I’m a real
lover of technology stocks from the old-tech economy. Most of the big players
of the first area from the internet boom are worth billions and started to pay
dividends recently. They still have huge potential to hike dividends and
billions of cash on their balance sheets.
I purchased
last Friday 50 shares of the networking and communication devices giant Cisco
Systems. My total purchase amount was around USD 1,300 bucks and will produce
approximately 33 bucks in dividend income at a 2.6 percent dividend yield. The
current P/E of Cisco is acceptable in my view at 14.55 and 12.41 for the next
year. Remember there are forecasts of growing earnings per share of 5 percent
for the next half decade. With a payout of 30 percent or so, it’s a great
opportunity for long-term dividend growth investors. I weighted the stock with
1.21 percent in my Dividend Yield Passive Income Portfolio.
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| Dividend Yield Passive Income Portfolio (Click to enlarge) |
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| Dividend Yield Passive Income Portfolio (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
Cisco designs,
manufactures, and sells Internet protocol (IP) based networking and other
products related to the communications and information technology industries
worldwide. It offers switching products, including fixed-configuration and
modular switches, and storage products that provide connectivity to end users,
workstations, IP phones, access points, and servers, as well as function as
aggregators on local-area networks and wide-area networks; and routers that
interconnects public and private IP networks for mobile, data, voice, and video
applications.
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The full
year dividend income of the portfolio is now estimated at USD 2,114.33. I paid
around 67k for all these 42 stockholdings combined and paid 225 bucks in total
for transaction fee. The yield on cost amounts to 3.33 percent. Due to the
capital gains of the stocks, the current portfolio yield is at 3.09 percent.
With USD
38,749.50 deposited cash on bank, it’s still easy to reach a 3k dividend income
by the end of the year if I buy each week a stock with a yield on cost of more
than 3 percent. The Cisco share does not fulfill this criterion but my average
dividend income is still high enough to keep this aims alive.
Stocks from
the income vehicle are up 10.25 percent in average since the date of funding. The
performance is an underperformance compared to the major indices like Dow Jones
or S&P 500. This is reasonable to the slow purchasing process. I buy each
week only one stake with 1-2 k. In markets with strong forces of the bulls, the
strategy will lose performance.
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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
|
16.42
|
3.72
|
|
28.90
|
50
|
$64.25
|
$1,720.50
|
|
|
LMT
|
Lockheed Martin C
|
13.7
|
3.52
|
|
92.72
|
20
|
$86.00
|
$2,475.40
|
|
INTC
|
Intel Corporation
|
12.53
|
3.88
|
|
21.27
|
50
|
$45.00
|
$1,161.00
|
|
MCD
|
McDonald's Corpor
|
18.13
|
2.97
|
|
87.33
|
15
|
$44.10
|
$1,488.00
|
|
WU
|
Western Union Com
|
10.91
|
2.48
|
|
11.95
|
100
|
$45.00
|
$1,831.00
|
|
PM
|
Philip Morris Int
|
17.43
|
3.74
|
|
85.42
|
20
|
$67.18
|
$1,791.80
|
|
JNJ
|
Johnson & Johnson
|
20.81
|
2.6
|
|
69.19
|
20
|
$48.80
|
$1,887.80
|
|
MO
|
Altria Group Inc
|
16.24
|
4.87
|
|
33.48
|
40
|
$69.20
|
$1,427.20
|
|
SYY
|
Sysco Corporation
|
20.23
|
3.16
|
|
31.65
|
40
|
$44.00
|
$1,399.20
|
|
DRI
|
Darden Restaurant
|
15.81
|
4.04
|
|
46.66
|
30
|
$60.00
|
$1,496.40
|
|
CA
|
CA Inc.
|
13.16
|
3.32
|
|
21.86
|
50
|
$50.00
|
$1,519.50
|
|
PG
|
Procter & Gamble
|
18.29
|
2.75
|
|
68.72
|
25
|
$56.20
|
$2,032.25
|
|
KRFT
|
Kraft Foods Group
|
21.23
|
3.48
|
|
44.41
|
40
|
$80.00
|
$2,300.00
|
|
MAT
|
Mattel Inc.
|
19.15
|
3.14
|
|
36.45
|
40
|
$53.60
|
$1,713.60
|
|
PEP
|
Pepsico Inc. Com
|
19.84
|
2.55
|
|
70.88
|
20
|
$43.00
|
$1,685.80
|
|
KMB
|
Kimberly-Clark Co
|
21.01
|
3.07
|
|
86.82
|
15
|
$45.45
|
$1,494.15
|
|
COP
|
ConocoPhillips Co
|
10.73
|
29.75
|
|
61.06
|
20
|
$52.80
|
$1,344.60
|
|
GIS
|
General Mills In
|
18.9
|
2.5
|
|
42.13
|
30
|
$39.60
|
$1,570.50
|
|
UL
|
Unilever PLC Comm
|
19.37
|
3.05
|
|
39.65
|
35
|
$43.89
|
$1,448.30
|
|
NSRGY
|
NESTLE SA REG SHR
|
19.14
|
3.2
|
|
68.69
|
30
|
$65.31
|
$2,088.00
|
|
GE
|
General Electric
|
18.22
|
2.92
|
|
23.39
|
65
|
$46.80
|
$1,605.50
|
|
ADP
|
Automatic Data Pr
|
24.44
|
2.37
|
|
61.65
|
25
|
$42.50
|
$1,789.50
|
|
K
|
Kellogg Company C
|
25.71
|
2.68
|
|
61.52
|
25
|
$43.75
|
$1,630.75
|
|
KO
|
Coca-Cola Company
|
21.36
|
2.58
|
|
38.83
|
40
|
$41.80
|
$1,608.80
|
|
RTN
|
Raytheon Company
|
12.73
|
2.78
|
|
57.04
|
20
|
$41.00
|
$1,513.00
|
|
RCI
|
Rogers Communicat
|
10.83
|
4.03
|
|
51.06
|
50
|
$81.15
|
$1,991.50
|
|
GPC
|
Genuine Parts Com
|
18.91
|
2.41
|
|
77.06
|
20
|
$40.44
|
$1,691.40
|
|
TSCDY
|
TESCO PLC SPONS A
|
225.73
|
4.06
|
|
17.98
|
110
|
$75.68
|
$1,881.00
|
|
APD
|
Air Products and
|
22.89
|
2.45
|
|
85.71
|
15
|
$39.45
|
$1,604.25
|
|
GSK
|
GlaxoSmithKline P
|
19.7
|
4.53
|
|
52.16
|
30
|
$70.35
|
$1,566.60
|
|
WMT
|
Wal-Mart Stores
|
15.41
|
2.13
|
|
79.25
|
20
|
$33.28
|
$1,575.00
|
|
BTI
|
British American
|
17.14
|
3.81
|
|
114.6
|
23
|
$95.22
|
$2,499.87
|
|
CHL
|
China Mobile Limi
|
10.59
|
4.06
|
|
55.32
|
25
|
$54.45
|
$1,344.25
|
|
MMM
|
3M Company Common
|
18.53
|
2.03
|
|
110.27
|
15
|
$36.08
|
$1,773.90
|
|
TUP
|
Tupperware Brands
|
18.52
|
1.97
|
|
80.98
|
15
|
$25.50
|
$1,284.90
|
|
IBM
|
International Bus
|
13.91
|
1.74
|
|
206.35
|
8
|
$27.20
|
$1,561.28
|
|
HAS
|
Hasbro Inc.
|
18.99
|
3.24
|
|
44.09
|
30
|
$45.60
|
$1,409.70
|
|
T
|
AT&T Inc.
|
27.35
|
4.98
|
|
34.47
|
30
|
$53.40
|
$1,073.10
|
|
WAG
|
Walgreen Co. Comm
|
22.37
|
2.05
|
|
44.25
|
30
|
$31.50
|
$1,529.40
|
|
AFL
|
AFLAC Incorporate
|
10.04
|
2.14
|
|
59.39
|
20
|
$27.20
|
$1,245.20
|
|
TGT
|
Target Corporatio
|
16.82
|
1.93
|
|
71.46
|
20
|
$27.60
|
$1,430.00
|
|
CSCO
|
Cisco Systems In
|
14.38
|
2.39
|
|
26.19
|
50
|
$31.00
|
$1,309.50
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,114.33
|
$68,793.40
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.07%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.38%
|
