6/23/2013

AT&T: 5.22% Yield From A Leading Telecom Services Company For My Passive Income Portfolio

For readers who a new to the matter and my dividend growth philosophy: I funded a virtual portfolio with 100k on October 04, 2012 with the aim to build a passive income stream that doubles each five to ten years. I plan to purchase each week one stock holding until the money is fully invested. The total number of constituents is expected at 50 – 70 companies and the dividend income should be at least at $3,000 per year.

--------------------------------------

Let’s go forward. The markets in are in a small turmoil. Bernanke announced to reduce its quantitative easing at the beginning of autumn this year. The markets were surprised about the fast mind changing views.

Let me mention one thing: It’s always good to reduce the artificial influence from national banks. It’s also good that the Fed is the first institution who sweeps off the enduring mechanism of programs to improve the economy.
The economy hasn’t shown bigger growth signals due the Fed stimulus. The only thing that happens is that the risk of asset bubbles increases rapidly. In order to avoid future price hikes in special markets, they needed to shut down their expansive monetary policy.

Last Friday I bought AT&T shares in an amount of around 1,000 for the Dividend Yield Passive Income Portfolio. The leading telecom provider yields above the 5 percent mark and is one of the biggest companies in the world with a current market capitalization of USD 190 billion.

Portfolio Part I (Click to enlarge)

Portfolio Part II (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

AT&T provides telecommunications services to consumers, businesses, and other providers in the United States and internationally. The company operates in three segments: Wireless, Wireline, and Other. The Wireless segment offers various wireless voice and data communication services, including local wireless communications services, long-distance services, and roaming services. It also sells various handsets, wirelessly enabled computers, and personal computer wireless data cards through its owned stores, agents, or third-party retail stores; and accessories comprising carrying cases, hands-free devices, batteries, battery chargers, and other items to consumers, as well as to agents and third-party distributors.

Earnings and Dividend Payments of AT&T

As you might have seen, I invest more and more money into telecoms. They are not cheap but they can give me more stability for my asset allocation. In addition, telecoms are some of the biggest losers in my portfolio. Maybe I start to repurchase some shares of China Mobile, Rogers or Tesco if the stock performance worsens.

I personally believe that telecoms have a tough fight against falling prices on higher volumes. They are something like a utility but in my view they have also a bigger potential than electric or gas utilities. The gird of AT&T is a real asset and it will grow. For sure this cost a lot of money and will be a burden of the stock price.

The new stake will give me around $50 bucks in additional dividend income. For the full year, the income is now expected at $1,905. The current yield is at 3.33 percent while the yield on cost amounts to 3.5 percent.

The return of the portfolio was hit badly with the recent sell-off. Because of the high cash amount of $46.2k it’s still manageable. As of now, the life-to-date performance is at 3.16%. The stockholdings had a performance of 4.79 percent.

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
15.43
3.97

28.90
50
$64.50
$1,610.00
LMT
Lockheed Martin C
12.13
4.24

92.72
20
$89.00
$2,101.20
INTC
Intel Corporation
12.09
3.66

21.27
50
$44.25
$1,209.75
MCD
McDonald's Corpor
17.95
3.11

87.33
15
$45.15
$1,458.45
WU
Western Union Com
9.91
2.88

11.95
100
$47.50
$1,658.00
PM
Philip Morris Int
16.66
3.88

85.42
20
$67.18
$1,749.20
JNJ
Johnson & Johnson
22.44
3.01

69.19
20
$49.80
$1,664.00
MO
Altria Group Inc
15.89
5.13

33.48
40
$70.40
$1,397.20
SYY
Sysco Corporation
19.42
3.29

31.65
40
$44.00
$1,347.20
DRI
Darden Restaurant
15.62
3.9

46.66
30
$60.00
$1,503.60
CA
CA Inc.
13.35
3.62

21.86
50
$50.00
$1,376.00
PG
Procter & Gamble
16.86
3.04

68.72
25
$57.20
$1,935.75
KRFT
Kraft Foods Group
19.69
3.74

44.41
40
$80.00
$2,138.40
MAT
Mattel Inc.
19.14
2.93

36.45
40
$51.60
$1,764.80
PEP
Pepsico Inc. Com
20.22
2.76

70.88
20
$43.60
$1,602.60
KMB
Kimberly-Clark Co
20.59
3.27

86.82
15
$46.50
$1,436.70
COP
ConocoPhillips Co
9.79
4.38

61.06
20
$52.80
$1,207.20
GIS
General Mills In
17.66
2.74

42.13
30
$39.60
$1,459.20
UL
Unilever PLC Comm
19.83
3.24

39.65
35
$44.91
$1,384.25
NSRGY
NESTLE SA REG SHR
18.57
3.3

68.69
30
$65.31
$1,957.20
GE
General Electric
17.22
3.18

23.39
65
$48.10
$1,518.40
ADP
Automatic Data Pr
23.2
1.85

61.65
25
$31.63
$1,717.00
K
Kellogg Company C
24.59
2.81

61.52
25
$44.00
$1,581.25
KO
Coca-Cola Company
20.48
2.73

38.83
40
$42.80
$1,590.40
RTN
Raytheon Company
11.59
3.1

57.04
20
$41.00
$1,322.20
RCI
Rogers Communicat
12.57
3.86

51.06
30
$49.98
$1,328.70
GPC
Genuine Parts Com
18.47
2.7

77.06
20
$41.28
$1,526.20
TSCDY
TESCO PLC SPONS A
206
4.59

17.98
70
$49.63
$1,084.30
APD
Air Products and
16.89
2.79

85.71
15
$39.45
$1,418.85
GSK
GlaxoSmithKline P
18.1
4.74

52.16
30
$70.38
$1,473.90
WMT
Wal-Mart Stores
14.39
2.38

79.25
20
$34.72
$1,470.20
BTI
British American
16.34
4

114.6
13
$53.82
$1,348.75
CHL
China Mobile Limi
9.42
4.6

55.32
25
$54.95
$1,237.50
MMM
3M Company Common
17.16
2.25

110.27
15
$36.75
$1,643.85
TUP
Tupperware Brands
22.05
2.57

80.98
15
$29.40
$1,132.95
IBM
International Bus
13.61
1.77

206.35
8
$28.00
$1,563.68
HAS
Hasbro Inc.
17.37
3.29

44.09
30
$43.20
$1,330.20
T
AT&T Inc.
26.57
5.18

34.47
30
$53.40
$1,034.10
















$1,905.78
$57,283.13
















Average Yield
3.33%
















Yield On Cost
3.50%

No comments:

Post a Comment

Do you have any questions or notes to this article?
Please let me know your thoughts and we will discuss it.

If you like to receive the Dividend Weekly for free (weekly published E-Book with around 1,000 best dividend paying stocks), please enter your email and verify your adress. Easily unsubscribe at any time.