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China Mobile: The Next Pick For The Dividend Yield Passive Income Portfolio

I started my screen last Friday to scout for the next attractive pick of my Dividend Yield Passive Income Portfolio (DYPI). I’ve screened 443 dividend growth stocks with a payment increase of at least five consecutive years by the cheapest forward P/E’s. One higher yielding company from China jumped direct into my eyes. It was China Mobile.

China Mobile Limited is an investment holding company. The Company and its subsidiaries provide mobile telecommunications and related services in 31 provinces, autonomous regions and directly-administered municipalities in Mainland China and Hong Kong. As of December 31, 2012, its total customer reached 710 million. The Company's products and services include voice services, which refers to the business where customers make and receive calls with a mobile phone at any point within the coverage of the Company's mobile telecommunications networks; data services, which comprise short message service and multimedia messaging service (SMS & MMS), wireless data traffic, and applications and information services.


I bought 25 shares for $55.32 or $1,383 in total. CHL yields at 3.72% and has only a current P/E of 10.70. The forward price to earnings ratio amounts to 10.89 because of lower expected earnings. That’s the big burden of the stock. Earnings are expected to fall by 3.42 percent for the next year and 5.60 percent for the upcoming five years.

Portfolio Overview Dividend Yield Passive Income (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

I like CHL because it’s a big infrastructure company in China. 100 percent of sales come from Asian countries. China Mobile has no significant long-term debt but $71 billion cash and generates around $230 billion operating cashflows per year. Over the recent 10 years, CHL tripled sales and fivefold net income.

China Mobile is a classic Dividend Contender. The company managed to raise dividends over a period of seven consecutive years.

The new stake will give me around $55 bucks per year. The total dividend income is now estimated at $1,681. With still $52,992 in cash on banks, I have enough potential to boost the passive income to a level over $3,000 by the end of this year. All I need to do is to find each week a stock with a yield over 3 percent.

As of now, the current portfolio yield is far above the magic ratio, at 3.53 percent. Because of the small capital gain, the current portfolio yield is at 3.16 percent.

Stocks from the portfolio are up 11.5 percent in average. Because of the high cash amount (50 percent of the money is still not invested), the current portfolio performance since the date of funding is at 5.89 percent.

Here is the income perspective:

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
16.33
3.74

28.90
50
$64.25
$1,725.50
LMT
Lockheed Martin C
12.01
4.13

92.72
20
$86.00
$2,128.20
INTC
Intel Corporation
11.96
3.7

21.27
50
$44.25
$1,202.00
MCD
McDonald's Corpor
18.75
2.91

87.33
15
$44.10
$1,523.10
WU
Western Union Com
9.87
2.74

11.95
100
$45.00
$1,665.00
PM
Philip Morris Int
18.35
3.52

85.42
20
$67.18
$1,913.60
JNJ
Johnson & Johnson
23.75
2.79

69.19
20
$48.80
$1,761.80
MO
Altria Group Inc
17.2
4.65

33.48
40
$69.20
$1,497.60
SYY
Sysco Corporation
20.28
3.15

31.65
40
$44.00
$1,405.60
DRI
Darden Restaurant
16.1
3.79

46.66
30
$60.00
$1,602.90
CA
CA Inc.
13.19
3.66

21.86
50
$50.00
$1,384.50
PG
Procter & Gamble
17.97
2.85

68.72
25
$57.20
$2,000.50
KRFT
Kraft Foods Group
20.63
3.56

44.41
40
$80.00
$2,244.40
MAT
Mattel Inc.
20.08
2.79

36.45
40
$51.60
$1,871.60
PEP
Pepsico Inc. Com
21.46
2.57

70.88
20
$43.00
$1,676.00
KMB
Kimberly-Clark Co
22.57
2.92

86.82
15
$45.45
$1,565.25
COP
ConocoPhillips Co
10.13
3.17

61.06
20
$52.80
$1,266.20
GIS
General Mills In
18.49
2.62

42.13
30
$39.60
$1,510.80
UL
Unilever PLC Comm
21.69
2.97

39.65
35
$44.91
$1,512.70
NSRGY
NESTLE SA REG SHR
19.43
3.15

68.69
30
$65.31
$2,086.20
GE
General Electric
17.24
3.09

23.39
65
$46.80
$1,524.90
ADP
Automatic Data Pr
24.14
2.34

61.65
25
$41.50
$1,799.75
K
Kellogg Company C
25.86
2.66

61.52
25
$43.75
$1,641.50
KO
Coca-Cola Company
22.55
2.43

38.83
40
$41.80
$1,718.80
RTN
Raytheon Company
11.51
3.12

57.04
20
$41.00
$1,337.80
RCI
Rogers Communicat
13.6
3.48

51.06
30
$48.69
$1,425.00
GPC
Genuine Parts Com
19.28
2.53

77.06
20
$40.44
$1,625.00
TSCDY
TESCO PLC SPONS A
N/A
4.13

17.98
70
$49.63
$1,220.10
APD
Air Products and
16.62
2.83

85.71
15
$39.45
$1,414.95
GSK
GlaxoSmithKline P
19.05
4.5

52.16
30
$70.38
$1,566.60
WMT
Wal-Mart Stores
15.47
2.21

79.25
20
$34.72
$1,557.40
BTI
British American
18.06
3.62

114.6
13
$53.82
$1,490.32
CHL
China Mobile Limi
10.84
3.97

55.32
25
$54.90
$1,383.00
















$1,680.95
$53,248.57
















Average Yield
3.16%
















Yield On Cost
3.53%

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