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Unilever: A Great Foods and Consumer Stock Added To My Dividend Yield Passive Income Portfolio


Last Friday I bought 35 Unilever (UL) shares for the Dividend Yield Passive Income Portfolio (DYPI). The full purchase amount was $1,392.75 and represents roughly 1.3 percent of the portfolio worth.

Unilever is a major diversified food company with headquarter in the United Kingdom. Unilever PLC operates as a fast-moving consumer goods company in Asia, Africa, Europe, and the Americas. It offers personal care products, including skin care and hair care products, deodorants, and oral care products.

UL has a strong market position is several markets worldwide and is one of the dominant global player in the emerging markets. 32.82 percent of sales are generated in the Americans nations, 31.83 percent in Europe and 32.33 percent in Asian/Pacific countries. With this in mind, Unilever is behind Nestlé one of the world best diversified foods and consumer goods distributor.

Dividends and EPS
The new stake will give me additional $50 in dividends per year. The full expected portfolio dividend income is now $1,016.08. The passive income should grow to a total amount of 3k – 4k by the end of this year. This should be possible with my current cash position.

I paid $26,377.20 for all 19 stocks combined. Now, they are worth $27,581.25. Not enough, I still have $73.7k in cash for further investments and I plan to increase the current stock holdings to a total number of 50-70 shares. So I try to put every Friday one position with an attractive yield into the portfolio. I follow a buy and hold strategy and like to use the dividends for further investments. The investment horizon is long-term, 10 years or more.

Portfolio Holdings (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

This is my investment approach. If you like to make money by trading stocks and realizing a quick return, this is the wrong investment site. Dividend growth stocks will not make you rich in a short period but they can deliver you a solid return over the long-run. I talk about a performance of around 8% in average.

The DYPI portfolio was funded with 100k virtual on October 03, 2012. The aim is to show how long-term dividend growth stock investing works. I personally made huge amount of money only by buying dividend stocks, receiving dividends and selling them in order to invest the new money into more attractive stocks. This strategy resulted in a yearly double-digit return.

Well, Unilever is a great stock but also not really cheap. The current P/E is at 19.34 and the forward P/E is 15.80. The yield is at 3.25%, that’s ok in my view. You might think that I am betting on the foods and consumer sector and a strong gaining momentum. That’s not right. I believe that the sector has great values for long-term investors. Most of the best and safest dividend stocks come from the consumer and foods sector.

The full DYPI portfolio is up 1.34% since the funding date. The stocks alone generated a return of 4.56%. That’s a slightly underperformance but the volatility was also much lower. What do you think about Unilever? Do you own some shares of the company or do you like competitors of Unilever much more? Let me know by leaving a comment.

The income perspective:


Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
N/A
4.17

28.90
50
$64.00
$1,534.50
LMT
Lockheed Martin C
10.53
4.72

92.72
20
$83.00
$1,760.20
INTC
Intel Corporation
9.86
4.21

21.27
50
$44.25
$1,050.00
MCD
McDonald's Corpor
17.71
3.03

87.33
15
$43.05
$1,423.05
WU
Western Union Com
7.26
2.9

11.95
100
$42.50
$1,466.00
PM
Philip Morris Int
17.5
3.63

85.42
20
$65.58
$1,809.00
JNJ
Johnson & Johnson
19.56
3.18

69.19
20
$48.00
$1,509.60
MO
Altria Group Inc
16.85
4.9

33.48
40
$68.00
$1,387.60
SYY
Sysco Corporation
17.37
3.45

31.65
40
$43.60
$1,264.40
DRI
Darden Restaurant
13.53
4.08

46.66
30
$57.90
$1,420.80
CA
CA Inc.
12.72
3

21.86
50
$37.50
$1,251.00
PG
Procter & Gamble
17.19
2.97

68.72
25
$56.20
$1,893.75
KRFT
Kraft Foods Group
14.32
4.26

44.41
40
$80.00
$1,876.00
MAT
Mattel Inc.
18.15
3.08

36.45
40
$49.60
$1,612.80
PEP
Pepsico Inc. Com
19.33
2.93

70.88
20
$42.56
$1,452.00
KMB
Kimberly-Clark Co
20.57
3.26

86.82
15
$44.40
$1,363.50
COP
ConocoPhillips Co
8.61
4.56

61.06
20
$52.80
$1,157.40
GIS
General Mills In
15.72
3.04

42.13
30
$38.85
$1,278.00
UL
Unilever PLC Comm
19.88
3.25

39.65
35
$54.29
$1,387.75
















$1,016.08
$27,897.35
















Average Yield
3.64%
















Yield On Cost
3.82%

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