10/13/2013

Technology Consulting Stock Accenture Is My Next Dividend Pick

I order to fulfill my own goal of a $3,000 dividend income by the end of the year, I purchased 20 shares of the information technology stock and IT consulting company Accenture.

Accenture pays a 2.56 percent dividend and is valuated with a current P/E of 14.93. Earnings are expected to grow by 12 percent yearly for the next five years. I think that are good ratios and the pick is a wise alternative to my current IBM stake.

Accenture also have no debt but compared to IBM, the company is less diversified but also globally positioned. More salt for the Dividend Yield Passive Income Portfolio.

Earnings and Dividends of Accenture

The trade resulted in investing costs of $1,459.20 and will generate around $35 annual dividend income.

Latest Portfolio Transactions (Click to enlarge)

Latest Portfolio I (Click to enlarge)

Latest Portfolio II (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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Over the full year, the expected dividend income amounts to $2,562. With around $26,000 in deposited cash, it’s still possible to reach the $3,000 by the end of this year. The second notice is that I need to speed-up my purchase amounts.

Portfolio Performance (Click to enlarge)

The portfolio holdings are up 7.15 percent since the date of funding and purchase. Due to the high cash values in the portfolio (more than half of the capital was not invested in average), the overall performance is only 6.69 percent. Compared to the other major indices it is a clear underperformance but in line with my strategy to purchase slowly stocks. In times of down-going markets, the strategy would create better results.

The major aim is not to make quick money on the market with hot stocks like Tesla and Facebook. The strategy is to build a passive income portfolio which should double the dividend output each ten years from alone.


Here is the income perspective of the portfolio


Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
26.34
3.75
28.90
50
$64.75
$1,735.00
LMT
Lockheed Martin C
14.21
3.63
92.72
20
$92.00
$2,523.40
INTC
Intel Corporation
12.48
3.9
21.27
50
$45.00
$1,162.75
MCD
McDonald's Corpor
17.29
3.26
87.33
15
$46.20
$1,421.10
WU
Western Union Com
11.6
2.72
11.95
100
$50.00
$1,841.00
PM
Philip Morris Int
16.74
4.1
85.42
20
$70.58
$1,700.60
JNJ
Johnson & Johnson
19.49
2.89
69.19
20
$50.80
$1,789.00
MO
Altria Group Inc
16.22
5.07
33.48
40
$72.00
$1,421.60
SYY
Sysco Corporation
19.34
3.47
31.65
40
$44.80
$1,288.80
DRI
Darden Restaurant
17.68
4.22
46.66
30
$63.00
$1,515.00
CA
CA Inc.
12.78
3.42
21.86
50
$50.00
$1,476.00
PG
Procter & Gamble
20.18
2.99
68.72
25
$58.20
$1,962.00
KRFT
Kraft Foods Group
17.21
3.85
44.41
40
$80.00
$2,093.60
MAT
Mattel Inc.
18.5
3.37
36.45
40
$55.60
$1,670.00
PEP
Pepsico Inc. Com
19.01
2.74
70.88
20
$44.20
$1,616.60
KMB
Kimberly-Clark Co
20.4
3.3
86.82
15
$47.55
$1,454.25
COP
ConocoPhillips Co
11.86
3.8
61.06
20
$52.80
$1,434.20
GIS
General Mills In
18.15
2.93
42.13
30
$42.60
$1,450.50
UL
Unilever PLC Comm
17.87
3.54
39.65
35
$47.01
$1,337.35
NSRGY
NESTLE SA REG SHR
18.71
3.21
68.69
30
$65.31
$2,044.80
GE
General Electric
17.95
3.13
23.39
65
$49.40
$1,586.00
ADP
Automatic Data Pr
24.88
2.42
61.65
25
$43.50
$1,812.75
K
Kellogg Company C
23.24
2.93
61.52
25
$44.50
$1,519.00
KO
Coca-Cola Company
19.89
2.9
38.83
40
$43.80
$1,510.80
RTN
Raytheon Company
13.17
2.82
57.04
20
$43.00
$1,524.60
RCI
Rogers Communicat
11.82
3.83
46.5
50
$84.00
$2,204.50
GPC
Genuine Parts Com
18.14
2.61
77.06
20
$42.12
$1,612.20
TSCDY
TESCO PLC SPONS A
N/A
3.99
17.08
110
$75.79
$1,904.10
APD
Air Products and
23.01
2.57
85.71
15
$41.55
$1,630.80
GSK
GlaxoSmithKline P
18.91
4.77
52.16
30
$71.13
$1,494.00
WMT
Wal-Mart Stores
14.56
2.42
79.25
20
$36.16
$1,496.40
BTI
British American
15.9
4.02
111.13
23
$96.14
$2,379.35
CHL
China Mobile Limi
10.76
4.07
55.32
25
$55.95
$1,381.25
MMM
3M Company Common
18.68
2.09
110.27
15
$37.43
$1,810.80
TUP
Tupperware Brands
18.61
2.56
80.98
15
$33.30
$1,320.90
IBM
International Bus
13.12
1.95
197.09
16
$57.60
$2,978.56
HAS
Hasbro Inc.
18.72
3.28
44.09
30
$45.60
$1,401.60
T
AT&T Inc.
26.15
5.27
34.47
30
$54.00
$1,026.00
WAG
Walgreen Co. Comm
21.88
2.04
44.25
30
$34.20
$1,678.80
AFL
AFLAC Incorporate
8.84
2.2
59.39
20
$28.00
$1,289.60
TGT
Target Corporatio
15.29
2.38
68.69
32
$48.32
$2,022.72
CSCO
Cisco Systems In
12.37
2.82
25.12
90
$58.50
$2,095.20
DE
Deere & Company C
9.52
2.4
84.11
15
$29.85
$1,234.65
RGR
Sturm Ruger & Co
14.09
2.89
51.65
20
$38.52
$1,299.40
LO
Lorillard Inc Co
14.34
4.71
42.3
30
$65.00
$1,383.30
UNP
Union Pacific Cor
17.89
1.82
154.75
8
$22.88
$1,258.96
IDA
IDACORP Inc. Com
13.24
3.07
47.94
20
$30.40
$1,002.40
BAX
Baxter Internatio
16.46
2.85
66.38
20
$37.60
$1,320.00
MSFT
Microsoft Corpora
13.09
2.73
33.88
40
$36.80
$1,365.20
ACN
Accenture plc. Cl
14.45
2.44
77.71
20
$34.80
$1,454.20














$2,562.23
$80,935.59














Average Yield
3.17%














Yield On Cost
3.40%


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