I increased
my tobacco engagement within the Dividend Yield Passive Income Portfolio. I
purchased a new tobacco stock, the Lorillard. It’s the fourth company from the
cigarettes industry. The others are Philip Morris, Altria, and British Tobacco.
I love the
high yield of the 15 billion tobacco player. For sure, Lorillard has a higher
risk because of its low diversification and is much more under pressure because
of its menthol cigarettes.
The current
dividend yield amounts to 5.2 percent while the forward P/E is at 12.02. I believe
it’s a great compensation if we exclude the risks of the company. Growth is
also forecasted. Over the next five years, earnings should grow by 12.5 percent
yearly.
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| Latest Portfolio Performance (Click to enlarge) |
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| Portfolio Overview (Click to enlarge) |
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| Portfolio Overview II (Click to enlarge) |
Lorillard
manufactures and sells cigarettes in the United States. The company operates
through two segments, Cigarettes and Electronic Cigarettes. The Cigarettes
segment manufactures and sells cigarettes. It offers 39 product offerings in
various brand names, including Newport, Kent, True, Maverick, and Old Gold.
Lorillard
is still a high yielding company despite the fact that stock price nearly
tripled since the low in 2009. The company boosted dividends over the past six
consecutive years. The three year dividend growth rate is at 17.3 percent, a
very high value but debt ratios were also low during that time. Not Lorillard
has over $3 billion long-term debt but also much lower outstanding shares. The debts
were used for massive share repurchases.
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| Earnings and Dividends of Lorillard |
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For readers
who are 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.
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The new Lorillard
stake will boost my yearly passive dividend income by additional $65. The full
year dividend income is now estimated at $2,330 and should grow over $3,000 by
the end of this year if I fulfill my aim to buy each week a stock with an initial
yield of more than 3 percent.
The full
portfolio holdings are up 4.13 percent in average. Due to the slow purchase
process which is part of the strategy, the whole performance since the date of
funding is only 3.69 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
|
25.36
|
3.89
|
28.90
|
50
|
$64.75
|
$1,644.00
|
||
LMT
|
Lockheed Martin C
|
13.72
|
3.76
|
92.72
|
20
|
$92.00
|
$2,448.40
|
|
INTC
|
Intel Corporation
|
11.92
|
4.08
|
21.27
|
50
|
$45.00
|
$1,099.00
|
|
MCD
|
McDonald's Corpor
|
17.37
|
3.25
|
87.33
|
15
|
$46.20
|
$1,415.40
|
|
WU
|
Western Union Com
|
11.28
|
2.66
|
11.95
|
100
|
$47.50
|
$1,753.00
|
|
PM
|
Philip Morris Int
|
16.3
|
4.1
|
85.42
|
20
|
$68.78
|
$1,668.80
|
|
JNJ
|
Johnson & Johnson
|
19.22
|
2.93
|
69.19
|
20
|
$50.80
|
$1,728.20
|
|
MO
|
Altria Group Inc
|
15.51
|
5.19
|
33.48
|
40
|
$70.40
|
$1,355.20
|
|
SYY
|
Sysco Corporation
|
19.13
|
3.47
|
31.65
|
40
|
$44.40
|
$1,280.80
|
|
DRI
|
Darden Restaurant
|
14.85
|
4.4
|
46.66
|
30
|
$61.50
|
$1,386.30
|
|
CA
|
CA Inc.
|
12.95
|
3.37
|
21.86
|
50
|
$50.00
|
$1,462.50
|
|
PG
|
Procter & Gamble
|
20.03
|
3.01
|
68.72
|
25
|
$58.20
|
$1,947.25
|
|
KRFT
|
Kraft Foods Group
|
17
|
3.86
|
44.41
|
40
|
$80.00
|
$2,070.80
|
|
MAT
|
Mattel Inc.
|
18.13
|
3.44
|
36.45
|
40
|
$55.60
|
$1,620.00
|
|
PEP
|
Pepsico Inc. Com
|
18.69
|
2.75
|
70.88
|
20
|
$43.60
|
$1,594.60
|
|
KMB
|
Kimberly-Clark Co
|
19.76
|
3.34
|
86.82
|
15
|
$46.50
|
$1,402.20
|
|
COP
|
ConocoPhillips Co
|
11.04
|
4.04
|
61.06
|
20
|
$52.80
|
$1,326.00
|
|
GIS
|
General Mills In
|
17.64
|
2.78
|
42.13
|
30
|
$41.10
|
$1,479.60
|
|
UL
|
Unilever PLC Comm
|
18.07
|
3.5
|
39.65
|
35
|
$47.01
|
$1,336.30
|
|
NSRGY
|
NESTLE SA REG SHR
|
18.01
|
3.34
|
68.69
|
30
|
$65.31
|
$1,963.50
|
|
GE
|
General Electric
|
17.11
|
3.2
|
23.39
|
65
|
$48.10
|
$1,504.10
|
|
ADP
|
Automatic Data Pr
|
24.71
|
2.38
|
61.65
|
25
|
$42.50
|
$1,779.00
|
|
K
|
Kellogg Company C
|
23.21
|
2.94
|
61.52
|
25
|
$44.50
|
$1,517.75
|
|
KO
|
Coca-Cola Company
|
20.06
|
2.81
|
38.83
|
40
|
$42.80
|
$1,527.20
|
|
RTN
|
Raytheon Company
|
13.07
|
2.77
|
57.04
|
20
|
$42.00
|
$1,508.20
|
|
RCI
|
Rogers Communicat
|
10.75
|
4.18
|
46.5
|
50
|
$83.30
|
$1,980.00
|
|
GPC
|
Genuine Parts Com
|
17.41
|
2.67
|
77.06
|
20
|
$41.28
|
$1,540.20
|
|
TSCDY
|
TESCO PLC SPONS A
|
231.4
|
3.96
|
17.08
|
110
|
$75.68
|
$1,903.00
|
|
APD
|
Air Products and
|
21.87
|
2.64
|
85.71
|
15
|
$40.50
|
$1,532.10
|
|
GSK
|
GlaxoSmithKline P
|
19.63
|
4.6
|
52.16
|
30
|
$71.13
|
$1,526.70
|
|
WMT
|
Wal-Mart Stores
|
14.1
|
2.5
|
79.25
|
20
|
$36.16
|
$1,459.60
|
|
BTI
|
British American
|
15.56
|
4.1
|
111.13
|
23
|
$96.14
|
$2,336.11
|
|
CHL
|
China Mobile Limi
|
10.48
|
4.11
|
55.32
|
25
|
$54.95
|
$1,349.25
|
|
MMM
|
3M Company Common
|
17.74
|
2.2
|
110.27
|
15
|
$37.43
|
$1,703.70
|
|
TUP
|
Tupperware Brands
|
17.63
|
2.39
|
80.98
|
15
|
$29.40
|
$1,211.55
|
|
IBM
|
International Bus
|
12.97
|
1.97
|
197.09
|
16
|
$57.60
|
$2,916.32
|
|
HAS
|
Hasbro Inc.
|
18.45
|
3.33
|
44.09
|
30
|
$45.60
|
$1,367.40
|
|
T
|
AT&T Inc.
|
25.77
|
5.32
|
34.47
|
30
|
$53.70
|
$1,014.90
|
|
WAG
|
Walgreen Co. Comm
|
20.81
|
2.4
|
44.25
|
30
|
$34.20
|
$1,442.10
|
|
AFL
|
AFLAC Incorporate
|
8.05
|
2.42
|
59.39
|
20
|
$28.00
|
$1,155.80
|
|
TGT
|
Target Corporatio
|
15.22
|
2.39
|
71.46
|
20
|
$30.20
|
$1,266.20
|
|
CSCO
|
Cisco Systems In
|
12.61
|
2.64
|
26.19
|
50
|
$31.00
|
$1,165.50
|
|
DE
|
Deere & Company C
|
9.62
|
2.44
|
84.11
|
15
|
$29.10
|
$1,254.60
|
|
RGR
|
Sturm Ruger & Co
|
11.25
|
3.62
|
51.65
|
20
|
$38.52
|
$1,047.40
|
|
LO
|
Lorillard Inc Co
|
13.22
|
5.11
|
42.3
|
30
|
$65.00
|
$1,269.00
|
|
$2,330.23
|
$70,259.53
|