The company
manufactures and markets branded consumer foods worldwide. GIS also
supplies branded and unbranded food products to the foodservice and commercial
baking industries.
General
Mills has managed to raise dividends over a period of 9 consecutive years and is
a Dividend Challenger on the edge to become a Dividend
Contender.
The full DYPI-Portfolio
has now 18 members with a total cost of $24,984.45. Stocks from the portfolio
are up 4.09 percent since October 05, 2012 – The date of funding. Total capital
gain amounts to $1,021.30.
As a result, $75,147.55 of cash is still available for further stock purchases. With this money I plan to increase the total number of stock holdings to a figure of 50-70 by the end of the year 2013.
As a result, $75,147.55 of cash is still available for further stock purchases. With this money I plan to increase the total number of stock holdings to a figure of 50-70 by the end of the year 2013.
 |
| Dividend Yield Passive Income Portfolio (Click to enlarge) |
 |
| Latest Portfolio Transactions (Click to enlarge) |
Income is king
for the asset allocation: The current estimated portfolio income after the
General Mills buy amounts to $963.04. If I complete the acquisition process,
the total dividend portfolio income should grow to a value of $3,000 – $4,000
per year.
For the
time being, it seems that it’s getting harder to find cheap higher yielding
stocks with solid growth perspectives. The market is hot and asset prices too.
It could be possible that I need to look at stocks with a yield around the 2%
mark.
The DYPI-Portfolio has a current yield of 3.66% and the yield on cost is slightly higher because of the capital gains - The amount is 3.82%. With growing stock holdings, the average yield should decrease to a value of around 3%.
The DYPI-Portfolio has a current yield of 3.66% and the yield on cost is slightly higher because of the capital gains - The amount is 3.82%. With growing stock holdings, the average yield should decrease to a value of around 3%.
Friday’s
pick of General Mills is not a cheap solution. The company has a P/E of 15.55
and forward P/E is expected at 14.53. A solid growth of 8.21% is estimated for the next
year with a slightly lower mid-term forecast for the next five years
(7.98%).
However, price
ratios are ok for a high quality dividend growth stock. The only problem could
be the low international diversification as well as the high debt amount. GIS
generates only 17 percent of its revenue abroad. That’s too low in a world were
China is the only growth solution for many companies. The market position
within the United States is solid.
 |
| Earnings and Dividends |
The current portfolio performance is good but compared to the return of the whole market, it’s
a clear underperformance because the Dow Jones is up 5.12% and the S&P 500
gained 5.61%. What the heck - There are worse happenings.
The approach
of the DYPI-Portfolio is not to show you how to get quick rich or to show how you can
make fast money by trading stocks. There are so many other tools to realize a
quick return. But those tools are also more risky and you need to take a steady
look at your prices and assets.
With a passive income portfolio, you can place your money into solid dividend growth stocks and participate on the long-term business success. It’s a strategy with an investment horizon of at least 10 years or more.
 |
| Dividend Yield Portfolio Performance (Click to enlarge) |
With a passive income portfolio, you can place your money into solid dividend growth stocks and participate on the long-term business success. It’s a strategy with an investment horizon of at least 10 years or more.
I
personally invested money into dividend stocks and other assets for more than
10 years and my annualized return is on average in a double-digit range.
Dividend growth will not make you quick rich but it could hedge your assets against inflation and provide you a good return of at least 8%. All you need is a wise investment strategy and a long investment horizon.
Here is the portfolio:
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
N/A
|
4.18
|
28.90
|
50
|
$64.00
|
$1,546.50
|
||
LMT
|
Lockheed Martin C
|
10.39
|
4.78
|
92.72
|
20
|
$83.00
|
$1,744.40
|
|
INTC
|
Intel Corporation
|
9.88
|
3.14
|
21.27
|
50
|
$33.00
|
$1,067.75
|
|
MCD
|
McDonald's Corpor
|
17.79
|
3.01
|
87.33
|
15
|
$43.05
|
$1,439.25
|
|
WU
|
Western Union Com
|
7.04
|
2.99
|
11.95
|
100
|
$42.50
|
$1,438.00
|
|
PM
|
Philip Morris Int
|
17.63
|
3.72
|
85.42
|
20
|
$65.58
|
$1,762.60
|
|
JNJ
|
Johnson & Johnson
|
19.16
|
3.25
|
69.19
|
20
|
$48.00
|
$1,483.60
|
|
MO
|
Altria Group Inc
|
16.35
|
5.05
|
33.48
|
40
|
$68.00
|
$1,368.00
|
|
SYY
|
Sysco Corporation
|
16.9
|
3.43
|
31.65
|
40
|
$43.60
|
$1,283.60
|
|
DRI
|
Darden Restaurant
|
13.29
|
4.15
|
46.66
|
30
|
$57.90
|
$1,405.20
|
|
CA
|
CA Inc.
|
12.62
|
4.03
|
21.86
|
50
|
$50.00
|
$1,251.50
|
|
PG
|
Procter & Gamble
|
17.06
|
2.99
|
68.72
|
25
|
$56.20
|
$1,898.00
|
|
KRFT
|
Kraft Foods Group
|
14.11
|
4.29
|
44.41
|
40
|
$80.00
|
$1,864.00
|
|
MAT
|
Mattel Inc.
|
15.61
|
3.3
|
36.45
|
40
|
$49.60
|
$1,530.40
|
|
PEP
|
Pepsico Inc. Com
|
19.4
|
2.92
|
70.88
|
20
|
$42.56
|
$1,453.40
|
|
KMB
|
Kimberly-Clark Co
|
20.26
|
3.31
|
86.82
|
15
|
$44.40
|
$1,350.15
|
|
COP
|
ConocoPhillips Co
|
8.63
|
4.49
|
61.06
|
20
|
$52.80
|
$1,176.40
|
|
GIS
|
General Mills In
|
15.48
|
3.09
|
42.13
|
30
|
$38.85
|
$1,263.90
|
|
$963.04
|
$26,326.65
|
|||||||
Average Yield
|
3.66%
|
|||||||
Yield On Cost
|
3.82%
|
