On February
21, 2014, I closed my position in Sturm, Ruger & Co. The company reduced
its dividend in September 2013 from 65 cents to 58. The next dividend should
also be lower at 54 cents. It’s not the kind of long-term dividend growth
stock I want to hold in my portfolio. The stake was initiated in
August 2013 and resulted in a 31,41 percent overall return.
I still
believe that Sturm, Ruger & Co. is a well managed company with deep values
but it’s too small and more volatile than bigger defense stocks like Lockheed
Martin or Raytheon.
For the
time being, the portfolio delivered around $2,000 in dividends over the
life-time and has now still $13,487.05 in cash values. I’m still confident
about the current market situation but want to keep the high cash ratio in
order to be prepared when good bargains are available.
The overall
return of the portfolio is 9.56 percent and 1.28 percent year-to-date. The
value is close to the performance of the Dow Jones since the beginning of the
year but less than the values of the S&P 500 and Nasdaq. Those indices also benefited from massive capital gains of social networks like Facebook or innovative stocks like Tesla. Each investor can build it's own thoughts about the current valuation of those stocks.
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| Dividend Yield Passive Income Portfolio Performance LTD (Click to enlarge) |
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| Dividend Yield Passive Income Portfolio Performance YTD (Click to enlarge) |
Despite the
position close of Sturm,Ruger & Co., dividend hikes of current portfolio holdings
could overcompensate the lost dividend income stream. The expected dividend
income is now at $3,017.76.
--------------------------------------
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.
--------------------------------------
Here is the income perspective of the portfolio
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
TRI
|
2865.83
|
3.79
|
28.90
|
50
|
$65.25
|
$1,717.00
|
|
LMT
|
Lockheed Martin C
|
17.67
|
3.07
|
92.72
|
20
|
$99.20
|
$3,246.00
|
INTC
|
Intel Corporation
|
13.1
|
3.63
|
21.27
|
50
|
$45.00
|
$1,238.00
|
MCD
|
McDonald's Corpor
|
17.13
|
3.32
|
87.33
|
25
|
$79.00
|
$2,378.75
|
WU
|
Western Union Com
|
11.62
|
3.01
|
11.95
|
100
|
$50.00
|
$1,673.00
|
PM
|
Philip Morris Int
|
15.36
|
4.43
|
89.76
|
30
|
$107.40
|
$2,427.30
|
JNJ
|
Johnson & Johnson
|
19
|
2.89
|
69.19
|
20
|
$52.80
|
$1,842.40
|
MO
|
Altria Group Inc
|
15.87
|
5.13
|
33.48
|
40
|
$73.60
|
$1,450.40
|
SYY
|
Sysco Corporation
|
21.79
|
3.14
|
31.65
|
40
|
$45.20
|
$1,440.80
|
DRI
|
Darden Restaurant
|
18.37
|
4.32
|
46.66
|
30
|
$64.50
|
$1,531.80
|
CA
|
CA Inc.
|
14.43
|
2.99
|
21.86
|
50
|
$50.00
|
$1,675.00
|
PG
|
Procter & Gamble
|
21
|
3.08
|
68.72
|
25
|
$60.20
|
$1,966.50
|
KRFT
|
Kraft Foods Group
|
12.23
|
3.72
|
44.41
|
40
|
$80.00
|
$2,210.80
|
MAT
|
Mattel Inc.
|
14.41
|
3.93
|
36.45
|
40
|
$58.40
|
$1,492.40
|
PEP
|
Pepsico Inc. Com
|
18.3
|
2.16
|
70.88
|
20
|
$34.08
|
$1,601.40
|
KMB
|
Kimberly-Clark Co
|
19.69
|
2.98
|
86.82
|
15
|
$48.60
|
$1,655.25
|
COP
|
ConocoPhillips Co
|
8.98
|
4.12
|
61.06
|
20
|
$52.80
|
$1,330.00
|
GIS
|
General Mills In
|
18.53
|
2.95
|
42.13
|
30
|
$44.10
|
$1,500.90
|
UL
|
Unilever PLC Comm
|
19.07
|
3.5
|
39.65
|
35
|
$50.26
|
$1,436.05
|
NSRGY
|
NESTLE SA REG SHR
|
22.36
|
2.9
|
68.69
|
30
|
$65.31
|
$2,263.20
|
GE
|
General Electric
|
18.74
|
3.22
|
23.39
|
65
|
$53.30
|
$1,655.55
|
ADP
|
Automatic Data Pr
|
26.62
|
2.3
|
61.65
|
25
|
$44.63
|
$1,944.50
|
K
|
Kellogg Company C
|
12.18
|
2.26
|
61.52
|
25
|
$34.00
|
$1,517.25
|
KO
|
Coca-Cola Company
|
20.04
|
2.94
|
38.83
|
40
|
$44.80
|
$1,528.00
|
RTN
|
Raytheon Company
|
16.17
|
1.69
|
57.04
|
20
|
$33.00
|
$1,958.20
|
RCI
|
Rogers Communicat
|
11.73
|
4.4
|
46.5
|
50
|
$84.60
|
$1,933.50
|
GPC
|
Genuine Parts Com
|
19.73
|
2.48
|
77.06
|
20
|
$43.00
|
$1,761.80
|
TSCDY
|
TESCO PLC SPONS A
|
N/A
|
4.13
|
17.08
|
110
|
$75.79
|
$1,824.90
|
APD
|
Air Products and
|
25.22
|
1.78
|
85.71
|
15
|
$31.95
|
$1,819.80
|
GSK
|
GlaxoSmithKline P
|
15.8
|
4.4
|
52.16
|
30
|
$74.07
|
$1,678.20
|
WMT
|
Wal-Mart Stores
|
15.23
|
2.52
|
79.25
|
20
|
$37.60
|
$1,494.00
|
BTI
|
British American
|
16.41
|
3.87
|
111.13
|
30
|
$125.40
|
$3,263.70
|
CHL
|
China Mobile Limi
|
9.39
|
4.67
|
55.32
|
40
|
$89.56
|
$1,902.00
|
MMM
|
3M Company Common
|
19.99
|
2.05
|
110.27
|
15
|
$41.40
|
$2,020.95
|
TUP
|
Tupperware Brands
|
15.35
|
3.12
|
80.98
|
15
|
$37.20
|
$1,179.00
|
IBM
|
International Bus
|
12.4
|
2.05
|
193.17
|
20
|
$76.00
|
$3,703.40
|
HAS
|
Hasbro Inc.
|
25.36
|
2.91
|
44.09
|
30
|
$48.00
|
$1,654.80
|
T
|
AT&T Inc.
|
9.5
|
5.62
|
34.47
|
30
|
$54.30
|
$957.90
|
WAG
|
Walgreen Co. Comm
|
23.93
|
1.79
|
44.25
|
30
|
$36.60
|
$2,038.50
|
AFL
|
AFLAC Incorporate
|
9.38
|
2.27
|
59.39
|
20
|
$28.80
|
$1,281.60
|
TGT
|
Target Corporatio
|
19.76
|
2.72
|
68.69
|
32
|
$52.80
|
$2,001.28
|
CSCO
|
Cisco Systems In
|
14.41
|
3.1
|
23.98
|
130
|
$88.40
|
$2,834.00
|
DE
|
Deere & Company C
|
9.16
|
2.4
|
84.11
|
15
|
$30.60
|
$1,288.95
|
LO
|
Lorillard Inc Co
|
15.42
|
4.66
|
42.3
|
30
|
$67.95
|
$1,471.80
|
UNP
|
Union Pacific Cor
|
18.95
|
1.78
|
154.75
|
8
|
$25.44
|
$1,443.04
|
IDA
|
IDACORP Inc. Com
|
15.29
|
2.91
|
47.94
|
20
|
$32.40
|
$1,123.80
|
BAX
|
Baxter Internatio
|
18.82
|
2.79
|
66.38
|
20
|
$38.40
|
$1,390.00
|
MSFT
|
Microsoft Corpora
|
14.02
|
2.69
|
33.88
|
40
|
$40.80
|
$1,532.40
|
ACN
|
Accenture plc. Cl
|
17.75
|
2.09
|
77.71
|
20
|
$34.80
|
$1,667.00
|
BCE
|
BCE Inc. Common
|
16.71
|
3.93
|
44.26
|
25
|
$42.48
|
$1,090.00
|
VZ
|
Verizon Communica
|
11.88
|
4.4
|
50.31
|
30
|
$62.70
|
$1,427.40
|
CVX
|
Chevron Corporati
|
10.43
|
3.46
|
124.03
|
10
|
$40.00
|
$1,153.30
|
ORCL
|
Oracle Corporatio
|
16.57
|
0.92
|
35.2
|
40
|
$14.40
|
$1,564.40
|
XEL
|
Xcel Energy Inc.
|
15.67
|
3.71
|
28.21
|
50
|
$55.50
|
$1,514.50
|
CHRW
|
C.H. Robinson Wor
|
19.76
|
2.01
|
57.72
|
20
|
$21.00
|
$1,037.20
|
XOM
|
Exxon Mobil Corpo
|
13
|
2.63
|
101.51
|
20
|
$50.40
|
$1,925.40
|
$3,017.76
|
$97,658.97
|
||||||
Average Yield
|
3.09%
|
||||||
Yield On Cost
|
3.38%
|