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Sturm, Ruger & Co. Is The New Dividend Stock Holding For My Portfolio

Who don’t like weapons? Americans do. One company that produces each year weapons for hundreds of millions dollars is the defense products stock Sturm, Ruger & Co. Incorporated. I purchased last Friday 20 shares of the weapon maker.

Sturm, Ruger & Company, Inc. engages in the design, manufacture, and sale of firearms in the United States. The company offers single-shot, auto loading, bolt-action, and sporting rifles; single-action and double-action revolvers; and rim fire auto loading and center fire auto loading pistols. It also provides accessories and replacement parts for its firearms. In addition, the company provides investment castings made from steel alloys directly or through manufacturers' representatives.

The company has a current P/E of 10.97 and the forward P/E is expected at 14.76. The current dividend yield of Sturm Ruger is quiet over the High-Yield mark at 5.03 percent. That’s a good value in my view.

Strum Ruger increased Sales by a factor of 3,3 and the net income rose by a factor of 5.8. What great growth figures. Sturm Ruger managed to raise its dividends over 5 consecutive years. It’s a Dividend Challenger with no long-term debt.

Latest Portfolio Transactions (Click to enlarge)

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For readers who are 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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Portfolio Overview I (Click to enlarge)

Portfolio Overview I (Click to enlarge)

I paid $1,036 for my stake in Sturm Ruger which will give me around $50 bucks in additional dividend income per year if the latest dividend of USD 2.60 should be sustainable.

The full year dividend income is now estimated at $2,258.68. With a current yield on cost of 3.42 percent and USD 34,98.98 in cash deposits, I’m still confident to reach my aim of a USD 3k dividend income by the end of the year 2013.

All stock holdings from the Dividend Yield Passive Income Portfolio are up 6.26 percent. The whole portfolio performance is only at 5.1 percent due to the high cash amount and slow purchasing process.

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
25.77
3.83

28.90
50
$64.75
$1,685.00
LMT
Lockheed Martin C
13.88
3.6

92.72
20
$89.00
$2,520.00
INTC
Intel Corporation
12.03
4.04

21.27
50
$45.00
$1,122.00
MCD
McDonald's Corpor
17.48
3.15

87.33
15
$45.15
$1,426.95
WU
Western Union Com
11.48
2.61

11.95
100
$47.50
$1,830.00
PM
Philip Morris Int
16.36
4.09

85.42
20
$68.78
$1,707.40
JNJ
Johnson & Johnson
19.45
2.9

69.19
20
$50.80
$1,768.20
MO
Altria Group Inc
15.34
5.24

33.48
40
$70.40
$1,371.20
SYY
Sysco Corporation
19.33
3.44

31.65
40
$44.40
$1,290.00
DRI
Darden Restaurant
15.08
4.34

46.66
30
$61.50
$1,410.30
CA
CA Inc.
13.16
3.32

21.86
50
$50.00
$1,512.00
PG
Procter & Gamble
20.67
2.92

68.72
25
$58.20
$2,000.25
KRFT
Kraft Foods Group
17.36
3.79

44.41
40
$80.00
$2,112.80
MAT
Mattel Inc.
18.71
3.21

36.45
40
$53.60
$1,669.20
PEP
Pepsico Inc. Com
18.67
2.75

70.88
20
$43.60
$1,597.00
KMB
Kimberly-Clark Co
20.33
3.24

86.82
15
$46.50
$1,438.35
COP
ConocoPhillips Co
11.03
4.04

61.06
20
$52.80
$1,331.00
GIS
General Mills In
17.67
2.78

42.13
30
$41.10
$1,494.60
UL
Unilever PLC Comm
18.57
3.41

39.65
35
$47.01
$1,391.25
NSRGY
NESTLE SA REG SHR
18.61
3.23

68.69
30
$65.31
$2,025.11
GE
General Electric
17.6
3.11

23.39
65
$48.10
$1,545.70
ADP
Automatic Data Pr
25.1
2.35

61.65
25
$42.50
$1,807.00
K
Kellogg Company C
23.92
2.82

61.52
25
$44.00
$1,568.25
KO
Coca-Cola Company
20.17
2.79

38.83
40
$42.80
$1,540.80
RTN
Raytheon Company
13.24
2.74

57.04
20
$42.00
$1,553.00
RCI
Rogers Communicat
10.45
4.29

46.5
50
$83.30
$1,964.00
GPC
Genuine Parts Com
17.87
2.6

77.06
20
$41.28
$1,588.40
TSCDY
TESCO PLC SPONS A
229.47
4

17.08
110
$75.68
$1,933.80
APD
Air Products and
21.98
2.62

85.71
15
$40.50
$1,560.00
GSK
GlaxoSmithKline P
19.81
4.56

52.16
30
$71.13
$1,565.70
WMT
Wal-Mart Stores
14.3
2.46

79.25
20
$36.16
$1,468.80
BTI
British American
15.9
4.02

111.13
23
$96.14
$2,410.86
CHL
China Mobile Limi
10.49
4.11

55.32
25
$54.95
$1,342.00
MMM
3M Company Common
17.95
2.18

110.27
15
$37.43
$1,716.00
TUP
Tupperware Brands
17.95
2.34

80.98
15
$29.40
$1,268.70
IBM
International Bus
13.15
1.94

197.09
16
$57.60
$2,966.72
HAS
Hasbro Inc.
18.3
3.36

44.09
30
$45.60
$1,383.30
T
AT&T Inc.
25.9
5.29

34.47
30
$53.70
$1,028.70
WAG
Walgreen Co. Comm
21.26
2.35

44.25
30
$34.20
$1,463.70
AFL
AFLAC Incorporate
8.33
2.34

59.39
20
$28.00
$1,196.60
TGT
Target Corporatio
15.09
2.35

71.46
20
$30.20
$1,287.00
CSCO
Cisco Systems In
12.91
2.58

26.19
50
$31.00
$1,193.00
DE
Deere & Company C
9.55
2.33

84.11
15
$29.10
$1,252.50
RGR
Sturm Ruger & Co
10.91
5.03

51.65
20
$38.52
$1,033.00
















$2,258.68
$70,340.14
















Average Yield
3.21%
















Yield On Cost
3.42%

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