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GlaxoSmithKline: Dividend Stock Buy For The Dividend Yield Passive Income Portfolio

The British drug manufacturer GlaxoSmithKline is the next stock purchase for my Dividend Yield Passive Income Portfolio (DYPI). I bought 30 shares at $52.16, the ADR version of the British stock. 

The total purchase amount was $1,569.80 and represents roughly 1.5 percent of the full portfolio value.


Dividend Yield Passive Income Portfolio (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

GlaxoSmithKline discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. It offers pharmaceutical products in various therapeutic areas comprising respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines, and HIV. The company provides prescription medicines to treat a range of conditions, including infections, depression, skin conditions, asthma, heart and circulatory disease, and cancer.

GSK is one of the world’s leading drug manufactures with a solid non pharmaceutical division. It sells also oral care products and is the second biggest global player behind Colgate. The current dividend yield is above the 5 percent mark at 5.29 percent and the price to earnings ratio amounts to 18.90. The stock started to gain more momentum which resulted in a year to date gain of 21.81 percent.


Earnings and Dividends From GlaxoSmithKline GSK

The new GSK stake gives me $70.35 dividend income. The full portfolio dividend income is now estimated at $1,405.61. I plan to increase the total number of stocks by the end of the year to 50-70. As a result, the dividend income should grew to $3,000 to 4,000.

All I need to do is to hunt further for stocks with a yield over 3 percent. As of now, the acquisition process was successful done with a yield on cost of 3.26%.

The DYPI-Portfolio was funded virtual on October 04, 2012 with 100k. Each week, I try to put one stock into the portfolio with a solid dividend growth history as well as an attractive yield. It’s a slow buying process but in line with my strategy to show you how long-term dividend investing works.
Not all stocks will deliver a great performance over the time but I believe that the huge amount of stockholdings should result in an adequate annual return of at least 8 percent of which 3 percent are dividends.

Because of the slow purchase process and the high cash amount, the full portfolio performance is up 4 percent since the date of funding. A deeper look at the stockholdings shows that the core performance is at 8.46 percent, a value better than the Dow Jones, Nasdaq and S&P 500.


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
13.3
3.88

28.90
50
$64.25
$1,659.00
LMT
Lockheed Martin C
11.35
4.38

92.72
20
$86.00
$1,979.40
INTC
Intel Corporation
11.68
3.79

21.27
50
$44.25
$1,170.00
MCD
McDonald's Corpor
18.72
2.91

87.33
15
$44.10
$1,513.35
WU
Western Union Com
8.69
3.07

11.95
100
$45.00
$1,458.00
PM
Philip Morris Int
18.2
3.55

85.42
20
$67.18
$1,906.20
JNJ
Johnson & Johnson
23.15
2.86

69.19
20
$48.80
$1,702.40
MO
Altria Group Inc
17.46
4.81

33.48
40
$69.20
$1,442.80
SYY
Sysco Corporation
19.15
3.16

31.65
40
$44.00
$1,392.00
DRI
Darden Restaurant
15.54
3.92

46.66
30
$60.00
$1,529.70
CA
CA Inc.
13.23
3.84

21.86
50
$50.00
$1,299.00
PG
Procter & Gamble
17.38
2.99

68.72
25
$57.20
$1,927.50
KRFT
Kraft Foods Group
18.65
3.93

44.41
40
$80.00
$2,036.80
MAT
Mattel Inc.
19.46
2.88

36.45
40
$51.60
$1,786.00
PEP
Pepsico Inc. Com
21.22
2.6

70.88
20
$43.00
$1,650.20
KMB
Kimberly-Clark Co
22.51
2.93

86.82
15
$45.45
$1,546.80
COP
ConocoPhillips Co
8.68
4.48

61.06
20
$52.80
$1,178.20
GIS
General Mills In
18.09
2.67

42.13
30
$39.60
$1,490.40
UL
Unilever PLC Comm
21.3
2.95

39.65
35
$43.89
$1,493.80
NSRGY
NESTLE SA REG SHR
19.69
3.11

68.69
30
$65.31
$2,094.84
GE
General Electric
16.26
3.28

23.39
65
$46.80
$1,443.65
ADP
Automatic Data Pr
23.29
2.49

61.65
25
$41.50
$1,664.75
K
Kellogg Company C
24.64
2.66

61.52
25
$43.75
$1,642.50
KO
Coca-Cola Company
22.16
2.47

38.83
40
$41.80
$1,684.00
RTN
Raytheon Company
10.7
3.46

57.04
20
$41.00
$1,204.00
RCI
Rogers Communicat
14.72
3.32

51.06
30
$48.69
$1,479.60
GPC
Genuine Parts Com
18.24
2.68

77.06
20
$40.44
$1,500.80
TSCDY
TESCO PLC SPONS A
230
4.11

17.98
70
$49.63
$1,227.45
APD
Air Products and
15.4
3.06

85.71
15
$39.45
$1,283.85
GSK
GlaxoSmithKline P
18.93
5.29

52.16
30
$70.35
$1,564.80
















$1,405.61
$42,875.69
















Average Yield
3.28%
















Yield On Cost
3.26%

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