Despite the
small correction within the financial markets, the asset prices for
high-quality dividend growth stocks are still high. We need a bigger correction
to get back to normal prices but the current forces are too strength. It’s a process
of valuation adjustments – stock yields come down to bond yields.
Last
Friday, I put 15 shares of the industrial conglomerate into the Dividend Yield
Passive Income (DYPI) Portfolio. I bought the company at 110.27 which resulted
into a total purchase amount of $ 1,654.05. Below is a graph of the latest earnings and dividend developments from the recent five years.
 |
| Earnings and Dividends of MMM 3M |
3M Company is a diversified technology company with a presence in the industrial and transportation; health care; consumer and office; safety, security and protection services; display and graphics, and electro and communications businesses. 3M manages its operations in six business segments: Industrial and Transportation; Health Care; Consumer and Office; Safety, Security and Protection Services; Display and Graphics, and Electro and Communications.
MMM is also
not cheap but compared to other dividend champions lower valuated. The current
P/E amounts to 17.42 while the forward P/E is calculated at 15.02. Investors
get a yield of 2.30%.
 |
| Dividend Yield Passive Income Portfolio (Click to enlarge) |
 |
| Latest Portfolio Transactions (Click to enlarge) |
The 3M
position is the eleventh biggest position within the DYPI-Portfolio. The portfolio
has now 34 constituents and was funded on October 04, 2012. I plan to purchase each
week one stake at cost between $1 to $2k. As a result, the cash reduced from $100k
to $51. It’s a strategy of slow purchase and if the markets go further strong
up, I need to close my acquisition process and rest on cash. The current
valuation is too high to get good long-term yields.
What happened
with my current holdings? They realized a gain of 10.24 percent. Because of the
high cash amount (around 50 percent of the portfolio is still not invested),
the portfolio performance life-to-date amounts to 5.46%.
The new
stake will give me around $37 bucks per year in additional dividend income. The
full year estimated passive dividend income is now at $1,718.
Here is the income perspective of the portfolio:
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
16.66
|
3.68
|
|
28.90
|
50
|
$64.50
|
$1,761.50
|
|
|
LMT
|
Lockheed Martin C
|
12.28
|
4.05
|
|
92.72
|
20
|
$86.00
|
$2,141.20
|
|
INTC
|
Intel Corporation
|
12.02
|
3.68
|
|
21.27
|
50
|
$44.25
|
$1,196.15
|
|
MCD
|
McDonald's Corpor
|
18.74
|
2.91
|
|
87.33
|
15
|
$44.10
|
$1,504.35
|
|
WU
|
Western Union Com
|
9.9
|
2.73
|
|
11.95
|
100
|
$45.00
|
$1,645.00
|
|
PM
|
Philip Morris Int
|
18.13
|
3.56
|
|
85.42
|
20
|
$67.18
|
$1,882.40
|
|
JNJ
|
Johnson & Johnson
|
23.69
|
2.86
|
|
69.19
|
20
|
$49.80
|
$1,736.40
|
|
MO
|
Altria Group Inc
|
17.06
|
4.69
|
|
33.48
|
40
|
$69.20
|
$1,483.60
|
|
SYY
|
Sysco Corporation
|
20.09
|
3.18
|
|
31.65
|
40
|
$44.00
|
$1,392.80
|
|
DRI
|
Darden Restaurant
|
16.23
|
3.76
|
|
46.66
|
30
|
$60.00
|
$1,584.90
|
|
CA
|
CA Inc.
|
13.21
|
3.66
|
|
21.86
|
50
|
$50.00
|
$1,370.00
|
|
PG
|
Procter & Gamble
|
17.63
|
2.91
|
|
68.72
|
25
|
$57.20
|
$2,047.00
|
|
KRFT
|
Kraft Foods Group
|
21.14
|
3.51
|
|
44.41
|
40
|
$80.00
|
$2,280.40
|
|
MAT
|
Mattel Inc.
|
19.72
|
2.84
|
|
36.45
|
40
|
$51.60
|
$1,825.20
|
|
PEP
|
Pepsico Inc. Com
|
21.04
|
2.62
|
|
70.88
|
20
|
$43.00
|
$1,651.60
|
|
KMB
|
Kimberly-Clark Co
|
22.31
|
2.95
|
|
86.82
|
15
|
$45.45
|
$1,552.65
|
|
COP
|
ConocoPhillips Co
|
10.19
|
4.2
|
|
61.06
|
20
|
$52.80
|
$1,250.60
|
|
GIS
|
General Mills In
|
17.89
|
2.7
|
|
42.13
|
30
|
$39.60
|
$1,469.40
|
|
UL
|
Unilever PLC Comm
|
21.71
|
2.96
|
|
39.65
|
35
|
$44.91
|
$1,513.05
|
|
NSRGY
|
NESTLE SA REG SHR
|
19.11
|
3.2
|
|
68.69
|
30
|
$65.31
|
$2,049.00
|
|
GE
|
General Electric
|
17.53
|
3.04
|
|
23.39
|
65
|
$46.80
|
$1,529.45
|
|
ADP
|
Automatic Data Pr
|
23.79
|
2.37
|
|
61.65
|
25
|
$41.50
|
$1,746.25
|
|
K
|
Kellogg Company C
|
25.42
|
2.71
|
|
61.52
|
25
|
$43.75
|
$1,611.25
|
|
KO
|
Coca-Cola Company
|
21.94
|
2.49
|
|
38.83
|
40
|
$41.80
|
$1,689.60
|
|
RTN
|
Raytheon Company
|
11.71
|
3.07
|
|
57.04
|
20
|
$41.00
|
$1,334.60
|
|
RCI
|
Rogers Communicat
|
13.65
|
3.46
|
|
51.06
|
30
|
$48.69
|
$1,390.50
|
|
GPC
|
Genuine Parts Com
|
19.79
|
2.47
|
|
77.06
|
20
|
$40.44
|
$1,628.00
|
|
TSCDY
|
TESCO PLC SPONS A
|
N/A
|
4.05
|
|
17.98
|
70
|
$49.63
|
$1,212.40
|
|
APD
|
Air Products and
|
16.87
|
2.79
|
|
85.71
|
15
|
$39.45
|
$1,408.95
|
|
GSK
|
GlaxoSmithKline P
|
19.27
|
4.45
|
|
52.16
|
30
|
$70.38
|
$1,589.10
|
|
WMT
|
Wal-Mart Stores
|
15.04
|
2.27
|
|
79.25
|
20
|
$34.72
|
$1,546.20
|
|
BTI
|
British American
|
17.81
|
3.67
|
|
114.6
|
13
|
$53.82
|
$1,466.53
|
|
CHL
|
China Mobile Limi
|
10.5
|
1.98
|
|
55.32
|
25
|
$26.33
|
$1,330.50
|
|
mmm
|
3M Company Common
|
17.41
|
2.22
|
|
110.27
|
15
|
$36.75
|
$1,654.05
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,718.95
|
$54,474.58
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.16%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.49%
|
