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Specialized Chemical Company Air Products & Chemicals Is New In My Portfolio

I screened my database by stocks which have raised their dividend payments over more than 25 consecutive years in order to find the next pick for my Dividend Yield Passive Income Portfolio (DYPI). I’m still locking stock stocks with a yield above the 3 percent mark. 

After the recent earnings announcements, it could be possible to get some new interesting picks.

The earnings season started mixed. Some of the great dividend stocks announced better than expected results and the stock price exploded. Others reported bad results and the stock price plunged. I noticed a higher volatility in my trading segment. I personally think that the 10 percent gain on major indices within only 3 month was definitely too much and without value. With the current earnings reports and the ongoing Euro crisis, some investors come back to normal.

What does my screen delivered? One stock that is not yet in my DYPI-Portfolio is Air Products & Chemicals (APD). The company was often subject of my research and highly discussed by my readers. I called APD a Dividend Champion with a higher volatility because in recessions, the earnings could decrease by 50 percent with bad influence to the stock price.


Earnings and Dividends From Air Products And Chemicals

So, my ideas getting rare and I need to find solutions. As a long-term investor, you are not interested in current market situations; you buy a structure with long-term growth potential. Only a growing business is a good business. A company that generates in 10 years the twice amount of sales and 150 percent more earnings should have a higher valuation if further growth is expected.

APD fulfill these criteria, despite the fact that they are more cyclic like my loving companies McDonalds, Coca Cola or even Procter & Gamble. APD raised its dividends over a period of 31 consecutive years and is a good dividend growth stock. Its current yield amounts to 3.31 percent and the P/E is at 17.49. The forward P/E is still cheap with a ratio of 13.41.

I purchased 15 shares at $85.71. The total amount was $1,285.65 and represents roughly 1.24 percent of the full portfolio market value. The DYPI-Portfolio was funded on October 04, 2012 with $100,000 virtual. The strategy is to buy the best dividend paying growth stocks and hold them for the long-term.


Dividend Yield Passive Income Portfolio (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

As of now, the current stock holdings produced a gain of 7.63%, a value in-line with the current market developments. Because of the high cash amount of $58,975.02, the full portfolio has only a performance of 3.58 percent.


Portfolio Performance

The new stake will give me around $40 bucks in additional dividends per year. The full year dividend income of the complete portfolio is now estimated at $1,467.76. I plan to boost the income to a total income of $3,000 to $4,000. All I need to do is to buy stocks with a yield of more than 3 percent.

Here is the income perspective of the portfolio:

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
12.9
4

28.90
50
$64.25
$1,620.00
LMT
Lockheed Martin C
11.37
4.53

92.72
20
$86.00
$1,925.60
INTC
Intel Corporation
10.44
3.98

21.27
50
$44.25
$1,122.00
MCD
McDonald's Corpor
19.01
2.88

87.33
15
$44.10
$1,498.80
WU
Western Union Com
8.59
3.1

11.95
100
$45.00
$1,447.00
PM
Philip Morris Int
17.74
3.66

85.42
20
$67.18
$1,839.00
JNJ
Johnson & Johnson
22.59
2.93

69.19
20
$48.80
$1,689.80
MO
Altria Group Inc
16.84
4.99

33.48
40
$69.20
$1,400.80
SYY
Sysco Corporation
18.8
3.21

31.65
40
$44.00
$1,388.40
DRI
Darden Restaurant
14.89
4.1

46.66
30
$60.00
$1,466.70
CA
CA Inc.
12.43
4.09

21.86
50
$50.00
$1,218.00
PG
Procter & Gamble
18.13
2.81

68.72
25
$56.20
$2,035.75
KRFT
Kraft Foods Group
18.21
3.97

44.41
40
$80.00
$2,014.00
MAT
Mattel Inc.
19.8
2.93

36.45
40
$51.60
$1,760.36
PEP
Pepsico Inc. Com
20.71
2.65

70.88
20
$43.00
$1,655.40
KMB
Kimberly-Clark Co
22.93
2.99

86.82
15
$45.45
$1,591.50
COP
ConocoPhillips Co
8.53
4.59

61.06
20
$52.80
$1,149.80
GIS
General Mills In
18.26
2.65

42.13
30
$39.60
$1,510.20
UL
Unilever PLC Comm
21.16
2.97

39.65
35
$43.89
$1,486.45
NSRGY
NESTLE SA REG SHR
19.61
6.14

68.69
30
$128.46
$2,102.70
GE
General Electric
17.55
3.18

23.39
65
$46.80
$1,413.75
ADP
Automatic Data Pr
22.54
2.57

61.65
25
$41.50
$1,630.75
K
Kellogg Company C
24.31
2.7

61.52
25
$43.75
$1,652.50
KO
Coca-Cola Company
22.03
2.48

38.83
40
$41.80
$1,706.40
RTN
Raytheon Company
10.14
3.65

57.04
20
$41.00
$1,143.00
RCI
Rogers Communicat
15.06
3.25

51.06
30
$48.69
$1,513.50
GPC
Genuine Parts Com
18.19
2.69

77.06
20
$40.44
$1,473.20
TSCDY
TESCO PLC SPONS A
10.33
4.22

17.98
70
$49.63
$1,162.00
APD
Air Products and
15.19
3.1

85.71
15
$39.45
$1,285.65
















$1,467.76
$42,455.36
















Average Yield
3.46%
















Yield On Cost
3.53%

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