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3/10/2013

Kellogg Is The New Stock Holding In The Dividend Yield Passive Income Portfolio

On Friday 08, 2013 I put 25 shares of the processed & packaged goods company Kellogg into the Dividend Yield Passive Income Portfolio (DYPI). 

The total purchase amount was $1,543 at a stock price of $61.52. Kellogg represents now 1.47 percent of the full portfolio which was funded virtual with 100k on October 03, 2012.

Kellogg manufactures and markets ready-to-eat cereal and convenience food products primarily in North America, Europe, Latin America, and the Asia Pacific. It primarily produces snacks and frozen food, including cookies, crackers, toaster pastries, cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The company sells its products to grocery trade through its direct sales force, brokers, and distributors under the Kellogg's name.

The current dividend yield of Kellogg amounts to 2.86% and the P/E ratio has a value of 23.94. Growth is expected in earnings for the next years around the 7% percent mark. That’s solid in my view.

The new stake will hike my current dividend income by $44. The total gross income is now estimated at $1,221.97. I plan to boost the passive income to $3,000 – 4,000 by the end of the year. All I need to do is to invest the remaining capital of $67,127.40 into dividend stocks with a yield around the 3% mark.

Dividend Yield Passive Income Portfolio


Latest Portfolio Transactions

The Kellogg buy is the second stock purchase with a yield below the 3% yield. You can see that its getting hard to find stocks with a higher yield. If I have luck, the next hike can lift the current yield above the magic level.

For sure, high quality stocks have a high price and you must pay it or leave the battle field. In my view it is still a better choice to have high valuated stocks with a top long-term growth perspective as being invested in bonds with a longer duration. In times of rising interest rates and gaining inflation, your bond portfolio will definitely loose the ground. Dividend stocks like Kellogg force the inflation and get stronger with every recession.


Kellogg Earnings and Dividends

The full portfolio is up 2.2 percent since the date of funding. Major indices gained 3-6% during the same period. The lower performance is reasonable with a high cash amount and the slow purchase process. I buy only one stock a week for around 1-2 percent of the portfolio value. This strategy hedges me against falling markets and could give a better average price but will also lead to a worser performance if the markets go strong up. Unfortunately, this happened in the past. My stockholdings delivered a total return of 6.15%. That’s a pretty good ratio and in-line with the market.


Portfolio Performance

Here is the income perspective of the portfolio:


Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
12.34
4.18

28.90
50
$64.25
$1,536.00
LMT
Lockheed Martin C
10.62
4.84

92.72
20
$86.00
$1,799.80
INTC
Intel Corporation
10.28
4.04

21.27
50
$44.25
$1,079.00
MCD
McDonald's Corpor
18.11
3.03

87.33
15
$44.10
$1,480.65
WU
Western Union Com
8.52
2.95

11.95
100
$42.50
$1,463.00
PM
Philip Morris Int
17.76
3.57

85.42
20
$65.58
$1,822.20
JNJ
Johnson & Johnson
20.14
3.14

69.19
20
$48.80
$1,563.80
MO
Altria Group Inc
16.49
5.01

33.48
40
$68.00
$1,360.00
SYY
Sysco Corporation
17.95
3.34

31.65
40
$43.60
$1,330.80
DRI
Darden Restaurant
13.57
4.06

46.66
30
$57.90
$1,419.90
CA
CA Inc.
12.69
4

21.86
50
$50.00
$1,254.00
PG
Procter & Gamble
17.45
2.92

68.72
25
$56.20
$1,929.50
KRFT
Kraft Foods Group
17.83
4.02

44.41
40
$80.00
$1,988.40
MAT
Mattel Inc.
18.58
3.13

36.45
40
$51.60
$1,657.20
PEP
Pepsico Inc. Com
19.66
2.79

70.88
20
$43.00
$1,544.00
KMB
Kimberly-Clark Co
21.26
3.22

86.82
15
$45.45
$1,412.85
COP
ConocoPhillips Co
8.61
4.52

61.06
20
$52.80
$1,167.80
GIS
General Mills In
17.14
2.79

42.13
30
$38.85
$1,389.90
UL
Unilever PLC Comm
20.45
3.08

39.65
35
$43.89
$1,431.15
NSRGY
NESTLE SA REG SHR
19.97
2.96

68.69
30
$63.15
$2,125.80
GE
General Electric
18.33
3.04

23.39
65
$46.80
$1,545.05
ADP
Automatic Data Pr
22.09
2.62

61.65
25
$41.50
$1,583.75
K
Kellogg Company C
23.02
2.85

61.52
25
$43.75
$1,538.00
















$1,221.97
$35,422.55
















Average Yield
3.45%
















Yield On Cost
3.67%

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