I purchased
20 Raytheon (RTN) shares last Friday for my Dividend Yield Passive Income
Portfolio, a 100k virtual funded project on October 03, 2012. The total
purchase price was $1,145.80 at a price of $54.04. Here is what the company manufactures:
Raytheon provides
electronics, mission systems integration, and other capabilities in the areas
of sensing, effects, and command, control, communications, and intelligence
systems, as well as a range of mission support services in the United States
and internationally. The company's Integrated Defense Systems segment provides
integrated air and missile defense, radar solutions, and naval combat and ship
electronic systems.
Raytheon is
the fourth largest public traded US military stock behind Lockheed Martin,
Boeing and General Dynamics. LMT is also part of my DYPI-Portfolio with a
nearly flat performance since I bought them but LMT pays a great yield of around 5 percent.
The
military supply industry is no hot investment field for investors. Everybody fears budget
cuts by the government and they will come. It’s announced that the industry sees
the largest budget decreases since the end of the Vietnam War.
Fundamentals
of RTN look good and a slow growth of 5.7 percent in earnings is still expected for
the next five years. Last week, RTN announced a dividend hike of 10 percent.
The current yield is now at 3.86 percent. The company is a Dividend Challenger and managed to raise dividends over nine consecutive years.
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| Earnings and Dividends of Raytheon |
The new
position will give me additional $44 in dividends over the year. The total
dividend income is now estimated at $1,300. By the end of this year, the income
should rise to a total amount of $3,000 to $4,000. With still $64,475.90 in cash
on banks should this possible. All I need to do is to buy a stock each week
with an average yield above the 3 percent mark.
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| Dividend Yield Passive Income Portfolio (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
There are
still some great shares out there with an acceptable dividend yield but my targets getting rare because of the stronger growing stock market. Investors push prices and yields
come down as a result.
Yet, it was still possible to exceed the magic 3 percent mark. My current yield on cost is at
3.64 percent but the portfolio yield is constantly sinking because of the capital gains the portfolio produce. Since the date of funding, stockholdings gained
7.73 percent or $2,764.45 in total.
The
development of the stocks is in-line with the performance of the broad market
but due to the high cash amount, the total performance is only at 3.0 percent.
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| Portfolio Performance (Click to enlarge) |
Here is the income perspective of the DYPI-Portfolio:
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
12.89
|
4
|
|
28.90
|
50
|
$64.25
|
$1,612.00
|
|
|
LMT
|
Lockheed Martin C
|
10.97
|
4.69
|
|
92.72
|
20
|
$86.00
|
$1,845.20
|
|
INTC
|
Intel Corporation
|
9.88
|
4.21
|
|
21.27
|
50
|
$44.25
|
$1,066.50
|
|
MCD
|
McDonald's Corpor
|
18.38
|
2.98
|
|
87.33
|
15
|
$44.10
|
$1,489.05
|
|
WU
|
Western Union Com
|
8.57
|
3.11
|
|
11.95
|
100
|
$45.00
|
$1,464.00
|
|
PM
|
Philip Morris Int
|
17.61
|
3.6
|
|
85.42
|
20
|
$65.58
|
$1,832.40
|
|
JNJ
|
Johnson & Johnson
|
20.47
|
3.09
|
|
69.19
|
20
|
$48.80
|
$1,594.80
|
|
MO
|
Altria Group Inc
|
16.44
|
5.11
|
|
33.48
|
40
|
$69.20
|
$1,356.40
|
|
SYY
|
Sysco Corporation
|
18.92
|
3.16
|
|
31.65
|
40
|
$43.60
|
$1,396.00
|
|
DRI
|
Darden Restaurant
|
13.99
|
3.94
|
|
46.66
|
30
|
$57.90
|
$1,488.60
|
|
CA
|
CA Inc.
|
12.76
|
3.99
|
|
21.86
|
50
|
$50.00
|
$1,266.00
|
|
PG
|
Procter & Gamble
|
17.52
|
2.91
|
|
68.72
|
25
|
$56.20
|
$1,931.75
|
|
KRFT
|
Kraft Foods Group
|
18.79
|
3.91
|
|
44.41
|
40
|
$80.00
|
$2,047.60
|
|
MAT
|
Mattel Inc.
|
19.17
|
3.03
|
|
36.45
|
40
|
$51.60
|
$1,729.60
|
|
PEP
|
Pepsico Inc. Com
|
19.41
|
2.82
|
|
70.88
|
20
|
$43.00
|
$1,572.80
|
|
KMB
|
Kimberly-Clark Co
|
21.48
|
3.19
|
|
86.82
|
15
|
$45.45
|
$1,434.90
|
|
COP
|
ConocoPhillips Co
|
9.07
|
4.33
|
|
61.06
|
20
|
$52.80
|
$1,218.20
|
|
GIS
|
General Mills In
|
17.53
|
2.71
|
|
42.13
|
30
|
$38.85
|
$1,444.50
|
|
UL
|
Unilever PLC Comm
|
20.77
|
3.03
|
|
39.65
|
35
|
$43.89
|
$1,471.05
|
|
NSRGY
|
NESTLE SA REG SHR
|
20.26
|
2.92
|
|
68.69
|
30
|
$63.15
|
$2,165.40
|
|
GE
|
General Electric
|
18.03
|
3.09
|
|
23.39
|
65
|
$46.80
|
$1,519.05
|
|
ADP
|
Automatic Data Pr
|
22.23
|
2.6
|
|
61.65
|
25
|
$41.50
|
$1,602.00
|
|
K
|
Kellogg Company C
|
23.48
|
2.79
|
|
61.52
|
25
|
$43.75
|
$1,584.75
|
|
KO
|
Coca-Cola Company
|
20.34
|
2.61
|
|
38.83
|
40
|
$41.80
|
$1,601.60
|
|
RTN
|
Raytheon Company
|
10.26
|
3.52
|
|
57.04
|
20
|
$40.00
|
$1,140.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,307.47
|
$38,874.95
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.36%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.64%
|