Wednesday, March 12, 2014

Sturm Ruger: First Sell-Off In The Dividend Yield Passive Income Portfolio

On February 21, 2014, I closed my position in Sturm, Ruger & Co. The company reduced its dividend in September 2013 from 65 cents to 58. The next dividend should also be lower at 54 cents. It’s not the kind of long-term dividend growth stock I want to hold in my portfolio. The stake was initiated in August 2013 and resulted in a 31,41 percent overall return.

I still believe that Sturm, Ruger & Co. is a well managed company with deep values but it’s too small and more volatile than bigger defense stocks like Lockheed Martin or Raytheon.

For the time being, the portfolio delivered around $2,000 in dividends over the life-time and has now still $13,487.05 in cash values. I’m still confident about the current market situation but want to keep the high cash ratio in order to be prepared when good bargains are available.

The overall return of the portfolio is 9.56 percent and 1.28 percent year-to-date. The value is close to the performance of the Dow Jones since the beginning of the year but less than the values of the S&P 500 and Nasdaq. Those indices also benefited from massive capital gains of social networks like Facebook or innovative stocks like Tesla. Each investor can build it's own thoughts about the current valuation of those stocks.
Dividend Yield Passive Income Portfolio Performance LTD (Click to enlarge)

Dividend Yield Passive Income Portfolio Performance YTD (Click to enlarge)
Despite the position close of Sturm,Ruger & Co., dividend hikes of current portfolio holdings could overcompensate the lost dividend income stream. The expected dividend income is now at $3,017.76.

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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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Here is the income perspective of the portfolio


Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
2865.83
3.79
28.90
50
$65.25
$1,717.00
LMT
Lockheed Martin C
17.67
3.07
92.72
20
$99.20
$3,246.00
INTC
Intel Corporation
13.1
3.63
21.27
50
$45.00
$1,238.00
MCD
McDonald's Corpor
17.13
3.32
87.33
25
$79.00
$2,378.75
WU
Western Union Com
11.62
3.01
11.95
100
$50.00
$1,673.00
PM
Philip Morris Int
15.36
4.43
89.76
30
$107.40
$2,427.30
JNJ
Johnson & Johnson
19
2.89
69.19
20
$52.80
$1,842.40
MO
Altria Group Inc
15.87
5.13
33.48
40
$73.60
$1,450.40
SYY
Sysco Corporation
21.79
3.14
31.65
40
$45.20
$1,440.80
DRI
Darden Restaurant
18.37
4.32
46.66
30
$64.50
$1,531.80
CA
CA Inc.
14.43
2.99
21.86
50
$50.00
$1,675.00
PG
Procter & Gamble
21
3.08
68.72
25
$60.20
$1,966.50
KRFT
Kraft Foods Group
12.23
3.72
44.41
40
$80.00
$2,210.80
MAT
Mattel Inc.
14.41
3.93
36.45
40
$58.40
$1,492.40
PEP
Pepsico Inc. Com
18.3
2.16
70.88
20
$34.08
$1,601.40
KMB
Kimberly-Clark Co
19.69
2.98
86.82
15
$48.60
$1,655.25
COP
ConocoPhillips Co
8.98
4.12
61.06
20
$52.80
$1,330.00
GIS
General Mills In
18.53
2.95
42.13
30
$44.10
$1,500.90
UL
Unilever PLC Comm
19.07
3.5
39.65
35
$50.26
$1,436.05
NSRGY
NESTLE SA REG SHR
22.36
2.9
68.69
30
$65.31
$2,263.20
GE
General Electric
18.74
3.22
23.39
65
$53.30
$1,655.55
ADP
Automatic Data Pr
26.62
2.3
61.65
25
$44.63
$1,944.50
K
Kellogg Company C
12.18
2.26
61.52
25
$34.00
$1,517.25
KO
Coca-Cola Company
20.04
2.94
38.83
40
$44.80
$1,528.00
RTN
Raytheon Company
16.17
1.69
57.04
20
$33.00
$1,958.20
RCI
Rogers Communicat
11.73
4.4
46.5
50
$84.60
$1,933.50
GPC
Genuine Parts Com
19.73
2.48
77.06
20
$43.00
$1,761.80
TSCDY
TESCO PLC SPONS A
N/A
4.13
17.08
110
$75.79
$1,824.90
APD
Air Products and
25.22
1.78
85.71
15
$31.95
$1,819.80
GSK
GlaxoSmithKline P
15.8
4.4
52.16
30
$74.07
$1,678.20
WMT
Wal-Mart Stores
15.23
2.52
79.25
20
$37.60
$1,494.00
BTI
British American
16.41
3.87
111.13
30
$125.40
$3,263.70
CHL
China Mobile Limi
9.39
4.67
55.32
40
$89.56
$1,902.00
MMM
3M Company Common
19.99
2.05
110.27
15
$41.40
$2,020.95
TUP
Tupperware Brands
15.35
3.12
80.98
15
$37.20
$1,179.00
IBM
International Bus
12.4
2.05
193.17
20
$76.00
$3,703.40
HAS
Hasbro Inc.
25.36
2.91
44.09
30
$48.00
$1,654.80
T
AT&T Inc.
9.5
5.62
34.47
30
$54.30
$957.90
WAG
Walgreen Co. Comm
23.93
1.79
44.25
30
$36.60
$2,038.50
AFL
AFLAC Incorporate
9.38
2.27
59.39
20
$28.80
$1,281.60
TGT
Target Corporatio
19.76
2.72
68.69
32
$52.80
$2,001.28
CSCO
Cisco Systems In
14.41
3.1
23.98
130
$88.40
$2,834.00
DE
Deere & Company C
9.16
2.4
84.11
15
$30.60
$1,288.95
LO
Lorillard Inc Co
15.42
4.66
42.3
30
$67.95
$1,471.80
UNP
Union Pacific Cor
18.95
1.78
154.75
8
$25.44
$1,443.04
IDA
IDACORP Inc. Com
15.29
2.91
47.94
20
$32.40
$1,123.80
BAX
Baxter Internatio
18.82
2.79
66.38
20
$38.40
$1,390.00
MSFT
Microsoft Corpora
14.02
2.69
33.88
40
$40.80
$1,532.40
ACN
Accenture plc. Cl
17.75
2.09
77.71
20
$34.80
$1,667.00
BCE
BCE Inc. Common
16.71
3.93
44.26
25
$42.48
$1,090.00
VZ
Verizon Communica
11.88
4.4
50.31
30
$62.70
$1,427.40
CVX
Chevron Corporati
10.43
3.46
124.03
10
$40.00
$1,153.30
ORCL
Oracle Corporatio
16.57
0.92
35.2
40
$14.40
$1,564.40
XEL
Xcel Energy Inc.
15.67
3.71
28.21
50
$55.50
$1,514.50
CHRW
C.H. Robinson Wor
19.76
2.01
57.72
20
$21.00
$1,037.20
XOM
Exxon Mobil Corpo
13
2.63
101.51
20
$50.40
$1,925.40
$3,017.76
$97,658.97
Average Yield
3.09%
Yield On Cost
3.38%

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