/A
4.19
17.08
110
$75.79
$1,808.40
APD
Air Products and
22.74
2.6
85.71
15
$41.55
$1,642.65
GSK
GlaxoSmithKline P
20.59
4.61
52.16
30
$72.24
$1,579.50
WMT
Wal-Mart Stores
15.27
1.77
79.25
20
$28.20
$1,598.80
BTI
British American
15.96
4
111.13
23
$96.14
$2,413.39
CHL
China Mobile Limi
10.73
4.09
55.32
40
$89.52
$2,200.80
MMM
3M Company Common
19.49
2
110.27
15
$38.10
$1,929.15
TUP
Tupperware Brands
19.12
2.43
80.98
15
$33.30
$1,399.05
IBM
International Bus
12.19
2.1
193.17
20
$74.00
$3,553.40
HAS
Hasbro Inc.
24.01
2.98
44.09
30
$46.80
$1,552.80
T
AT&T Inc.
25.07
5.26
34.47
30
$54.00
$1,035.90
WAG
Walgreen Co. Comm
21.92
2.1
44.25
30
$35.40
$1,701.30
AFL
AFLAC Incorporate
10.03
2.16
59.39
20
$28.40
$1,332.80
TGT
Target Corporatio
16.76
2.52
68.69
32
$50.56
$2,028.16
CSCO
Cisco Systems In
11.37
2.44
23.98
130
$66.30
$2,766.40
DE
Deere & Company C
9.34
2.35
84.11
15
$29.85
$1,279.80
RGR
Sturm Ruger & Co
13.77
2.92
51.65
20
$42.48
$1,435.40
LO
Lorillard Inc Co
15.88
4.35
42.3
30
$66.00
$1,524.00
UNP
Union Pacific Cor
17.9
1.82
154.75
8
$23.68
$1,314.72
IDA
IDACORP Inc. Com
15.59
3.02
47.94
20
$31.40
$1,058.00
BAX
Baxter Internatio
16.89
2.14
66.38
20
$28.60
$1,347.80
MSFT
Microsoft Corpora
14.23
2.55
33.88
40
$38.80
$1,534.40
ACN
Accenture plc. Cl
15.36
2.3
77.71
20
$34.80
$1,510.60
BCE
BCE Inc. Common
14.31
3.95
44.26
25
$42.98
$1,092.50
VZ
Verizon Communica
63.68
4.24
50.31
30
$62.25
$1,484.40
CVX
Chevron Corporati
9.9
3.22
124.03
10
$39.00
$1,222.90
ORCL
Oracle Corporatio
14.98
1.21
35.2
40
$16.80
$1,419.20
$2,826.17
$93,712.72
Average Yield
3.02%
Yield On Cost
3.33%

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