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Lorillard: Next Stock Purchase For The Dividend Yield Passive Income Portfolio

I increased my tobacco engagement within the Dividend Yield Passive Income Portfolio. I purchased a new tobacco stock, the Lorillard. It’s the fourth company from the cigarettes industry. The others are Philip Morris, Altria, and British Tobacco.

I love the high yield of the 15 billion tobacco player. For sure, Lorillard has a higher risk because of its low diversification and is much more under pressure because of its menthol cigarettes.

The current dividend yield amounts to 5.2 percent while the forward P/E is at 12.02. I believe it’s a great compensation if we exclude the risks of the company. Growth is also forecasted. Over the next five years, earnings should grow by 12.5 percent yearly. 

Latest Portfolio Performance (Click to enlarge)

Portfolio Overview (Click to enlarge)

Portfolio Overview II (Click to enlarge)

Lorillard manufactures and sells cigarettes in the United States. The company operates through two segments, Cigarettes and Electronic Cigarettes. The Cigarettes segment manufactures and sells cigarettes. It offers 39 product offerings in various brand names, including Newport, Kent, True, Maverick, and Old Gold.

Lorillard is still a high yielding company despite the fact that stock price nearly tripled since the low in 2009. The company boosted dividends over the past six consecutive years. The three year dividend growth rate is at 17.3 percent, a very high value but debt ratios were also low during that time. Not Lorillard has over $3 billion long-term debt but also much lower outstanding shares. The debts were used for massive share repurchases.

Earnings and Dividends of Lorillard

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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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The new Lorillard stake will boost my yearly passive dividend income by additional $65. The full year dividend income is now estimated at $2,330 and should grow over $3,000 by the end of this year if I fulfill my aim to buy each week a stock with an initial yield of more than 3 percent.

The full portfolio holdings are up 4.13 percent in average. Due to the slow purchase process which is part of the strategy, the whole performance since the date of funding is only 3.69 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
25.36
3.89

28.90
50
$64.75
$1,644.00
LMT
Lockheed Martin C
13.72
3.76

92.72
20
$92.00
$2,448.40
INTC
Intel Corporation
11.92
4.08

21.27
50
$45.00
$1,099.00
MCD
McDonald's Corpor
17.37
3.25

87.33
15
$46.20
$1,415.40
WU
Western Union Com
11.28
2.66

11.95
100
$47.50
$1,753.00
PM
Philip Morris Int
16.3
4.1

85.42
20
$68.78
$1,668.80
JNJ
Johnson & Johnson
19.22
2.93

69.19
20
$50.80
$1,728.20
MO
Altria Group Inc
15.51
5.19

33.48
40
$70.40
$1,355.20
SYY
Sysco Corporation
19.13
3.47

31.65
40
$44.40
$1,280.80
DRI
Darden Restaurant
14.85
4.4

46.66
30
$61.50
$1,386.30
CA
CA Inc.
12.95
3.37

21.86
50
$50.00
$1,462.50
PG
Procter & Gamble
20.03
3.01

68.72
25
$58.20
$1,947.25
KRFT
Kraft Foods Group
17
3.86

44.41
40
$80.00
$2,070.80
MAT
Mattel Inc.
18.13
3.44

36.45
40
$55.60
$1,620.00
PEP
Pepsico Inc. Com
18.69
2.75

70.88
20
$43.60
$1,594.60
KMB
Kimberly-Clark Co
19.76
3.34

86.82
15
$46.50
$1,402.20
COP
ConocoPhillips Co
11.04
4.04

61.06
20
$52.80
$1,326.00
GIS
General Mills In
17.64
2.78

42.13
30
$41.10
$1,479.60
UL
Unilever PLC Comm
18.07
3.5

39.65
35
$47.01
$1,336.30
NSRGY
NESTLE SA REG SHR
18.01
3.34

68.69
30
$65.31
$1,963.50
GE
General Electric
17.11
3.2

23.39
65
$48.10
$1,504.10
ADP
Automatic Data Pr
24.71
2.38

61.65
25
$42.50
$1,779.00
K
Kellogg Company C
23.21
2.94

61.52
25
$44.50
$1,517.75
KO
Coca-Cola Company
20.06
2.81

38.83
40
$42.80
$1,527.20
RTN
Raytheon Company
13.07
2.77

57.04
20
$42.00
$1,508.20
RCI
Rogers Communicat
10.75
4.18

46.5
50
$83.30
$1,980.00
GPC
Genuine Parts Com
17.41
2.67

77.06
20
$41.28
$1,540.20
TSCDY
TESCO PLC SPONS A
231.4
3.96

17.08
110
$75.68
$1,903.00
APD
Air Products and
21.87
2.64

85.71
15
$40.50
$1,532.10
GSK
GlaxoSmithKline P
19.63
4.6

52.16
30
$71.13
$1,526.70
WMT
Wal-Mart Stores
14.1
2.5

79.25
20
$36.16
$1,459.60
BTI
British American
15.56
4.1

111.13
23
$96.14
$2,336.11
CHL
China Mobile Limi
10.48
4.11

55.32
25
$54.95
$1,349.25
MMM
3M Company Common
17.74
2.2

110.27
15
$37.43
$1,703.70
TUP
Tupperware Brands
17.63
2.39

80.98
15
$29.40
$1,211.55
IBM
International Bus
12.97
1.97

197.09
16
$57.60
$2,916.32
HAS
Hasbro Inc.
18.45
3.33

44.09
30
$45.60
$1,367.40
T
AT&T Inc.
25.77
5.32

34.47
30
$53.70
$1,014.90
WAG
Walgreen Co. Comm
20.81
2.4

44.25
30
$34.20
$1,442.10
AFL
AFLAC Incorporate
8.05
2.42

59.39
20
$28.00
$1,155.80
TGT
Target Corporatio
15.22
2.39

71.46
20
$30.20
$1,266.20
CSCO
Cisco Systems In
12.61
2.64

26.19
50
$31.00
$1,165.50
DE
Deere & Company C
9.62
2.44

84.11
15
$29.10
$1,254.60
RGR
Sturm Ruger & Co
11.25
3.62

51.65
20
$38.52
$1,047.40
LO
Lorillard Inc Co
13.22
5.11

42.3
30
$65.00
$1,269.00
















$2,330.23
$70,259.53

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