12/21/2013

Xcel Energy (XEL): An Electric Utility Stock Added To The Passive Income Portfolio

I’ve only two trades to hit the $3,000 expected dividend income by the end of this year. On the last trading day of the week, I decided to buy a new stake from the utility sector. It was the electric utility stock Xcel Energy. I was impressed about the solid earnings and dividend growth in the past. For sure the debt ratios are not impressive but for a utility company almost solid.

I purchased 50 shares at $28.21 which resulted in $1,410.50 total investment cost. The stake should increase the current portfolio income by $55 bucks per year to a total estimated amount of $2,934.19. That’s very close to my minimum target of $3,000.

Earnings and Dividends of Xcel Energy

XEL has a low forward P/E of 14.17 and yields at 3.97 percent. That’s a good number in my view because earnings are expected to grow by 6.70 percent for the next five years.

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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Stockholdings of the Dividend Yield Passive Income Portfolio are up 9.99 on average. Due to the high cash amounts over the recent year, the total performance is only at 10.21 percent. The major indices increased by 20 to 35 percent.

Latest Portfolio Performance (Click to enlarge)

For sure, the portfolio did not beat the market, but was not really invested. The major goal is also not to make quick money. The aim is to create a stable dividend income that doubles each ten years or less.

With remaining cash of $14,677, it’s still possible to boost the current income by $500 bucks but I plan to hold a significant amount of cash in order to be liquid when the markets are losing ground. Only in falling markets raises the possibility to get cheap long-term bets.


Here is the income perspective of the portfolio

Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
33.69
3.48
28.90
50
$65.00
$1,884.50
LMT
Lockheed Martin C
15.26
3.34
92.72
20
$95.60
$2,884.20
INTC
Intel Corporation
13.6
3.58
21.27
50
$45.00
$1,252.75
MCD
McDonald's Corpor
17.17
3.28
87.33
25
$78.00
$2,412.75
WU
Western Union Com
11.18
2.96
11.95
100
$50.00
$1,701.00
PM
Philip Morris Int
16.23
4.08
89.76
30
$104.70
$2,565.60
JNJ
Johnson & Johnson
20.51
2.82
69.19
20
$51.80
$1,841.80
MO
Altria Group Inc
14.91
3.56
33.48
40
$54.40
$1,542.80
SYY
Sysco Corporation
21.84
3.09
31.65
40
$44.80
$1,458.00
DRI
Darden Restaurant
18.12
4.12
46.66
30
$63.00
$1,532.70
CA
CA Inc.
14.05
3.04
21.86
50
$50.00
$1,646.50
PG
Procter & Gamble
20.81
2.89
68.72
25
$59.20
$2,046.00
KRFT
Kraft Foods Group
17.18
3.81
44.41
40
$80.00
$2,160.00
MAT
Mattel Inc.
18.86
3.2
36.45
40
$57.60
$1,820.80
PEP
Pepsico Inc. Com
19.17
2.74
70.88
20
$44.82
$1,636.20
KMB
Kimberly-Clark Co
21.71
3.1
86.82
15
$48.60
$1,577.70
COP
ConocoPhillips Co
10.57
3.91
61.06
20
$52.80
$1,397.60
GIS
General Mills In
18.49
2.88
42.13
30
$42.60
$1,479.00
UL
Unilever PLC Comm
18.66
3.52
39.65
35
$48.83
$1,396.85
NSRGY
NESTLE SA REG SHR
19.77
3.04
68.69
30
$65.31
$2,171.40
GE
General Electric
20.54
2.89
23.39
65
$51.35
$1,778.40
ADP
Automatic Data Pr
27.02
2.25
61.65
25
$44.63
$1,999.25
K
Kellogg Company C
23.17
2.97
61.52
25
$45.00
$1,513.00
KO
Coca-Cola Company
20.66
2.81
38.83
40
$44.80
$1,601.60
RTN
Raytheon Company
15.24
2.43
57.04
20
$43.00
$1,767.80
RCI
Rogers Communicat
11.78
3.89
46.5
50
$84.60
$2,199.00
GPC
Genuine Parts Com
18.3
2.63
77.06
20
$42.96
$1,635.40
TSCDY
TESCO PLC SPONS A
N/A
4.31
17.08
110
$75.79
$1,805.10
APD
Air Products and
23.69
2.5
85.71
15
$41.55
$1,669.50
GSK
GlaxoSmithKline P
20.34
4.67
52.16
30
$72.24
$1,541.40
WMT
Wal-Mart Stores
14.85
2.43
79.25
20
$37.60
$1,548.60
BTI
British American
15.94
4.01
111.13
30
$125.40
$3,125.40
CHL
China Mobile Limi
10.16
4.32
55.32
40
$89.52
$2,065.20
MMM
3M Company Common
20.96
1.86
110.27
15
$38.10
$2,050.80
TUP
Tupperware Brands
19.84
2.61
80.98
15
$37.20
$1,429.35
IBM
International Bus
12.48
2.05
193.17
20
$74.00
$3,600.40
HAS
Hasbro Inc.
23.97
2.3
44.09
30
$36.00
$1,574.70
T
AT&T Inc.
25.22
5.22
34.47
30
$54.00
$1,029.00
WAG
Walgreen Co. Comm
22.24
2.07
44.25
30
$35.40
$1,771.20
AFL
AFLAC Incorporate
10.08
2.15
59.39
20
$28.40
$1,313.00
TGT
Target Corporatio
16.64
2.54
68.69
32
$50.56
$1,999.68
CSCO
Cisco Systems In
11.46
2.42
23.98
130
$66.30
$2,746.90
DE
Deere & Company C
9.84
2.23
84.11
15
$29.85
$1,351.20
RGR
Sturm Ruger & Co
13.64
2.95
51.65
20
$42.48
$1,457.80
LO
Lorillard Inc Co
15.64
4.42
42.3
30
$66.00
$1,497.00
UNP
Union Pacific Cor
18.1
1.8
154.75
8
$23.68
$1,308.80
IDA
IDACORP Inc. Com
15.86
2.97
47.94
20
$31.40
$1,054.20
BAX
Baxter Internatio
16.98
2.86
66.38
20
$38.40
$1,367.80
MSFT
Microsoft Corpora
13.57
2.68
33.88
40
$38.80
$1,472.00
ACN
Accenture plc. Cl
16.13
2.19
77.71
20
$34.80
$1,611.00
BCE
BCE Inc. Common
14.02
3.98
44.26
25
$42.48
$1,066.50
VZ
Verizon Communica
63.06
4.28
50.31
30
$62.25
$1,442.40
CVX
Chevron Corporati
10.08
3.17
124.03
10
$39.00
$1,227.80
ORCL
Oracle Corporatio
15.73
0.66
35.2
40
$9.60
$1,454.80
XEL
Xcel Energy Inc.
14.87
3.91
28.21
50
$55.00
$1,410.50














$2,934.19
$95,894.63














Average Yield
3.06%














Yield On Cost
3.37%

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