5/26/2013

Diversified Industrial Technology Company 3M Completes The Dividend Yield Passive Income Portfolio

Despite the small correction within the financial markets, the asset prices for high-quality dividend growth stocks are still high. We need a bigger correction to get back to normal prices but the current forces are too strength. It’s a process of valuation adjustments – stock yields come down to bond yields.

Last Friday, I put 15 shares of the industrial conglomerate into the Dividend Yield Passive Income (DYPI) Portfolio. I bought the company at 110.27 which resulted into a total purchase amount of $ 1,654.05. Below is a graph of the latest earnings and dividend developments from the recent five years.

Earnings and Dividends of MMM 3M

3M Company is a diversified technology company with a presence in the industrial and transportation; health care; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M manages its operations in six business segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics, and Electro and Communications. 

MMM is also not cheap but compared to other dividend champions lower valuated. The current P/E amounts to 17.42 while the forward P/E is calculated at 15.02. Investors get a yield of 2.30%.

Dividend Yield Passive Income Portfolio (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

The 3M position is the eleventh biggest position within the DYPI-Portfolio. The portfolio has now 34 constituents and was funded on October 04, 2012. I plan to purchase each week one stake at cost between $1 to $2k. As a result, the cash reduced from $100k to $51. It’s a strategy of slow purchase and if the markets go further strong up, I need to close my acquisition process and rest on cash. The current valuation is too high to get good long-term yields.

What happened with my current holdings? They realized a gain of 10.24 percent. Because of the high cash amount (around 50 percent of the portfolio is still not invested), the portfolio performance life-to-date amounts to 5.46%.

The new stake will give me around $37 bucks per year in additional dividend income. The full year estimated passive dividend income is now at $1,718.

Here is the income perspective of the portfolio:

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
16.66
3.68

28.90
50
$64.50
$1,761.50
LMT
Lockheed Martin C
12.28
4.05

92.72
20
$86.00
$2,141.20
INTC
Intel Corporation
12.02
3.68

21.27
50
$44.25
$1,196.15
MCD
McDonald's Corpor
18.74
2.91

87.33
15
$44.10
$1,504.35
WU
Western Union Com
9.9
2.73

11.95
100
$45.00
$1,645.00
PM
Philip Morris Int
18.13
3.56

85.42
20
$67.18
$1,882.40
JNJ
Johnson & Johnson
23.69
2.86

69.19
20
$49.80
$1,736.40
MO
Altria Group Inc
17.06
4.69

33.48
40
$69.20
$1,483.60
SYY
Sysco Corporation
20.09
3.18

31.65
40
$44.00
$1,392.80
DRI
Darden Restaurant
16.23
3.76

46.66
30
$60.00
$1,584.90
CA
CA Inc.
13.21
3.66

21.86
50
$50.00
$1,370.00
PG
Procter & Gamble
17.63
2.91

68.72
25
$57.20
$2,047.00
KRFT
Kraft Foods Group
21.14
3.51

44.41
40
$80.00
$2,280.40
MAT
Mattel Inc.
19.72
2.84

36.45
40
$51.60
$1,825.20
PEP
Pepsico Inc. Com
21.04
2.62

70.88
20
$43.00
$1,651.60
KMB
Kimberly-Clark Co
22.31
2.95

86.82
15
$45.45
$1,552.65
COP
ConocoPhillips Co
10.19
4.2

61.06
20
$52.80
$1,250.60
GIS
General Mills In
17.89
2.7

42.13
30
$39.60
$1,469.40
UL
Unilever PLC Comm
21.71
2.96

39.65
35
$44.91
$1,513.05
NSRGY
NESTLE SA REG SHR
19.11
3.2

68.69
30
$65.31
$2,049.00
GE
General Electric
17.53
3.04

23.39
65
$46.80
$1,529.45
ADP
Automatic Data Pr
23.79
2.37

61.65
25
$41.50
$1,746.25
K
Kellogg Company C
25.42
2.71

61.52
25
$43.75
$1,611.25
KO
Coca-Cola Company
21.94
2.49

38.83
40
$41.80
$1,689.60
RTN
Raytheon Company
11.71
3.07

57.04
20
$41.00
$1,334.60
RCI
Rogers Communicat
13.65
3.46

51.06
30
$48.69
$1,390.50
GPC
Genuine Parts Com
19.79
2.47

77.06
20
$40.44
$1,628.00
TSCDY
TESCO PLC SPONS A
N/A
4.05

17.98
70
$49.63
$1,212.40
APD
Air Products and
16.87
2.79

85.71
15
$39.45
$1,408.95
GSK
GlaxoSmithKline P
19.27
4.45

52.16
30
$70.38
$1,589.10
WMT
Wal-Mart Stores
15.04
2.27

79.25
20
$34.72
$1,546.20
BTI
British American
17.81
3.67

114.6
13
$53.82
$1,466.53
CHL
China Mobile Limi
10.5
1.98

55.32
25
$26.33
$1,330.50
mmm
3M Company Common
17.41
2.22

110.27
15
$36.75
$1,654.05
















$1,718.95
$54,474.58
















Average Yield
3.16%
















Yield On Cost
3.49%

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