I made the
decision last Friday to increase my British American Tobacco Stake. I purchased
10 additional shares and increased the current position by 77 percent. The new
total purchase amount is now at USD 2,555.90. BTI is now the biggest stake in
my Dividend Yield Passive Income Portfolio.
BTI is a
big player within the tobacco sector. I believe in the strong brands of the
company and the leading market positions of the major core markets.
The tobacco
company has a also a strong cash flow. Last fiscal year, BTI generated around USD
4.4 billion in cash at spend only 400 million net for investing activities. The
current price for that entity is USD 100 billion. Not cheap definitely but high
quality is also highly valuated.
 |
| Latest Portfolio Transactions (Click to enlarge) |
--------------------------------------
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.
--------------------------------------
 |
| Dividend Yield Passive Income Portfolio I (Click to enlarge) |
 |
| Dividend Yield Passive Income Portfolio II (Click to enlarge) |
My current
dividend income is now estimated at USD 2,061.71 for the full year. The current
yield on cost amounts to 3.51 percent while the average portfolio yield is at
3.22 percent.
The
strategy I follow is a real losing strategy if the markets are very bullish
over a longer time. Nobody knows this before. But my main focus is to build a
long-term passive income source.
Since the
date of funding, the portfolio is up 6.21 percent, a clear underperformance
compared to the Dow Jones and S&P 500. But you need to know the portfolio
is not fully invested. As of now I still have USD 42,628.55 in cash for further
stock holding buys. I plan to invest this money within the current year in
order to boost the dividend income over a level of USD 3,000 bucks per year.
The
portfolio holdings are up 9.36 percent since the date of funding, October 04,
2012. The only way to beat the market in the short-term is to hope for a longer
rain period at the market. My big cash position will help me to avoid an
underperformance.
 |
| Portfolio Performance (Click to enlarge) |
Here is the income perspective:
|
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
|
16.05
|
3.82
|
|
28.90
|
50
|
$64.50
|
$1,698.50
|
|
LMT
|
Lockheed Martin C
|
13.06
|
3.93
|
|
92.72
|
20
|
$89.00
|
$2,250.60
|
|
INTC
|
Intel Corporation
|
11.99
|
3.75
|
|
21.27
|
50
|
$45.00
|
$1,195.00
|
|
MCD
|
McDonald's Corpor
|
18.69
|
2.99
|
|
87.33
|
15
|
$45.15
|
$1,523.70
|
|
WU
|
Western Union Com
|
10.47
|
2.73
|
|
11.95
|
100
|
$47.50
|
$1,747.00
|
|
PM
|
Philip Morris Int
|
17.37
|
3.81
|
|
85.42
|
20
|
$68.78
|
$1,794.00
|
|
JNJ
|
Johnson & Johnson
|
24.35
|
2.78
|
|
69.19
|
20
|
$49.80
|
$1,799.80
|
|
MO
|
Altria Group Inc
|
17.06
|
4.77
|
|
33.48
|
40
|
$70.40
|
$1,476.80
|
|
SYY
|
Sysco Corporation
|
20.61
|
3.13
|
|
31.65
|
40
|
$44.40
|
$1,424.00
|
|
DRI
|
Darden Restaurant
|
16.12
|
4.06
|
|
46.66
|
30
|
$61.50
|
$1,512.90
|
|
CA
|
CA Inc.
|
14.38
|
3.36
|
|
21.86
|
50
|
$50.00
|
$1,496.00
|
|
PG
|
Procter & Gamble
|
18.1
|
2.83
|
|
68.72
|
25
|
$57.20
|
$2,038.75
|
|
KRFT
|
Kraft Foods Group
|
21.06
|
3.53
|
|
44.41
|
40
|
$80.00
|
$2,267.60
|
|
MAT
|
Mattel Inc.
|
20.3
|
2.87
|
|
36.45
|
40
|
$53.60
|
$1,883.20
|
|
PEP
|
Pepsico Inc. Com
|
21.66
|
2.58
|
|
70.88
|
20
|
$43.60
|
$1,686.40
|
|
KMB
|
Kimberly-Clark Co
|
21.68
|
3.11
|
|
86.82
|
15
|
$46.50
|
$1,498.20
|
|
COP
|
ConocoPhillips Co
|
10.44
|
4.1
|
|
61.06
|
20
|
$52.80
|
$1,296.80
|
|
GIS
|
General Mills In
|
18.29
|
2.68
|
|
42.13
|
30
|
$41.10
|
$1,532.70
|
|
UL
|
Unilever PLC Comm
|
21.32
|
3.02
|
|
39.65
|
35
|
$44.91
|
$1,482.60
|
|
NSRGY
|
NESTLE SA REG SHR
|
19.08
|
3.21
|
|
68.69
|
30
|
$65.31
|
$2,020.50
|
|
GE
|
General Electric
|
17.73
|
3.09
|
|
23.39
|
65
|
$48.10
|
$1,544.40
|
|
ADP
|
Automatic Data Pr
|
24.44
|
2.37
|
|
61.65
|
25
|
$42.50
|
$1,835.25
|
|
K
|
Kellogg Company C
|
26.14
|
2.65
|
|
61.52
|
25
|
$44.00
|
$1,662.50
|
|
KO
|
Coca-Cola Company
|
21.47
|
2.61
|
|
38.83
|
40
|
$42.80
|
$1,641.20
|
|
RTN
|
Raytheon Company
|
12.17
|
3.03
|
|
57.04
|
20
|
$42.00
|
$1,389.40
|
|
RCI
|
Rogers Communicat
|
11.69
|
4.15
|
|
51.06
|
50
|
$83.30
|
$2,013.50
|
|
GPC
|
Genuine Parts Com
|
20.48
|
2.43
|
|
77.06
|
20
|
$41.28
|
$1,700.60
|
|
TSCDY
|
TESCO PLC SPONS A
|
214.8
|
4.27
|
|
17.98
|
110
|
$75.68
|
$1,767.70
|
|
APD
|
Air Products and
|
17.38
|
2.78
|
|
85.71
|
15
|
$40.50
|
$1,449.75
|
|
GSK
|
GlaxoSmithKline P
|
19.34
|
4.43
|
|
52.16
|
30
|
$70.38
|
$1,588.80
|
|
WMT
|
Wal-Mart Stores
|
15.3
|
2.24
|
|
79.25
|
20
|
$34.72
|
$1,552.60
|
|
BTI
|
British American
|
16.85
|
3.88
|
|
114.6
|
23
|
$95.22
|
$2,429.03
|
|
CHL
|
China Mobile Limi
|
10.45
|
4.15
|
|
55.32
|
25
|
$54.95
|
$1,307.50
|
|
MMM
|
3M Company Common
|
18.06
|
2.14
|
|
110.27
|
15
|
$36.75
|
$1,727.10
|
|
TUP
|
Tupperware Brands
|
23.45
|
2.42
|
|
80.98
|
15
|
$29.40
|
$1,201.20
|
|
IBM
|
International Bus
|
13.3
|
1.82
|
|
206.35
|
8
|
$28.00
|
$1,536.56
|
|
HAS
|
Hasbro Inc.
|
18.75
|
3.13
|
|
44.09
|
30
|
$44.40
|
$1,429.20
|
|
T
|
AT&T Inc.
|
27.74
|
4.99
|
|
34.47
|
30
|
$53.70
|
$1,074.30
|
|
WAG
|
Walgreen Co. Comm
|
21.3
|
2.26
|
|
44.25
|
30
|
$33.00
|
$1,462.80
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$2,061.73
|
$63,938.44
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.22%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.51%
|
