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Verizon Communications Stake Submitted To The Dividend Yield Passive Income Portfolio

I’m continuing my strategy to buy higher yielding stocks from the telecom sector: On the latest trading day, I purchased 30 shares of the second biggest telecom carrier in the United States, Verizon. The company yields at 4.21 percent, a value that is smaller than the figure of the bigger rival AT&T which is also part of my portfolio. 

Verizon is a cheap dividend growth stock and has a forward P/E of 14.44.

I believe that telecoms in America are strong cash flow producing stocks and I think that they can deliver good cash quotes for my Dividend Yield Passive Income Portfolio over the long-run.

The total buying amount was around $1,500 bucks at a price of $50.31. For sure, investment costs are very high for telecoms and the ability to hike consumer prices is very limited due to strong regulations from the government. 

But the two biggest companies, Verizon and AT&T, can generate each up to $20 billion in free cash per year. That’s a huge number in a nation with a slow growing population.

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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With the latest dividend stock purchase of Verizon, the expected dividend income rises to $2,766 bucks per year. The current yield on cost is at 3.4 percent while the actual portfolio yield is still over 3 percent at 3.04 percent.
The portfolio generated around $9,600 in capital gains on a $100,000 investment and additional $1,600 bucks were received in dividends.

Latest Portfolio Performance (Click to enlarge)

The power of compounding dividends is a long-term play and should boost the whole portfolio value into new dimensions over the upcoming years. Let us watch how my strategy develops over the time.

As of now, the current portfolio is underperforming the major indices due to the slow purchase process and high cash values over the past year. But nobody could expect that the financial market starting to boom. In an underperforming market, my strategy would have beaten the market. 

But I don’t look at short-term aims and quick returns. My focus is to create a well-diversified asset structure that delivers a solid cash-income that doubles each ten years or so.

Here is the income perspective of the portfolio

Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
34.77
3.36
28.90
50
$64.75
$1,917.50
LMT
Lockheed Martin C
14.76
3.33
92.72
20
$92.00
$2,749.00
INTC
Intel Corporation
13.19
3.69
21.27
50
$45.00
$1,226.00
MCD
McDonald's Corpor
17.61
3.16
87.33
25
$77.00
$2,423.00
WU
Western Union Com
11.56
2.87
11.95
100
$50.00
$1,670.00
PM
Philip Morris Int
17.22
3.89
89.76
30
$105.87
$2,740.80
JNJ
Johnson & Johnson
20.95
2.7
69.19
20
$50.80
$1,887.80
MO
Altria Group Inc
14.71
4.77
33.48
40
$72.00
$1,520.00
SYY
Sysco Corporation
20.1
3.34
31.65
40
$44.80
$1,348.00
DRI
Darden Restaurant
18.71
3.99
46.66
30
$63.00
$1,605.00
CA
CA Inc.
13.96
2.29
21.86
50
$37.50
$1,642.50
PG
Procter & Gamble
21.43
2.81
68.72
25
$59.20
$2,121.00
KRFT
Kraft Foods Group
17.13
3.82
44.41
40
$80.00
$2,122.00
MAT
Mattel Inc.
19.18
3.03
36.45
40
$55.60
$1,847.20
PEP
Pepsico Inc. Com
20.28
2.56
70.88
20
$44.20
$1,720.60
KMB
Kimberly-Clark Co
22.81
2.89
86.82
15
$47.55
$1,638.90
COP
ConocoPhillips Co
11.27
3.66
61.06
20
$52.80
$1,466.00
GIS
General Mills In
19.31
2.76
42.13
30
$42.60
$1,539.30
UL
Unilever PLC Comm
18.77
3.5
39.65
35
$48.83
$1,399.30
NSRGY
NESTLE SA REG SHR
20.19
2.98
68.69
30
$65.31
$2,192.55
GE
General Electric
20.29
2.82
23.39
65
$49.40
$1,768.00
ADP
Automatic Data Pr
26.18
2.26
61.65
25
$43.50
$1,933.25
K
Kellogg Company C
24.21
2.81
61.52
25
$44.50
$1,565.25
KO
Coca-Cola Company
20.84
2.72
38.83
40
$43.80
$1,608.80
RTN
Raytheon Company
14.76
2.51
57.04
20
$43.00
$1,705.60
RCI
Rogers Communicat
12.12
3.76
46.5
50
$84.00
$2,242.00
GPC
Genuine Parts Com
18.53
2.55
77.06
20
$42.12
$1,655.00
TSCDY
TESCO PLC SPONS A
N/A
4
17.08
110
$75.79
$1,894.75
APD
Air Products and
23.21
2.55
85.71
15
$41.55
$1,658.85
GSK
GlaxoSmithKline P
20.56
4.62
52.16
30
$72.24
$1,562.40
WMT
Wal-Mart Stores
15.39
2.29
79.25
20
$36.16
$1,584.40
BTI
British American
16.64
3.84
111.13
23
$96.14
$2,515.51
CHL
China Mobile Limi
10.19
4.3
55.32
40
$89.52
$2,139.20
MMM
3M Company Common
19.94
1.92
110.27
15
$37.43
$1,947.75
TUP
Tupperware Brands
18.95
2.45
80.98
15
$33.30
$1,358.55
IBM
International Bus
12.62
2.03
193.17
20
$74.00
$3,663.80
HAS
Hasbro Inc.
24.18
2.96
44.09
30
$46.80
$1,581.90
T
AT&T Inc.
25.74
5.12
34.47
30
$54.00
$1,062.90
WAG
Walgreen Co. Comm
23.48
1.96
44.25
30
$35.40
$1,808.40
AFL
AFLAC Incorporate
10.3
1.56
59.39
20
$21.00
$1,349.60
TGT
Target Corporatio
16.07
2.26
68.69
32
$48.32
$2,140.48
CSCO
Cisco Systems In
11.49
3.04
25.12
90
$58.50
$1,938.15
DE
Deere & Company C
9.51
2.4
84.11
15
$29.85
$1,242.45
RGR
Sturm Ruger & Co
14.02
2.87
51.65
20
$42.48
$1,485.00
LO
Lorillard Inc Co
16.46
4.14
42.3
30
$65.00
$1,579.50
UNP
Union Pacific Cor
17.45
1.81
154.75
8
$22.88
$1,275.92
IDA
IDACORP Inc. Com
15.25
3.09
47.94
20
$31.40
$1,017.60
BAX
Baxter Internatio
17.12
2.78
66.38
20
$37.60
$1,373.20
MSFT
Microsoft Corpora
14.23
1.81
33.88
40
$27.60
$1,513.64
ACN
Accenture plc. Cl
15.62
2.26
77.71
20
$34.80
$1,560.40
BCE
BCE Inc. Common
14.56
3.88
44.26
25
$42.98
$1,118.75
VZ
Verizon Communica
65.46
4.13
50.31
30
$62.25
$1,509.30














$2,766.11
$91,136.75














Average Yield
3.04%














Yield On Cost
3.40%

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