On the last
trading day of the week, I decided to increase my current position in IBM by
doubling the number of shares to 16. IBM is now the biggest position in my
Dividend Yield Passive Income Portfolio measured by market value and on cost
basis. The total position is still 5 percent down after the repurchase but I am
still confident about the future of the tech giant.
The current
P/E of IBM amounts to 13.36 and should fall to 10.22 if earnings grow as
expected. Over the next five years, analysts predict earnings growth of
10.59 percent yearly. I believe it’s a good price for growth and IBM has as
well diversified technology product portfolio.
--------------------------------------
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
full-year estimated dividend income is now estimated at USD 2,129 bucks per
year. By the end of this year I want to boost the income to a total level of at
least USD 3,000. With remaining USD 37,252 in cash, it’s a solid basis in my
view. All I need to do is to keep the current yield on cost above the 3 percent
level.
Here is the income perspective of the portfolio
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
26.3
|
3.72
|
28.90
|
50
|
$64.25
|
$1,729.50
|
||
LMT
|
Lockheed Martin C
|
13.98
|
3.45
|
92.72
|
20
|
$86.00
|
$2,480.40
|
|
INTC
|
Intel Corporation
|
12.13
|
4.01
|
21.27
|
50
|
$45.00
|
$1,125.50
|
|
MCD
|
McDonald's Corpor
|
17.95
|
3
|
87.33
|
15
|
$44.10
|
$1,464.30
|
|
WU
|
Western Union Com
|
11.59
|
2.45
|
11.95
|
100
|
$45.00
|
$1,846.00
|
|
PM
|
Philip Morris Int
|
17.36
|
3.76
|
85.42
|
20
|
$67.18
|
$1,774.00
|
|
JNJ
|
Johnson & Johnson
|
20.72
|
2.61
|
69.19
|
20
|
$48.80
|
$1,847.20
|
|
MO
|
Altria Group Inc
|
16.26
|
4.86
|
33.48
|
40
|
$69.20
|
$1,414.80
|
|
SYY
|
Sysco Corporation
|
20.27
|
3.16
|
31.65
|
40
|
$44.00
|
$1,400.40
|
|
DRI
|
Darden Restaurant
|
15.8
|
4.04
|
46.66
|
30
|
$60.00
|
$1,486.80
|
|
CA
|
CA Inc.
|
13.49
|
2.43
|
21.86
|
50
|
$37.50
|
$1,549.00
|
|
PG
|
Procter & Gamble
|
21.29
|
2.74
|
68.72
|
25
|
$56.20
|
$2,041.00
|
|
KRFT
|
Kraft Foods Group
|
18.4
|
3.55
|
44.41
|
40
|
$80.00
|
$2,250.40
|
|
MAT
|
Mattel Inc.
|
19.27
|
3.12
|
36.45
|
40
|
$53.60
|
$1,715.20
|
|
PEP
|
Pepsico Inc. Com
|
19.95
|
2.54
|
70.88
|
20
|
$43.00
|
$1,686.80
|
|
KMB
|
Kimberly-Clark Co
|
20.96
|
3.07
|
86.82
|
15
|
$45.45
|
$1,477.95
|
|
COP
|
ConocoPhillips Co
|
11.19
|
29.31
|
61.06
|
20
|
$52.80
|
$1,336.60
|
|
GIS
|
General Mills In
|
18.88
|
2.51
|
42.13
|
30
|
$39.60
|
$1,572.60
|
|
UL
|
Unilever PLC Comm
|
18.91
|
3.12
|
39.65
|
35
|
$43.89
|
$1,410.85
|
|
NSRGY
|
NESTLE SA REG SHR
|
19.4
|
3.15
|
68.69
|
30
|
$65.31
|
$2,033.40
|
|
GE
|
General Electric
|
18.01
|
2.96
|
23.39
|
65
|
$46.80
|
$1,576.25
|
|
ADP
|
Automatic Data Pr
|
25.03
|
2.35
|
61.65
|
25
|
$42.50
|
$1,811.50
|
|
K
|
Kellogg Company C
|
25.16
|
2.67
|
61.52
|
25
|
$43.75
|
$1,642.00
|
|
KO
|
Coca-Cola Company
|
21.17
|
2.6
|
38.83
|
40
|
$41.80
|
$1,606.40
|
|
RTN
|
Raytheon Company
|
13.27
|
2.67
|
57.04
|
20
|
$41.00
|
$1,539.60
|
|
RCI
|
Rogers Communicat
|
10.61
|
4.12
|
46.5
|
50
|
$81.15
|
$1,979.00
|
|
GPC
|
Genuine Parts Com
|
18.56
|
2.45
|
77.06
|
20
|
$40.44
|
$1,651.60
|
|
TSCDY
|
TESCO PLC SPONS A
|
230.4
|
3.98
|
17.08
|
110
|
$75.68
|
$1,928.30
|
|
APD
|
Air Products and
|
22.76
|
2.47
|
85.71
|
15
|
$39.45
|
$1,600.50
|
|
GSK
|
GlaxoSmithKline P
|
19.66
|
4.54
|
52.16
|
30
|
$70.35
|
$1,545.30
|
|
WMT
|
Wal-Mart Stores
|
15.22
|
2.15
|
79.25
|
20
|
$33.28
|
$1,538.00
|
|
BTI
|
British American
|
16.29
|
3.84
|
111.13
|
23
|
$95.22
|
$2,475.03
|
|
CHL
|
China Mobile Limi
|
10.62
|
4.05
|
55.32
|
25
|
$54.45
|
$1,335.50
|
|
MMM
|
3M Company Common
|
18.58
|
2.03
|
110.27
|
15
|
$36.08
|
$1,774.65
|
|
TUP
|
Tupperware Brands
|
18.42
|
1.98
|
80.98
|
15
|
$25.50
|
$1,294.80
|
|
IBM
|
International Bus
|
13.35
|
1.81
|
197.09
|
16
|
$54.40
|
$3,005.12
|
|
HAS
|
Hasbro Inc.
|
18.73
|
3.28
|
44.09
|
30
|
$45.60
|
$1,378.80
|
|
T
|
AT&T Inc.
|
27.02
|
5.04
|
34.47
|
30
|
$53.40
|
$1,044.00
|
|
WAG
|
Walgreen Co. Comm
|
21.82
|
2.1
|
44.25
|
30
|
$31.50
|
$1,488.30
|
|
AFL
|
AFLAC Incorporate
|
8.6
|
2.2
|
59.39
|
20
|
$27.20
|
$1,230.40
|
|
TGT
|
Target Corporatio
|
16.73
|
1.94
|
71.46
|
20
|
$27.60
|
$1,414.40
|
|
CSCO
|
Cisco Systems In
|
14.59
|
2.36
|
26.19
|
50
|
$31.00
|
$1,302.65
|
|
$2,129.03
|
$69,804.80
|
|||||||
Average Yield
|
3.05%
|
|||||||
Yield On Cost
|
3.34%
|
