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Showing posts with label Beverage. Show all posts
Showing posts with label Beverage. Show all posts

Coca-Cola Stock Buy For The Dividend Yield Passive Income Portfolio

I keep it short; Coca Cola is the next purchase for the Dividend Yield Passive Income Portfolio (DYPI). I bought 40 shares for a price of $38.30. The total purchase amount was $1,553.20. KO shares representing 1.7 percent of the full portfolio. It’s the eleventh biggest position.

Every Friday I plan to put one new stake into the DYPI-Portfolio. As of now, 24 companies are part of the portfolio and I have $65,609 in cash for further acquisitions. With this capital I plan to increase to total number of stock holdings to 50-70 by the end of this year. The DYPI-Portfolio was funded virtual on October 03, 2012.

Dividend Yield Passive Income Portfolio (Click to enlarge)

Latest Portfolio Transactions (Click to enlarge)

The new Coke position will give me additional $44.80 of yearly dividend income. It represents a yield on cost of 2.88 percent. The full portfolio income is estimated at $1,267.47. I plan to boost the passive capital income to $3,000 to $4,000 by the end of this year. All I need to do is to keep the yield on cost of the portfolio over 3 percent. This plan developed to a tough fight because the yields going rapidly down for high-quality stocks. The reason is a very strong gaining stock market.

If the prices still rise, I needed to make a longer break or must cut my own target. For the time being, the current yield on cost is still over 3 percent at 3.64 percent but the actual portfolio yield is now below 3.4 percent.

The difference is reasonable with a small capital gain from the existing portfolio holdings (6.96 percent). This is still in-line with the performance of the market and major indices. Because of the high cash amount (65 percent of the mony is not invested), the full performance is only 2.63 percent or $2,409.95.

Portfolio Performance
I accept this underperformance because I like to buy slowly stocks in order to get better prices when single investments have starting difficulties. In addition I have many optionalities when there are new investment targets.
The disadvantage of this strategy is that I will lose performance when the market goes strongly up. This happened over the past months.

Why Coca Cola? Coke is a leading beverage company, engages in the manufacture, marketing, and sale of nonalcoholic beverages worldwide. The company primarily offers sparkling beverages and still beverages. KO is the dominating player followed by PepsiCo which is still part of my portfolio.

Coca-Cola is one of the safest long-term dividend growth stocks. The board from Coca-Cola managed to raise dividends over a period of 51 consecutive years. The beta ratio is very low (0.5). This figure is an expression of the high diversification and global presence of the company - KO generates 57% percent of its sales in Americans countries, 11.76% in Europe and 18.11% in Asian areas. Coke is also one of the world’s top brands with a very sustainable operating margin of 22.45 percent.

Dividends and Earnings per Share of Coca-Cola)

The drawback is that KO shares are highly priced. The current P/E is 19.71 and the yield at 2.88. Compared to other high-quality dividend growth stocks it’s in my view still a good ratio. Remember: The low yields from long-term bonds are not far away.

Coke’s future earnings are expected to grow in a range of 8 percent. The dividends should top this growth rate because of the smaller amount of outstanding shares (KO still purchases own shares for $3 billion).

Here is the income perspective of the Dividend Yield Passive Income Portfolio:

Sym
Name
P/E Ratio
Dividend Yield

Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
12.58
4.1

28.90
50
$64.25
$1,613.00
LMT
Lockheed Martin C
11.07
4.65

92.72
20
$86.00
$1,854.80
INTC
Intel Corporation
10.16
4.09

21.27
50
$44.25
$1,068.75
MCD
McDonald's Corpor
18.53
2.96

87.33
15
$44.10
$1,495.05
WU
Western Union Com
8.61
3.09

11.95
100
$45.00
$1,467.00
PM
Philip Morris Int
17.66
3.59

85.42
20
$65.58
$1,827.40
JNJ
Johnson & Johnson
20.49
3.08

69.19
20
$48.80
$1,583.80
MO
Altria Group Inc
16.42
5.12

33.48
40
$69.20
$1,347.20
SYY
Sysco Corporation
18.56
3.23

31.65
40
$43.60
$1,354.40
DRI
Darden Restaurant
13.97
3.95

46.66
30
$57.90
$1,481.10
CA
CA Inc.
12.97
3.92

21.86
50
$50.00
$1,272.00
PG
Procter & Gamble
17.56
2.9

68.72
25
$56.20
$1,908.50
KRFT
Kraft Foods Group
18.35
3.98

44.41
40
$80.00
$2,010.80
MAT
Mattel Inc.
19.05
3.05

36.45
40
$51.60
$1,685.60
PEP
Pepsico Inc. Com
19.68
2.79

70.88
20
$43.00
$1,540.80
KMB
Kimberly-Clark Co
21.22
3.23

86.82
15
$45.45
$1,398.90
COP
ConocoPhillips Co
8.85
4.47

61.06
20
$52.80
$1,181.40
GIS
General Mills In
17.13
2.79

42.13
30
$38.85
$1,387.20
UL
Unilever PLC Comm
20.74
3.03

39.65
35
$43.89
$1,442.00
NSRGY
NESTLE SA REG SHR
20.45
2.89

68.69
30
$63.15
$2,200.50
GE
General Electric
18.34
3.04

23.39
65
$46.80
$1,523.60
ADP
Automatic Data Pr
22.68
2.55

61.65
25
$41.50
$1,612.00
K
Kellogg Company C
23.31
2.81

61.52
25
$43.75
$1,555.00
KO
Coca-Cola Company
19.81
2.68

38.83
40
$41.80
$1,553.20
















$1,267.47
$37,364.00
















Average Yield
3.39%
















Yield On Cost
3.64%

I Bought Coke And Sold NYSE Euronext Yesterday

Stocks I Bought and Sold Yesterday

Yesterday was an active trading day for me. I sold 90 share of the diversified investment group NYSE Euronext (NYX) at $36.50 and bought 100 shares of Coca Cola (KO).

No further fantasy for NYSE Euronext Shares

I sold NYX shares because the stock price is around 10% over the takeover price announced by the IntercontinentalExchange (ICE). I believe that it could be possible that another exchange could start a second offer and overbid the current price. So my sell-off was only a part of my full position. With the rest I could benefit from a higher offer. However, fantasy with the NYX is over. I don’t see any growth perspectives if the deal passes through. ICE, CME and BOCE are more interesting now.

My whole NYX stake was up around 40% and I like to hedge these gains. Now, everything is nearly safe and my big risk in this position is off.
In addition, I bought some shares of Coca Cola and increased my stake by a significant number. KO was the best performing of my core holdings over the recent years but compared to the other stocks I own, it is still an underperformer.

Cocal Cola is down, but long-term still a buy

KO was down 2.72% yesterday. The earnings results were solid but the market expected more. I don’t really care about the current price levels and quarter reports. They change too fast. I am a long-term investor. I bought several times KO shares and increased my position every time at a higher rate. That’s not a good choice but if my portfolio grows, I need to increase the total amount of my safe heaven core holdings.

I love stocks with very long dividend growth, a trustful managements and solid market positions in several markets worldwide. KO is definitely not cheap. The EV/EBITDA ratio is at 14! The yield is still acceptable at 2.72%. I expect that the yield should climb over 3% with the next dividend hike.

I have several beverage stocks and they all have a very high valuation. I don’t know why but in the market is a huge fight about big companies with strong brands and distribution power.

Companhia de Bebidas Das Americas offers a higher risk

Companhia de Bebidas Das Americas (ABV) is an aggressively buying company in the brewing industry. They lend huge amounts of debt to buy the biggest brewers in the world. I don’t like those offensive strategies, especially when they pay prices at 14x of the EBITDA, but they are somehow successful and the stock price explode. Coke is not cheap but solid. I believe that it should be possible to realize a yearly long-term return of 8% or more.

Dividend Stock Idea of the Day – Molson Coors Brewing (NYSE:TAP)

Dividend Stock Ideas by Dividend Yields – Stock, Capital Investment. Our Dividend Idea of the day is the beer brewing company Molson Coors Brewing (NYSE:TAP). The current dividend yield amounts to 2.94 percent.

Molson Coors Brewing Company (MCBC) is a holding company. Its operating subsidiaries include Molson Coors Brewing Company (UK) Limited (MCBC-UK), operating in the United Kingdom; Molson Coors Canada (MCC), operating in Canada, and other corporate entities. The Company’s operating segments include Canada, the United States, the United Kingdom, and Molson Coors International (MCI). The Company has a diverse portfolio of owned and partner brands, including signature brands Coors Light, Molson Canadian and Carling. During the year ended December 31, 2010, the Company acquired 51% interest in Molson Coors Si'hai Brewing (China) Co., Ltd (MC-Si'hai). In June 2010, the Company launched Coors Light in Russia. Coors Light in 330 milliliter bottles will be available in supermarkets, grocery stores, convenience stores, as well as selected bars and neighbourhood stores across the Moscow region (More on Reuters).

Here are some Fundamental Figures:


Sales
3.28 Bil
Income
688.70 Mil
Net Profit Margin
21.01%
Return on Equity
9.09%
Debt/Equity Ratio
0.25
Revenue/Share
17.48
Earnings/Share
3.66
Book Value/Share
42.85
Dividend Rate
1.28
Payout Ratio
26.00%

Here are some Pricing Figures:


Price/Earnings
11.8
Price/Book
1
Price/Sales
2.5
Price/Cash Flow
11.6
Dividend Yield %
2.94
Forward Price/Earnings
11.1
PEG Ratio
0.9
PEG Payback (Yrs)
6.5

Here are some Trading Figures:


Last Price
43.5
52-Wk High
51
52-Wk Low
43
Volume
 NA
Avg Daily Vol (13 Wks)
 1.23 Mil
50-Day Moving Average
45.28
200-Day Moving Average
47.01
Volatility (beta)
0.73

Sales and Net Income of Molson Coors (Click to enlarge)


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