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I bought CA Technologies Shares For The Dividend Yield Passive Income Portfolio


On Friday, I put 50 CA shares in my 100k funded virtual Dividend Yield Passive Income (DYPI) portfolio. Now, 11 stocks are part of the portfolio. The total return over the recent 11 weeks (dividends included) is 0.19% while $85k in cash is still available for further investments. I buy slowly stocks in order to receive an optimal price mix of the assets. I like to increase the stock holdings to a total number of 50-70 until the end of next year.

Why is CA Technologies interesting? The company has is an independent enterprise information technology management software and solutions company. CA develops and delivers software and services. The Company operates in three segments: Mainframe Solutions, Enterprise Solutions and Services. The Company addresses components of the computing environment, including people, information, processes, systems, networks, applications and databases, across hardware and software platforms and programs.

The most recent margins were around 20 percent of net profit and 30 percent on EBIT basis. CA has $2.3 billion cash at $1.46 billion total debt. The EV/EBITDA ratio is only at 5.43. This means that the company generates cash in your whole investment amount in just 5.4 years.

The current yield is at 4.6 percent and the P/E ratio of CA Technologies amounts to 11.09. The stock is no investment for people with quavering fingers because of the 1.41 beta ratio. That's the main reason why I decided to weight the stock only at 1 percent of the whole DYPI-Portfolio.

Here is the full Dividend Yield Passive Income Portfolio:

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
N/A
4.42

28.90
50
$64.00
$1,435.00
LMT
Lockheed Martin C
10.33
4.61

92.72
20
$83.00
$1,779.20
INTC
Intel Corporation
8.94
4.25

21.27
50
$43.50
$1,026.34
MCD
McDonald's Corpor
16.79
3.22

87.33
15
$43.05
$1,333.20
WU
Western Union Com
6.56
3.21

11.95
100
$42.50
$1,311.00
PM
Philip Morris Int
17.64
3.58

85.42
20
$63.20
$1,755.00
JNJ
Johnson & Johnson
23.17
3.39

69.19
20
$48.00
$1,413.80
MO
Altria Group Inc
17.33
5.02

33.48
40
$66.80
$1,326.40
SYY
Sysco Corporation
16.96
3.39

31.65
40
$43.20
$1,270.40
DRI
Darden Restaurant
12.59
4.05

46.66
30
$55.80
$1,393.80
CA
CA Inc.
11.12
4.56

21.86
50
$50.00
$1,093.00
















$454.05
$11,379.94
















Average Yield
3.99%
















Yield On Cost
3.02%