Last Friday
I put Mattel shares into the dividend yield passive income portfolio (DYPI). I
bought 40 shares of the toymaker who generates 67.72 percent of net sales in
Americans countries.
Mattel has
a market capitalization of 12.50 billion and is the dominating and leading
company within the toys and games industry. Mattel designs, manufactures, and
markets various toy products. Its products comprise fashion dolls and
accessories, vehicles and play sets, and games and puzzles.
The current
P/E ratio of the company is 15.12 and the expected price to earnings ratio
amounts to 13.11. The dividend yield has a value of 3.4%. This met my criteria
of yield and fair price. The company is also growing. Earnings are expected to
grow by 17.42% this year, 9.88% next year and finally 9.05% for the next five
years.
Mattel is
the little bit higher valuated than rival Hasbro but Mattel has lower debt
ratios than the second biggest industry player Hasbro. So I think both valuations are not far away.
The 40 shares will give us an additional dividend
income of 50 bucks per year. The full stake costs $1,458 which represents now around
1.5 percent of the full DYPI-Portfolio.
The current
portfolio yield is 3.52 percent. As of now I invested $20,440 into stocks within the
recent four month or so. The average yield of the portfolio is at 3.59%.
Since I
funded the portfolio virtually with 100,000, the whole net
worth is up 1.83% since October 2012. This is an underperformance against the
broad market but as I told earlier, it could happen because I buy slowly
stocks and if the market goes sharply up I will loose performance.
I don’t care about current market sentiments. In situations of highly
valuated markets my strategy could fail in the short-run. Not enough, I make stock picking in order to avoid expensive stock buys.
I try to
put every Friday one company into the DYPI-Portfolio. As of now I have around $80,300 of free cash for additional stock acquisitions. I plan to close the DYPI-Portfolio by the end
of the year 2013 with around 50-70 stock holdings. The estimated dividend
income should be around $3,000 – $4,000. This should be realistic in my opinion.
The
strategy is not to make fast money or to get quick rich. If you like to make
fast money by stock trading you should read other blogs, maybe something about options,
derivatives or penny stocks.
Trading of dividend stocks will not make you soon rich - I have not even reached. But I
found out that it is possible to realize a double-digit return over a long
period of time. Over the recent 10 years I have achieved this performance for
my own real trading accounts. Read more in my about page.
A 8% return
would double your net worth in around 10 years. 3% or more could be generated
by dividends alone. That's called the dividend yield ratio.
My real accounts have a current
yield of around 3%. That’s not high but I have real problems to find
high-quality stocks that are fairly priced. If you know some, please let me
know. I ever look for great investment opportunities and share my ideas with
all my readers on the internet.
Not Enough,
I have yields on cost of 5%-7%. When I bought the stocks they paid only 3% in dividends
but my target investments increased the dividends payments very soon over the
upcoming years and now I have a yearly return which is twice as high the amount
when I bought the stock.
Do you own
Mattel shares? What do you think about the company? Would you buy them now? Please
let me know and leave a comment in the box below.
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
N/A
|
4.37
|
|
28.90
|
50
|
$64.00
|
$1,471.00
|
|
|
LMT
|
Lockheed Martin C
|
10.74
|
4.44
|
|
92.72
|
20
|
$83.00
|
$1,878.00
|
|
INTC
|
Intel Corporation
|
9.3
|
4.08
|
|
21.27
|
50
|
$43.50
|
$1,058.00
|
|
MCD
|
McDonald's Corpor
|
17.07
|
3.17
|
|
87.33
|
15
|
$43.05
|
$1,347.73
|
|
WU
|
Western Union Com
|
6.7
|
3.14
|
|
11.95
|
100
|
$42.50
|
$1,402.00
|
|
PM
|
Philip Morris Int
|
17.17
|
3.82
|
|
85.42
|
20
|
$65.58
|
$1,730.40
|
|
JNJ
|
Johnson & Johnson
|
23.17
|
3.39
|
|
69.19
|
20
|
$48.00
|
$1,431.00
|
|
MO
|
Altria Group Inc
|
16.97
|
5.22
|
|
33.48
|
40
|
$68.00
|
$1,301.60
|
|
SYY
|
Sysco Corporation
|
16.89
|
3.43
|
|
31.65
|
40
|
$43.60
|
$1,274.00
|
|
DRI
|
Darden Restaurant
|
12.81
|
3.19
|
|
46.66
|
30
|
$42.90
|
$1,393.80
|
|
CA
|
CA Inc.
|
11.49
|
4.42
|
|
21.86
|
50
|
$50.00
|
$1,152.50
|
|
PG
|
Procter & Gamble
|
19.21
|
3.21
|
|
68.72
|
25
|
$55.28
|
$1,727.25
|
|
KRFT
|
Kraft Foods Group
|
13.91
|
1.1
|
|
44.41
|
40
|
$20.00
|
$1,814.80
|
|
MAT
|
Mattel Inc.
|
15.23
|
3.38
|
|
36.45
|
40
|
$49.60
|
$1,458.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$719.01
|
$20,440.08
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.52%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.59%
|