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.
Dividend Yield Portfolio Overview (Click to enlarge) |
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%
|