I bought 20
shares of the discount store operator Target. The company yields at 2.41
percent and is priced with a P/E of 16.77. Due to growth, the forward P/E
should sink to 13.10. Over the next five years, earnings are expected to grow
by 11.06 percent yearly. That’s a good value and the price is fair in my view.
The stock is down 1.5 percent last week.
The full
stake cost me $1,434.20 in total and would bring me around $35 Bucks in
dividend income, based on $1.72 estimated yearly dividends. Target operates in
three segments: U.S. Retail, U.S. Credit Card and Canadian. As a component of
the U.S. Retail Segment, its online presence is designed to enable guests to
purchase products either online or by locating them in one of its stores with
the aid of online research and location tools.
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| Latest Portfolio Transactions (Click to enlarge) |
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| Dividend Yield Passive Income Portfolio I (Click to enlarge) |
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| Dividend Yield Passive Income Portfolio II (Click to enlarge) |
--------------------------------------
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.
--------------------------------------
Target is
the second biggest capital market listed company from the discount and variety
store industry, behind Costco Wholesale. COST as a USD 5 Billion bigger market
capitalization but sells more items for around USD 30 billion per year. Costco
has a smaller margin; it offers larger discounts and has a 12.5 percent gross
margin. Target’s gross margin is at 30.80.
Target is a real Dividend Champion. The company raised its dividend payments over a period of 46 consecutive years. Its dividend growth accelerated from 18.6 percent over the recent 10 years to 24.7 percent for the past 3 Years. The latest dividend hike was at 20% from 30 Cents to 36 Cents on August 13, 2012.
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| Earnings and Dividends of Target |
As of the
time of writing, the stockholdings from the portfolio gained 9.13% since the
date of funding. It’s a small underperformance compared to the broad market and
a result of the slow purchasing process. I buy only one company each week for
around 1k to 2k. In markets that are going strongly up, the strategy will
produce an underperformance. My aim is not to show how make fast profits by
trading stocks. I like to create a sustainable long-term dividend growth
portfolio. I plan to boost the current income to 3k or more by the end of the
year. Over the next ten years, this value should double to 6k or more.
 |
| Portfolio Performance (Click to enlarge) |
With still
$40,022.60 in cash, it’s a solid basis for further stock acquisitions. I’m quite
confident to realize my current goals.
Here is the income perspective of the portfolio
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
16.79
|
3.65
|
|
28.90
|
50
|
$64.50
|
$1,765.50
|
|
|
LMT
|
Lockheed Martin C
|
13.8
|
3.72
|
|
92.72
|
20
|
$89.00
|
$2,400.00
|
|
INTC
|
Intel Corporation
|
12.46
|
3.9
|
|
21.27
|
50
|
$45.00
|
$1,163.00
|
|
MCD
|
McDonald's Corpor
|
18.08
|
3.09
|
|
87.33
|
15
|
$45.15
|
$1,470.45
|
|
WU
|
Western Union Com
|
10.32
|
2.77
|
|
11.95
|
100
|
$47.50
|
$1,696.00
|
|
PM
|
Philip Morris Int
|
17.33
|
3.85
|
|
85.42
|
20
|
$68.78
|
$1,777.60
|
|
JNJ
|
Johnson & Johnson
|
20.55
|
2.69
|
|
69.19
|
20
|
$49.80
|
$1,856.60
|
|
MO
|
Altria Group Inc
|
16.62
|
4.9
|
|
33.48
|
40
|
$70.40
|
$1,436.00
|
|
SYY
|
Sysco Corporation
|
20.08
|
3.21
|
|
31.65
|
40
|
$44.40
|
$1,390.80
|
|
DRI
|
Darden Restaurant
|
15.44
|
4.24
|
|
46.66
|
30
|
$61.50
|
$1,467.90
|
|
CA
|
CA Inc.
|
14.36
|
3.36
|
|
21.86
|
50
|
$50.00
|
$1,484.00
|
|
PG
|
Procter & Gamble
|
18.02
|
2.9
|
|
68.72
|
25
|
$58.20
|
$2,009.75
|
|
KRFT
|
Kraft Foods Group
|
21.13
|
3.54
|
|
44.41
|
40
|
$80.00
|
$2,258.00
|
|
MAT
|
Mattel Inc.
|
19.03
|
3.16
|
|
36.45
|
40
|
$53.60
|
$1,710.80
|
|
PEP
|
Pepsico Inc. Com
|
21.92
|
2.55
|
|
70.88
|
20
|
$43.60
|
$1,706.20
|
|
KMB
|
Kimberly-Clark Co
|
21.42
|
3.15
|
|
86.82
|
15
|
$46.50
|
$1,475.85
|
|
COP
|
ConocoPhillips Co
|
10.67
|
4.06
|
|
61.06
|
20
|
$52.80
|
$1,314.40
|
|
GIS
|
General Mills In
|
18.43
|
2.66
|
|
42.13
|
30
|
$41.10
|
$1,545.30
|
|
UL
|
Unilever PLC Comm
|
20.68
|
3.11
|
|
39.65
|
35
|
$44.91
|
$1,419.95
|
|
NSRGY
|
NESTLE SA REG SHR
|
18.99
|
3.22
|
|
68.69
|
30
|
$65.31
|
$2,007.00
|
|
GE
|
General Electric
|
18.28
|
3.1
|
|
23.39
|
65
|
$48.10
|
$1,602.25
|
|
ADP
|
Automatic Data Pr
|
24.55
|
2.36
|
|
61.65
|
25
|
$42.50
|
$1,812.00
|
|
K
|
Kellogg Company C
|
26.31
|
2.63
|
|
61.52
|
25
|
$44.00
|
$1,674.50
|
|
KO
|
Coca-Cola Company
|
21.51
|
2.62
|
|
38.83
|
40
|
$42.80
|
$1,625.60
|
|
RTN
|
Raytheon Company
|
12.23
|
3.01
|
|
57.04
|
20
|
$42.00
|
$1,400.20
|
|
RCI
|
Rogers Communicat
|
11.74
|
4.13
|
|
51.06
|
50
|
$83.30
|
$2,015.00
|
|
GPC
|
Genuine Parts Com
|
18.45
|
2.52
|
|
77.06
|
20
|
$41.28
|
$1,642.00
|
|
TSCDY
|
TESCO PLC SPONS A
|
226.67
|
4.05
|
|
17.98
|
110
|
$75.68
|
$1,855.70
|
|
APD
|
Air Products and
|
19.19
|
2.52
|
|
85.71
|
15
|
$40.50
|
$1,561.80
|
|
GSK
|
GlaxoSmithKline P
|
18.95
|
4.52
|
|
52.16
|
30
|
$70.38
|
$1,545.00
|
|
WMT
|
Wal-Mart Stores
|
15.37
|
2.23
|
|
79.25
|
20
|
$34.72
|
$1,560.00
|
|
BTI
|
British American
|
16.77
|
3.9
|
|
114.6
|
23
|
$95.22
|
$2,443.29
|
|
CHL
|
China Mobile Limi
|
10.54
|
4.11
|
|
55.32
|
25
|
$54.95
|
$1,334.50
|
|
MMM
|
3M Company Common
|
18.38
|
2.1
|
|
110.27
|
15
|
$36.75
|
$1,753.65
|
|
TUP
|
Tupperware Brands
|
24.08
|
2.36
|
|
80.98
|
15
|
$29.40
|
$1,247.25
|
|
IBM
|
International Bus
|
14.01
|
1.77
|
|
206.35
|
8
|
$28.00
|
$1,578.80
|
|
HAS
|
Hasbro Inc.
|
18.68
|
3.14
|
|
44.09
|
30
|
$44.40
|
$1,412.40
|
|
T
|
AT&T Inc.
|
27.42
|
5.05
|
|
34.47
|
30
|
$53.70
|
$1,068.00
|
|
WAG
|
Walgreen Co. Comm
|
22.31
|
2.16
|
|
44.25
|
30
|
$33.00
|
$1,524.60
|
|
AFL
|
AFLAC Incorporate
|
9.55
|
2.28
|
|
59.39
|
20
|
$27.60
|
$1,221.80
|
|
TGT
|
Target Corporatio
|
16.88
|
2.01
|
|
71.46
|
20
|
$28.80
|
$1,429.20
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,119.13
|
$66,662.64
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.18%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.46%
|