9/08/2013

2 Stock Buys For My Passive Income Portfolio: Cisco Systems And Target

The small sell-off on the market hit me a bit with my assets and I would like to increase two positions now for a very small amount.

First, I purchased Cisco Systems Shares at $23.55. I bought 40 shares which resulted in a total buying amount of $942 dollar. The stake war down around 10 percent and is now accounted with a book loss of 6.28 percent. I believe that the company is still healthy and should benefit from the growing web traffic.

The second purchase was the discount retailer Target. The position was down 11.74 percent and I decided to raise the stake by 60 percent. I bought 12 shares at $63.29. The total purchase amount was around $759. The average position is now down 7.89 percent.

Portfolio Overview I (Click to enlarge)

Portfolio Overview II (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

I think both companies are great dividend growth stocks with a solid dividend in a low interest environment. The yield is around 2.7/2.8 percent and has additional potential to grow. Let’s look how they will develop in the future.

--------------------------------------
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.
--------------------------------------

The full year estimated dividend income is now at $2,374. With still $32,000 in cash on the account, it’s still possible to reach my goal of $3,000 dividend income by the end of this year.

Portfolio Performance (Click to enlarge)
The portfolio holdings are up 5.33 percent since the date of funding. Due to the high cash amount and slow purchasing process, the full portfolio is only up 4.59 percent, a clear underperformance to the market. My strategy should perform better on rainy days, days we haven’t had during the past years. However, the strategy is not to make fast money on the market. I want to show you how you can build a portfolio with solid dividend growth stocks by eliminating the big risks and getting solid dividend cash payments per year. It’s a long-term strategy.


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
$1,697.00
LMT
Lockheed Martin C
13.92
3.71

92.72
20
$92.00
$2,474.60
INTC
Intel Corporation
12.21
3.98

21.27
50
$45.00
$1,133.50
MCD
McDonald's Corpor
17.51
3.22

87.33
15
$46.20
$1,443.90
WU
Western Union Com
11.38
2.63

11.95
100
$47.50
$1,806.00
PM
Philip Morris Int
16.34
4.09

85.42
20
$68.78
$1,683.80
JNJ
Johnson & Johnson
19.32
2.92

69.19
20
$50.80
$1,743.20
MO
Altria Group Inc
15.65
5.14

33.48
40
$70.40
$1,376.00
SYY
Sysco Corporation
19.22
3.46

31.65
40
$44.40
$1,281.60
DRI
Darden Restaurant
14.95
4.37

46.66
30
$61.50
$1,423.50
CA
CA Inc.
12.86
3.4

21.86
50
$50.00
$1,480.00
PG
Procter & Gamble
19.98
3.02

68.72
25
$58.20
$1,928.75
KRFT
Kraft Foods Group
17.31
3.76

44.41
40
$80.00
$2,128.40
MAT
Mattel Inc.
18.45
3.26

36.45
40
$53.60
$1,649.20
PEP
Pepsico Inc. Com
18.63
2.79

70.88
20
$44.20
$1,585.20
KMB
Kimberly-Clark Co
19.62
3.44

86.82
15
$47.55
$1,395.90
COP
ConocoPhillips Co
11.3
3.94

61.06
20
$52.80
$1,364.00
GIS
General Mills In
17.6
2.79

42.13
30
$41.10
$1,475.70
UL
Unilever PLC Comm
17.93
3.53

39.65
35
$47.01
$1,340.15
NSRGY
NESTLE SA REG SHR
17.88
3.36

68.69
30
$65.31
$1,957.80
GE
General Electric
17.14
3.2

23.39
65
$48.10
$1,505.40
ADP
Automatic Data Pr
25.07
2.35

61.65
25
$42.50
$1,828.25
K
Kellogg Company C
23.15
2.95

61.52
25
$44.50
$1,505.75
KO
Coca-Cola Company
20.14
2.8

38.83
40
$42.80
$1,534.00
RTN
Raytheon Company
13.09
2.77

57.04
20
$42.00
$1,512.20
RCI
Rogers Communicat
11.17
4.02

46.5
50
$83.30
$2,067.00
GPC
Genuine Parts Com
17.64
2.69

77.06
20
$42.12
$1,573.20
TSCDY
TESCO PLC SPONS A
230
3.99

17.08
110
$75.68
$1,903.00
APD
Air Products and
22.16
2.6

85.71
15
$40.50
$1,544.85
GSK
GlaxoSmithKline P
19.57
4.61

52.16
30
$71.13
$1,550.10
WMT
Wal-Mart Stores
14.15
2.49

79.25
20
$36.16
$1,451.80
BTI
British American
15.54
4.11

111.13
23
$96.14
$2,366.24
CHL
China Mobile Limi
10.82
4.05

55.32
25
$55.95
$1,394.50
MMM
3M Company Common
17.98
2.17

110.27
15
$37.43
$1,725.60
TUP
Tupperware Brands
17.63
2.38

80.98
15
$29.40
$1,232.40
IBM
International Bus
13.07
1.95

197.09
16
$57.60
$2,928.48
HAS
Hasbro Inc.
19.23
3.2

44.09
30
$45.60
$1,439.70
T
AT&T Inc.
25.53
5.37

34.47
30
$53.70
$1,002.30
WAG
Walgreen Co. Comm
21.96
2.27

44.25
30
$34.20
$1,483.80
AFL
AFLAC Incorporate
8.19
2.38

59.39
20
$28.00
$1,167.60
TGT
Target Corporatio
15.3
2.38

68.69
32
$48.32
$2,025.28
CSCO
Cisco Systems In
12.74
2.62

25.12
90
$55.80
$2,119.50
DE
Deere & Company C
9.47
2.35

84.11
15
$29.10
$1,239.15
RGR
Sturm Ruger & Co
11.64
3.5

51.65
20
$38.52
$1,080.60
LO
Lorillard Inc Co
13.49
5

42.3
30
$65.00
$1,320.90
















$2,374.64
$72,869.80
















Average Yield
3.26%
















Yield On Cost
3.44%

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.