For readers
who a new to the matter and my dividend growth philosophy: I funded a virtual
portfolio with 100k on October 04, 2012 with the aim to build a passive income
stream that doubles each five to ten years. I plan to purchase each week one
stock holding until the money is fully invested. The total number of
constituents is expected at 50 – 70 companies and the dividend income should be
at least at $3,000 per year.
--------------------------------------
Let’s go
forward. The markets in are in a small turmoil. Bernanke announced to reduce
its quantitative easing at the beginning of autumn this year. The markets were surprised
about the fast mind changing views.
Let me
mention one thing: It’s always good to reduce the artificial influence from national
banks. It’s also good that the Fed is the first institution who sweeps off the enduring
mechanism of programs to improve the economy.
The economy
hasn’t shown bigger growth signals due the Fed stimulus. The only thing that
happens is that the risk of asset bubbles increases rapidly. In order to avoid
future price hikes in special markets, they needed to shut down their expansive
monetary policy.
Last Friday
I bought AT&T shares in an amount of around 1,000 for the Dividend Yield
Passive Income Portfolio. The leading telecom provider yields above the 5
percent mark and is one of the biggest companies in the world with a current
market capitalization of USD 190 billion.
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| Portfolio Part I (Click to enlarge) |
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| Portfolio Part II (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
AT&T provides
telecommunications services to consumers, businesses, and other providers in
the United States and internationally. The company operates in three segments:
Wireless, Wireline, and Other. The Wireless segment offers various wireless
voice and data communication services, including local wireless communications
services, long-distance services, and roaming services. It also sells various
handsets, wirelessly enabled computers, and personal computer wireless data
cards through its owned stores, agents, or third-party retail stores; and
accessories comprising carrying cases, hands-free devices, batteries, battery
chargers, and other items to consumers, as well as to agents and third-party
distributors.
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| Earnings and Dividend Payments of AT&T |
As you
might have seen, I invest more and more money into telecoms. They are not cheap
but they can give me more stability for my asset allocation. In addition,
telecoms are some of the biggest losers in my portfolio. Maybe I start to
repurchase some shares of China Mobile, Rogers or Tesco if the stock performance
worsens.
I
personally believe that telecoms have a tough fight against falling prices on
higher volumes. They are something like a utility but in my view they have also
a bigger potential than electric or gas utilities. The gird of AT&T is a
real asset and it will grow. For sure this cost a lot of money and will be a
burden of the stock price.
The new
stake will give me around $50 bucks in additional dividend income. For the full
year, the income is now expected at $1,905. The current yield is at 3.33
percent while the yield on cost amounts to 3.5 percent.
The return
of the portfolio was hit badly with the recent sell-off. Because of the high
cash amount of $46.2k it’s still manageable. As of now, the life-to-date performance
is at 3.16%. The stockholdings had a performance of 4.79 percent.
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| Portfolio Performance (Click to enlarge) |
Here is the income perspective of the portfolio:
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
15.43
|
3.97
|
|
28.90
|
50
|
$64.50
|
$1,610.00
|
|
|
LMT
|
Lockheed Martin C
|
12.13
|
4.24
|
|
92.72
|
20
|
$89.00
|
$2,101.20
|
|
INTC
|
Intel Corporation
|
12.09
|
3.66
|
|
21.27
|
50
|
$44.25
|
$1,209.75
|
|
MCD
|
McDonald's Corpor
|
17.95
|
3.11
|
|
87.33
|
15
|
$45.15
|
$1,458.45
|
|
WU
|
Western Union Com
|
9.91
|
2.88
|
|
11.95
|
100
|
$47.50
|
$1,658.00
|
|
PM
|
Philip Morris Int
|
16.66
|
3.88
|
|
85.42
|
20
|
$67.18
|
$1,749.20
|
|
JNJ
|
Johnson & Johnson
|
22.44
|
3.01
|
|
69.19
|
20
|
$49.80
|
$1,664.00
|
|
MO
|
Altria Group Inc
|
15.89
|
5.13
|
|
33.48
|
40
|
$70.40
|
$1,397.20
|
|
SYY
|
Sysco Corporation
|
19.42
|
3.29
|
|
31.65
|
40
|
$44.00
|
$1,347.20
|
|
DRI
|
Darden Restaurant
|
15.62
|
3.9
|
|
46.66
|
30
|
$60.00
|
$1,503.60
|
|
CA
|
CA Inc.
|
13.35
|
3.62
|
|
21.86
|
50
|
$50.00
|
$1,376.00
|
|
PG
|
Procter & Gamble
|
16.86
|
3.04
|
|
68.72
|
25
|
$57.20
|
$1,935.75
|
|
KRFT
|
Kraft Foods Group
|
19.69
|
3.74
|
|
44.41
|
40
|
$80.00
|
$2,138.40
|
|
MAT
|
Mattel Inc.
|
19.14
|
2.93
|
|
36.45
|
40
|
$51.60
|
$1,764.80
|
|
PEP
|
Pepsico Inc. Com
|
20.22
|
2.76
|
|
70.88
|
20
|
$43.60
|
$1,602.60
|
|
KMB
|
Kimberly-Clark Co
|
20.59
|
3.27
|
|
86.82
|
15
|
$46.50
|
$1,436.70
|
|
COP
|
ConocoPhillips Co
|
9.79
|
4.38
|
|
61.06
|
20
|
$52.80
|
$1,207.20
|
|
GIS
|
General Mills In
|
17.66
|
2.74
|
|
42.13
|
30
|
$39.60
|
$1,459.20
|
|
UL
|
Unilever PLC Comm
|
19.83
|
3.24
|
|
39.65
|
35
|
$44.91
|
$1,384.25
|
|
NSRGY
|
NESTLE SA REG SHR
|
18.57
|
3.3
|
|
68.69
|
30
|
$65.31
|
$1,957.20
|
|
GE
|
General Electric
|
17.22
|
3.18
|
|
23.39
|
65
|
$48.10
|
$1,518.40
|
|
ADP
|
Automatic Data Pr
|
23.2
|
1.85
|
|
61.65
|
25
|
$31.63
|
$1,717.00
|
|
K
|
Kellogg Company C
|
24.59
|
2.81
|
|
61.52
|
25
|
$44.00
|
$1,581.25
|
|
KO
|
Coca-Cola Company
|
20.48
|
2.73
|
|
38.83
|
40
|
$42.80
|
$1,590.40
|
|
RTN
|
Raytheon Company
|
11.59
|
3.1
|
|
57.04
|
20
|
$41.00
|
$1,322.20
|
|
RCI
|
Rogers Communicat
|
12.57
|
3.86
|
|
51.06
|
30
|
$49.98
|
$1,328.70
|
|
GPC
|
Genuine Parts Com
|
18.47
|
2.7
|
|
77.06
|
20
|
$41.28
|
$1,526.20
|
|
TSCDY
|
TESCO PLC SPONS A
|
206
|
4.59
|
|
17.98
|
70
|
$49.63
|
$1,084.30
|
|
APD
|
Air Products and
|
16.89
|
2.79
|
|
85.71
|
15
|
$39.45
|
$1,418.85
|
|
GSK
|
GlaxoSmithKline P
|
18.1
|
4.74
|
|
52.16
|
30
|
$70.38
|
$1,473.90
|
|
WMT
|
Wal-Mart Stores
|
14.39
|
2.38
|
|
79.25
|
20
|
$34.72
|
$1,470.20
|
|
BTI
|
British American
|
16.34
|
4
|
|
114.6
|
13
|
$53.82
|
$1,348.75
|
|
CHL
|
China Mobile Limi
|
9.42
|
4.6
|
|
55.32
|
25
|
$54.95
|
$1,237.50
|
|
MMM
|
3M Company Common
|
17.16
|
2.25
|
|
110.27
|
15
|
$36.75
|
$1,643.85
|
|
TUP
|
Tupperware Brands
|
22.05
|
2.57
|
|
80.98
|
15
|
$29.40
|
$1,132.95
|
|
IBM
|
International Bus
|
13.61
|
1.77
|
|
206.35
|
8
|
$28.00
|
$1,563.68
|
|
HAS
|
Hasbro Inc.
|
17.37
|
3.29
|
|
44.09
|
30
|
$43.20
|
$1,330.20
|
|
T
|
AT&T Inc.
|
26.57
|
5.18
|
|
34.47
|
30
|
$53.40
|
$1,034.10
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,905.78
|
$57,283.13
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.33%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.50%
|