The stock
suffers a little bit under recent damage claims as well as the low interest
environment. I personally don’t have an idea how big the risks of a rising interest
rate could be but I believe that they can be managed.
AFLAC is up
13.2 percent this year and gained 40 percent over the recent year. With a beta
ratio of 1.89, AFLAC seems like a very risky and volatile stock but if you look at
the fundamentals, you can see that it's not true. Also the debt to equity
ratio of 0.28 is low. The company has around USD 4.2 billion in long-term debt
at a net income of USD 2.8 billion
 |
| Earnings and Dividends From Aflac |
--------------------------------------
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.
--------------------------------------
The current
AFL stake cost me around USD 1,200 bucks and will give me approximately USD 28
dividend income for the full year. The stock is underweighted with 0.75 percent
portfolio share.
 |
| Latest Portfolio Transactions (Click to enlarge) |
 |
| Dividend Yield Passive Income Portfolio I (Click to enlarge) |
 |
| Dividend Yield Passive Income Portfolio II (Click to enlarge) |
The
full-year dividend yield income of the portfolio is now estimated at USD
2,090.33. With USD 41.436,05 in cash on
hands and bank accounts, it should be possible to hit my aim of a USD 3,000
dividend income by the end of the year. All I need to do is to buy stocks with
a yield on cost for around 3 percent.
The current
yield on cost amounts to 3.49 percent while the actual portfolio yield is a
little bit lower at 3.21 percent due to the capital gains.
All stock holdings from the Dividend Yield Passive Income Portfolio are up in average by 9.28 percent since the date of funding. The underperformance to the main indices is reasonable to the slow purchasing process. In a down-going market, my strategy would perform better than the market. But I am not interested in quick money. I want to build a long-term dividend growth portfolio which doubles each ten years from alone.
 |
| Portfolio Performance (Click to enlarge) |
All stock holdings from the Dividend Yield Passive Income Portfolio are up in average by 9.28 percent since the date of funding. The underperformance to the main indices is reasonable to the slow purchasing process. In a down-going market, my strategy would perform better than the market. But I am not interested in quick money. I want to build a long-term dividend growth portfolio which doubles each ten years from alone.
Here is the income perspective:
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
16.44
|
3.73
|
28.90
|
50
|
$64.50
|
$1,725.50
|
||
LMT
|
Lockheed Martin C
|
13.33
|
3.86
|
92.72
|
20
|
$89.00
|
$2,311.00
|
|
INTC
|
Intel Corporation
|
11.62
|
3.87
|
21.27
|
50
|
$45.00
|
$1,152.00
|
|
MCD
|
McDonald's Corpor
|
18.58
|
3
|
87.33
|
15
|
$45.15
|
$1,504.05
|
|
WU
|
Western Union Com
|
10.47
|
2.73
|
11.95
|
100
|
$47.50
|
$1,732.00
|
|
PM
|
Philip Morris Int
|
17.16
|
3.85
|
85.42
|
20
|
$68.78
|
$1,772.20
|
|
JNJ
|
Johnson & Johnson
|
24.49
|
2.76
|
69.19
|
20
|
$49.80
|
$1,844.60
|
|
MO
|
Altria Group Inc
|
17.12
|
4.76
|
33.48
|
40
|
$70.40
|
$1,486.00
|
|
SYY
|
Sysco Corporation
|
20.85
|
3.1
|
31.65
|
40
|
$44.40
|
$1,441.20
|
|
DRI
|
Darden Restaurant
|
15.97
|
4.09
|
46.66
|
30
|
$61.50
|
$1,484.70
|
|
CA
|
CA Inc.
|
14.37
|
3.36
|
21.86
|
50
|
$50.00
|
$1,482.50
|
|
PG
|
Procter & Gamble
|
17.99
|
2.9
|
68.72
|
25
|
$58.20
|
$2,034.25
|
|
KRFT
|
Kraft Foods Group
|
21.25
|
3.47
|
44.41
|
40
|
$80.00
|
$2,306.40
|
|
MAT
|
Mattel Inc.
|
18.96
|
3.07
|
36.45
|
40
|
$53.60
|
$1,695.20
|
|
PEP
|
Pepsico Inc. Com
|
22.24
|
2.51
|
70.88
|
20
|
$43.60
|
$1,728.20
|
|
KMB
|
Kimberly-Clark Co
|
21.52
|
3.13
|
86.82
|
15
|
$46.50
|
$1,492.35
|
|
COP
|
ConocoPhillips Co
|
10.6
|
4.09
|
61.06
|
20
|
$52.80
|
$1,320.00
|
|
GIS
|
General Mills In
|
18.37
|
2.67
|
42.13
|
30
|
$41.10
|
$1,550.40
|
|
UL
|
Unilever PLC Comm
|
21.06
|
3.06
|
39.65
|
35
|
$44.91
|
$1,473.50
|
|
NSRGY
|
NESTLE SA REG SHR
|
18.84
|
3.25
|
68.69
|
30
|
$65.31
|
$2,017.50
|
|
GE
|
General Electric
|
17.5
|
3.13
|
23.39
|
65
|
$48.10
|
$1,606.80
|
|
ADP
|
Automatic Data Pr
|
24.77
|
2.33
|
61.65
|
25
|
$42.50
|
$1,822.00
|
|
K
|
Kellogg Company C
|
26.18
|
2.64
|
61.52
|
25
|
$44.00
|
$1,683.00
|
|
KO
|
Coca-Cola Company
|
21.36
|
2.62
|
38.83
|
40
|
$42.80
|
$1,643.60
|
|
RTN
|
Raytheon Company
|
12.22
|
3.01
|
57.04
|
20
|
$42.00
|
$1,396.00
|
|
RCI
|
Rogers Communicat
|
11.83
|
4.1
|
51.06
|
50
|
$83.30
|
$2,030.00
|
|
GPC
|
Genuine Parts Com
|
19.88
|
2.51
|
77.06
|
20
|
$41.28
|
$1,648.00
|
|
TSCDY
|
TESCO PLC SPONS A
|
225.6
|
4.07
|
17.98
|
110
|
$75.68
|
$1,859.00
|
|
APD
|
Air Products and
|
17.35
|
2.79
|
85.71
|
15
|
$40.50
|
$1,454.85
|
|
GSK
|
GlaxoSmithKline P
|
19.17
|
4.47
|
52.16
|
30
|
$70.38
|
$1,564.50
|
|
WMT
|
Wal-Mart Stores
|
15.24
|
2.24
|
79.25
|
20
|
$34.72
|
$1,561.60
|
|
BTI
|
British American
|
16.92
|
3.86
|
114.6
|
23
|
$95.22
|
$2,448.35
|
|
CHL
|
China Mobile Limi
|
10.37
|
4.18
|
55.32
|
25
|
$54.95
|
$1,316.75
|
|
MMM
|
3M Company Common
|
18.21
|
2.12
|
110.27
|
15
|
$36.75
|
$1,742.85
|
|
TUP
|
Tupperware Brands
|
22.87
|
2.48
|
80.98
|
15
|
$29.40
|
$1,177.95
|
|
IBM
|
International Bus
|
13.65
|
1.77
|
206.35
|
8
|
$28.00
|
$1,548.32
|
|
HAS
|
Hasbro Inc.
|
18.43
|
3.18
|
44.09
|
30
|
$44.40
|
$1,361.40
|
|
T
|
AT&T Inc.
|
27.64
|
5.01
|
34.47
|
30
|
$53.70
|
$1,074.30
|
|
WAG
|
Walgreen Co. Comm
|
22.11
|
2.18
|
44.25
|
30
|
$33.00
|
$1,518.30
|
|
AFL
|
AFLAC Incorporate
|
9.37
|
2.33
|
59.39
|
20
|
$27.60
|
$1,187.80
|
|
$2,090.33
|
$65,198.92
|
|||||||
Average Yield
|
3.21%
|
|||||||
Yield On Cost
|
3.49%
|