After the
recent buys of Unilever and Nestlé, I want to force the industrial sector in my Dividend Yield Passive Income Portfolio (DYPI). One big player within the sector is
General Electric (GE).
General
Electric Company operates as a technology and financial services company
worldwide. The company's Energy Infrastructure segment offers wind turbines;
gas and steam turbines and generators; integrated gasification combined cycle
systems; aircraft engine derivatives; nuclear reactors, fuel, and support
services; oil and gas extraction and mining motors and control systems;
aftermarket services; water treatment solutions; power conversion
infrastructure technology and services; and integrated electrical equipment and
systems.
 |
| Dividends and Earnings Of General Electric (GE) |
GE is a
diversified machinery stock with $245 billion market capitalization and sales
of $147 billion. The current P/E ratio amounts to 16.83 and the dividend yield
is at 3.25 percent. Earnings are expected to grow for the mid-term by a
double-digit rate. The forward P/E is 12.71.
I bought 65
shares for a price of 23.39. The total purchase amount was $1,525.35 and will
give me around $50 per year in additional dividends. The total portfolio income is now forecasted
at $1,131.18 per year.
The average portfolio yield is 3.56 percent and the yield
on cost (yield when I bought the stocks) amounts to 3.75 percent). The
yield ratio declined because of the small capital gain of 4.87 percent.
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| Dividend Yield Portfolio Overview (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
The virtual portfolio has now 21 stock holdings. Combined they have a current market value of $31,428.4. I
purchased all stocks for a total cost of $29,968.25. Stocks of the DYPI-Portfolio are
up 4.87 since the date of funding – October 04, 2012.
Only 30
percent of the 100k funded asset vehicle is currently invested. Roughly 70
percent or $70,177.80 in cash is still available for further stock
acquisitions. With this money, I plan to increase the total number of stocks to
50-70 by the end of this year. With this in mind, the whole dividend income
should grow to $3,000 to $4,000 per year. Over the next decade, this amount
should double.
The total portfolio
performance is 1.61 percent of which 1.56 percent was generated this year.
 |
| Dividend Yield Passive Income Portfolio Performance (Click to enlarge) |
GE is a
high debt loaded company. The total long-term loans amounted to $414 billion as of
Q4/2012 and cash of $125.7 billion was accounted. The company has also a strong
cash flow of $33 billion and an EBITDA in a range of $18 billion. So the
EV/EBITDA ratio is around 17 - that's a damn high value. But capital business works different. In times of rising financial costs or financial crises,
the business model could be hurt.
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
11.95
|
4.31
|
|
28.90
|
50
|
$64.25
|
$1,496.00
|
|
|
LMT
|
Lockheed Martin C
|
10.47
|
4.74
|
|
92.72
|
20
|
$83.00
|
$1,762.40
|
|
INTC
|
Intel Corporation
|
9.51
|
4.37
|
|
21.27
|
50
|
$44.25
|
$1,021.00
|
|
MCD
|
McDonald's Corpor
|
17.57
|
3.05
|
|
87.33
|
15
|
$43.05
|
$1,428.75
|
|
WU
|
Western Union Com
|
8.22
|
3.06
|
|
11.95
|
100
|
$42.50
|
$1,402.00
|
|
PM
|
Philip Morris Int
|
18.01
|
3.52
|
|
85.42
|
20
|
$65.58
|
$1,868.40
|
|
JNJ
|
Johnson & Johnson
|
19.76
|
3.2
|
|
69.19
|
20
|
$48.80
|
$1,525.00
|
|
MO
|
Altria Group Inc
|
17.1
|
4.83
|
|
33.48
|
40
|
$68.00
|
$1,412.80
|
|
SYY
|
Sysco Corporation
|
17.95
|
3.34
|
|
31.65
|
40
|
$43.60
|
$1,310.00
|
|
DRI
|
Darden Restaurant
|
12.78
|
4.31
|
|
46.66
|
30
|
$57.90
|
$1,386.90
|
|
CA
|
CA Inc.
|
12.41
|
4.1
|
|
21.86
|
50
|
$50.00
|
$1,228.00
|
|
PG
|
Procter & Gamble
|
17.49
|
2.92
|
|
68.72
|
25
|
$56.20
|
$1,924.75
|
|
KRFT
|
Kraft Foods Group
|
17.04
|
4.21
|
|
44.41
|
40
|
$80.00
|
$1,898.40
|
|
MAT
|
Mattel Inc.
|
18.2
|
3.19
|
|
36.45
|
40
|
$51.60
|
$1,620.80
|
|
PEP
|
Pepsico Inc. Com
|
19.22
|
2.82
|
|
70.88
|
20
|
$42.56
|
$1,511.40
|
|
KMB
|
Kimberly-Clark Co
|
20.79
|
3.22
|
|
86.82
|
15
|
$44.40
|
$1,417.50
|
|
COP
|
ConocoPhillips Co
|
8.64
|
4.54
|
|
61.06
|
20
|
$52.80
|
$1,164.00
|
|
GIS
|
General Mills In
|
16.73
|
2.86
|
|
42.13
|
30
|
$38.85
|
$1,370.10
|
|
UL
|
Unilever PLC Comm
|
20.02
|
3.14
|
|
39.65
|
35
|
$43.89
|
$1,408.05
|
|
NSRGY
|
NESTLE SA REG SHR
|
19.34
|
3.06
|
|
68.69
|
30
|
$63.15
|
$2,079.33
|
|
GE
|
General Electric
|
18
|
3.1
|
|
23.39
|
65
|
$46.80
|
$1,520.35
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,131.18
|
$31,755.93
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.56%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.75%
|
