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Dividend Yield Passive Income Portfolio Welcomes Cisco Systems

I’m a real lover of technology stocks from the old-tech economy. Most of the big players of the first area from the internet boom are worth billions and started to pay dividends recently. They still have huge potential to hike dividends and billions of cash on their balance sheets.

I purchased last Friday 50 shares of the networking and communication devices giant Cisco Systems. My total purchase amount was around USD 1,300 bucks and will produce approximately 33 bucks in dividend income at a 2.6 percent dividend yield. The current P/E of Cisco is acceptable in my view at 14.55 and 12.41 for the next year. Remember there are forecasts of growing earnings per share of 5 percent for the next half decade. With a payout of 30 percent or so, it’s a great opportunity for long-term dividend growth investors. I weighted the stock with 1.21 percent in my Dividend Yield Passive Income Portfolio.

Dividend Yield Passive Income Portfolio (Click to enlarge)

Dividend Yield Passive Income Portfolio (Click to enlarge)
  
Latest Portfolio Transactions (Click to enlarge)

Cisco designs, manufactures, and sells Internet protocol (IP) based networking and other products related to the communications and information technology industries worldwide. It offers switching products, including fixed-configuration and modular switches, and storage products that provide connectivity to end users, workstations, IP phones, access points, and servers, as well as function as aggregators on local-area networks and wide-area networks; and routers that interconnects public and private IP networks for mobile, data, voice, and video applications.



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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.
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The full year dividend income of the portfolio is now estimated at USD 2,114.33. I paid around 67k for all these 42 stockholdings combined and paid 225 bucks in total for transaction fee. The yield on cost amounts to 3.33 percent. Due to the capital gains of the stocks, the current portfolio yield is at 3.09 percent.

With USD 38,749.50 deposited cash on bank, it’s still easy to reach a 3k dividend income by the end of the year if I buy each week a stock with a yield on cost of more than 3 percent. The Cisco share does not fulfill this criterion but my average dividend income is still high enough to keep this aims alive.
Stocks from the income vehicle are up 10.25 percent in average since the date of funding. The performance is an underperformance compared to the major indices like Dow Jones or S&P 500. This is reasonable to the slow purchasing process. I buy each week only one stake with 1-2 k. In markets with strong forces of the bulls, the strategy will lose performance.

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
16.42
3.72

28.90
50
$64.25
$1,720.50
LMT
Lockheed Martin C
13.7
3.52

92.72
20
$86.00
$2,475.40
INTC
Intel Corporation
12.53
3.88

21.27
50
$45.00
$1,161.00
MCD
McDonald's Corpor
18.13
2.97

87.33
15
$44.10
$1,488.00
WU
Western Union Com
10.91
2.48

11.95
100
$45.00
$1,831.00
PM
Philip Morris Int
17.43
3.74

85.42
20
$67.18
$1,791.80
JNJ
Johnson & Johnson
20.81
2.6

69.19
20
$48.80
$1,887.80
MO
Altria Group Inc
16.24
4.87

33.48
40
$69.20
$1,427.20
SYY
Sysco Corporation
20.23
3.16

31.65
40
$44.00
$1,399.20
DRI
Darden Restaurant
15.81
4.04

46.66
30
$60.00
$1,496.40
CA
CA Inc.
13.16
3.32

21.86
50
$50.00
$1,519.50
PG
Procter & Gamble
18.29
2.75

68.72
25
$56.20
$2,032.25
KRFT
Kraft Foods Group
21.23
3.48

44.41
40
$80.00
$2,300.00
MAT
Mattel Inc.
19.15
3.14

36.45
40
$53.60
$1,713.60
PEP
Pepsico Inc. Com
19.84
2.55

70.88
20
$43.00
$1,685.80
KMB
Kimberly-Clark Co
21.01
3.07

86.82
15
$45.45
$1,494.15
COP
ConocoPhillips Co
10.73
29.75

61.06
20
$52.80
$1,344.60
GIS
General Mills In
18.9
2.5

42.13
30
$39.60
$1,570.50
UL
Unilever PLC Comm
19.37
3.05

39.65
35
$43.89
$1,448.30
NSRGY
NESTLE SA REG SHR
19.14
3.2

68.69
30
$65.31
$2,088.00
GE
General Electric
18.22
2.92

23.39
65
$46.80
$1,605.50
ADP
Automatic Data Pr
24.44
2.37

61.65
25
$42.50
$1,789.50
K
Kellogg Company C
25.71
2.68

61.52
25
$43.75
$1,630.75
KO
Coca-Cola Company
21.36
2.58

38.83
40
$41.80
$1,608.80
RTN
Raytheon Company
12.73
2.78

57.04
20
$41.00
$1,513.00
RCI
Rogers Communicat
10.83
4.03

51.06
50
$81.15
$1,991.50
GPC
Genuine Parts Com
18.91
2.41

77.06
20
$40.44
$1,691.40
TSCDY
TESCO PLC SPONS A
225.73
4.06

17.98
110
$75.68
$1,881.00
APD
Air Products and
22.89
2.45

85.71
15
$39.45
$1,604.25
GSK
GlaxoSmithKline P
19.7
4.53

52.16
30
$70.35
$1,566.60
WMT
Wal-Mart Stores
15.41
2.13

79.25
20
$33.28
$1,575.00
BTI
British American
17.14
3.81

114.6
23
$95.22
$2,499.87
CHL
China Mobile Limi
10.59
4.06

55.32
25
$54.45
$1,344.25
MMM
3M Company Common
18.53
2.03

110.27
15
$36.08
$1,773.90
TUP
Tupperware Brands
18.52
1.97

80.98
15
$25.50
$1,284.90
IBM
International Bus
13.91
1.74

206.35
8
$27.20
$1,561.28
HAS
Hasbro Inc.
18.99
3.24

44.09
30
$45.60
$1,409.70
T
AT&T Inc.
27.35
4.98

34.47
30
$53.40
$1,073.10
WAG
Walgreen Co. Comm
22.37
2.05

44.25
30
$31.50
$1,529.40
AFL
AFLAC Incorporate
10.04
2.14

59.39
20
$27.20
$1,245.20
TGT
Target Corporatio
16.82
1.93

71.46
20
$27.60
$1,430.00
CSCO
Cisco Systems In
14.38
2.39

26.19
50
$31.00
$1,309.50
















$2,114.33
$68,793.40
















Average Yield
3.07%
















Yield On Cost
3.38%

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