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British American Tobacco (BTI): Position Increase By 30 Percent

We’re going to year-end and I’ve some thoughts about the Dividend Yield Passive Income Portfolio in my mind.

I've planned to gain around $3k in estimated dividends by the end of 2013. This aim is nearly achieved but I also believe that the markets are more likely overpriced than the year before. 

Not enough, the sentiment is very anxious because of the FED tapering story and the high amount of margin traders on the floor.

What I believe is that it could make sense to keep the investment amounts calm. It will come better times to invest in order to make a good return over the long-run.

In order to increase current bets on losing positions, I've decided to increase shares of the British American Tobacco Stake by 30 percent.

I bought 7 additional shares and lifted the full stake to a total value of $3,070.20, the second biggest position in the whole portfolio behind IBM. The total purchase amount was only $721.

Portfolio Transactions (Click to enlarge)

Portfolio Transactions (Click to enlarge)

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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Due to the new stock purchase and dividend hikes, the current estimated portfolio income rises to $2,892 per year. It will be hard to hit the $3,000 mark by the end of the year because I have only two trades in order to satisfy my own rule to buy only one stock each week.

The strategy is long-term orientated and loses ground in market with strong up-trend forces. Within the past year, the markets were very bullish and the portfolio performance suffered a little bit.

Stocks from the portfolio are up 7.98 percent while the full portfolio performance amounts to 8.32 percent.

Portfolio Transactions (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
33.06
3.55
28.90
50
$65.00
$1,840.00
LMT
Lockheed Martin C
14.72
3.46
92.72
20
$95.60
$2,780.60
INTC
Intel Corporation
13.23
3.68
21.27
50
$45.00
$1,214.50
MCD
McDonald's Corpor
16.99
3.32
87.33
25
$78.00
$2,361.00
WU
Western Union Com
11.1
2.98
11.95
100
$50.00
$1,637.00
PM
Philip Morris Int
16.2
4.14
89.76
30
$105.87
$2,557.20
JNJ
Johnson & Johnson
20.33
2.84
69.19
20
$51.80
$1,827.00
MO
Altria Group Inc
14.51
4.84
33.48
40
$72.00
$1,484.00
SYY
Sysco Corporation
21.83
3.09
31.65
40
$44.80
$1,451.20
DRI
Darden Restaurant
18.25
4.09
46.66
30
$63.00
$1,548.90
CA
CA Inc.
13.84
3.09
21.86
50
$50.00
$1,617.00
PG
Procter & Gamble
20.91
2.88
68.72
25
$59.20
$2,059.25
KRFT
Kraft Foods Group
17.1
3.83
44.41
40
$80.00
$2,104.40
MAT
Mattel Inc.
18.96
3.18
36.45
40
$57.60
$1,814.80
PEP
Pepsico Inc. Com
19.08
2.76
70.88
20
$44.82
$1,618.60
KMB
Kimberly-Clark Co
21.59
3.12
86.82
15
$48.60
$1,558.80
COP
ConocoPhillips Co
10.63
3.89
61.06
20
$52.80
$1,388.60
GIS
General Mills In
18.57
2.86
42.13
30
$42.60
$1,489.20
UL
Unilever PLC Comm
18.46
3.56
39.65
35
$48.83
$1,369.55
NSRGY
NESTLE SA REG SHR
19.83
3.03
68.69
30
$65.31
$2,134.80
GE
General Electric
19.95
2.86
23.39
65
$49.40
$1,744.60
ADP
Automatic Data Pr
26.24
2.31
61.65
25
$44.63
$1,925.50
K
Kellogg Company C
23.19
2.97
61.52
25
$45.00
$1,512.50
KO
Coca-Cola Company
20.33
2.86
38.83
40
$44.80
$1,569.20
RTN
Raytheon Company
14.76
2.51
57.04
20
$43.00
$1,728.80
RCI
Rogers Communicat
12.13
3.78
46.5
50
$84.60
$2,218.50
GPC
Genuine Parts Com
18.18
2.65
77.06
20
$42.96
$1,622.40
TSCDY
TESCO PLC SPONS A
N/A
4.34
17.08
110
$75.79
$1,740.20
APD
Air Products and
22.95
2.58
85.71
15
$41.55
$1,615.80
GSK
GlaxoSmithKline P
20.22
4.69
52.16
30
$72.24
$1,541.10
WMT
Wal-Mart Stores
15.09
2.39
79.25
20
$37.60
$1,561.60
BTI
British American
15.7
4.07
111.13
30
$125.40
$3,070.20
CHL
China Mobile Limi
10.17
4.31
55.32
40
$89.52
$2,087.60
MMM
3M Company Common
19.45
2.01
110.27
15
$38.10
$1,896.45
TUP
Tupperware Brands
19.51
2.38
80.98
15
$33.30
$1,398.60
IBM
International Bus
12.01
2.13
193.17
20
$74.00
$3,456.00
HAS
Hasbro Inc.
23.6
2.33
44.09
30
$36.00
$1,552.80
T
AT&T Inc.
24.81
5.31
34.47
30
$54.00
$1,015.50
WAG
Walgreen Co. Comm
22.48
2.05
44.25
30
$35.40
$1,710.30
AFL
AFLAC Incorporate
10.02
2.16
59.39
20
$28.40
$1,319.20
TGT
Target Corporatio
16.83
2.51
68.69
32
$50.56
$1,995.52
CSCO
Cisco Systems In
11.15
2.49
23.98
130
$66.30
$2,631.20
DE
Deere & Company C
9.55
2.29
84.11
15
$29.85
$1,307.70
RGR
Sturm Ruger & Co
13.47
2.99
51.65
20
$42.48
$1,422.40
LO
Lorillard Inc Co
15.82
4.37
42.3
30
$66.00
$1,504.20
UNP
Union Pacific Cor
17.75
1.84
154.75
8
$23.68
$1,286.00
IDA
IDACORP Inc. Com
15.43
3.05
47.94
20
$31.40
$1,029.60
BAX
Baxter Internatio
16.85
2.89
66.38
20
$38.40
$1,325.40
MSFT
Microsoft Corpora
13.93
2.61
33.88
40
$38.80
$1,467.60
ACN
Accenture plc. Cl
15.02
2.35
77.71
20
$34.80
$1,478.80
BCE
BCE Inc. Common
14.1
3.96
44.26
25
$42.48
$1,067.50
VZ
Verizon Communica
62.67
4.31
50.31
30
$62.25
$1,435.20
CVX
Chevron Corporati
9.89
3.22
124.03
10
$39.00
$1,199.00
ORCL
Oracle Corporatio
14.44
0.71
35.2
40
$9.60
$1,329.20














$2,892.11
$92,622.57














Average Yield
3.12%














Yield On Cost
3.37%

3 comments:

  1. thinking of increasing my BAT position in the next weeks, too…you got them for a very good price

    ReplyDelete
  2. Hi Martin, I think they can fall much deeper from now, down to a P/E of 13 or even 11, who knows but that's not the approach when you follow dividend growth investing.

    ReplyDelete
    Replies
    1. yes thats possible…at the moment i look after a higher dividend yield..my last purchase was Realty Income and i bought more KMI shares before

      Delete

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