On Friday
08, 2013 I put 25 shares of the processed & packaged goods company Kellogg into the Dividend Yield Passive Income
Portfolio (DYPI).
The total purchase amount was $1,543 at a stock price of $61.52.
Kellogg represents now 1.47 percent of the full portfolio which was funded
virtual with 100k on October 03, 2012.
Kellogg manufactures
and markets ready-to-eat cereal and convenience food products primarily in
North America, Europe, Latin America, and the Asia Pacific. It primarily
produces snacks and frozen food, including cookies, crackers, toaster pastries,
cereal bars, fruit-flavored snacks, frozen waffles, and veggie foods. The
company sells its products to grocery trade through its direct sales force,
brokers, and distributors under the Kellogg's name.
The current
dividend yield of Kellogg amounts to 2.86% and the P/E ratio has a value of
23.94. Growth is expected in earnings for the next years around the 7% percent
mark. That’s solid in my view.
The new
stake will hike my current dividend income by $44. The total gross income is now
estimated at $1,221.97. I plan to boost the passive income to $3,000 – 4,000 by the end
of the year. All I need to do is to invest the remaining capital of $67,127.40
into dividend stocks with a yield around the 3% mark.
 |
| Dividend Yield Passive Income Portfolio |
 |
| Latest Portfolio Transactions |
The Kellogg
buy is the second stock purchase with a yield below the 3% yield. You can see
that its getting hard to find stocks with a higher yield. If I have luck, the
next hike can lift the current yield above the magic level.
For sure,
high quality stocks have a high price and you must pay it or leave the battle field. In my view it is
still a better choice to have high valuated stocks with a top long-term growth
perspective as being invested in bonds with a longer duration. In times of
rising interest rates and gaining inflation, your bond portfolio will definitely
loose the ground. Dividend stocks like Kellogg force the inflation and get
stronger with every recession.
 |
| Kellogg Earnings and Dividends |
The full
portfolio is up 2.2 percent since the date of funding. Major indices gained
3-6% during the same period. The lower performance is reasonable with a high
cash amount and the slow purchase process. I buy only one stock a week for
around 1-2 percent of the portfolio value. This strategy hedges me against falling markets
and could give a better average price but will also lead to a worser performance
if the markets go strong up. Unfortunately, this happened in the past. My stockholdings delivered
a total return of 6.15%. That’s a pretty good ratio and in-line with the market.
 |
| Portfolio Performance |
Here is the income perspective of the portfolio:
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
TRI
|
|
12.34
|
4.18
|
|
28.90
|
50
|
$64.25
|
$1,536.00
|
LMT
|
Lockheed Martin C
|
10.62
|
4.84
|
|
92.72
|
20
|
$86.00
|
$1,799.80
|
INTC
|
Intel Corporation
|
10.28
|
4.04
|
|
21.27
|
50
|
$44.25
|
$1,079.00
|
MCD
|
McDonald's Corpor
|
18.11
|
3.03
|
|
87.33
|
15
|
$44.10
|
$1,480.65
|
WU
|
Western Union Com
|
8.52
|
2.95
|
|
11.95
|
100
|
$42.50
|
$1,463.00
|
PM
|
Philip Morris Int
|
17.76
|
3.57
|
|
85.42
|
20
|
$65.58
|
$1,822.20
|
JNJ
|
Johnson & Johnson
|
20.14
|
3.14
|
|
69.19
|
20
|
$48.80
|
$1,563.80
|
MO
|
Altria Group Inc
|
16.49
|
5.01
|
|
33.48
|
40
|
$68.00
|
$1,360.00
|
SYY
|
Sysco Corporation
|
17.95
|
3.34
|
|
31.65
|
40
|
$43.60
|
$1,330.80
|
DRI
|
Darden Restaurant
|
13.57
|
4.06
|
|
46.66
|
30
|
$57.90
|
$1,419.90
|
CA
|
CA Inc.
|
12.69
|
4
|
|
21.86
|
50
|
$50.00
|
$1,254.00
|
PG
|
Procter & Gamble
|
17.45
|
2.92
|
|
68.72
|
25
|
$56.20
|
$1,929.50
|
KRFT
|
Kraft Foods Group
|
17.83
|
4.02
|
|
44.41
|
40
|
$80.00
|
$1,988.40
|
MAT
|
Mattel Inc.
|
18.58
|
3.13
|
|
36.45
|
40
|
$51.60
|
$1,657.20
|
PEP
|
Pepsico Inc. Com
|
19.66
|
2.79
|
|
70.88
|
20
|
$43.00
|
$1,544.00
|
KMB
|
Kimberly-Clark Co
|
21.26
|
3.22
|
|
86.82
|
15
|
$45.45
|
$1,412.85
|
COP
|
ConocoPhillips Co
|
8.61
|
4.52
|
|
61.06
|
20
|
$52.80
|
$1,167.80
|
GIS
|
General Mills In
|
17.14
|
2.79
|
|
42.13
|
30
|
$38.85
|
$1,389.90
|
UL
|
Unilever PLC Comm
|
20.45
|
3.08
|
|
39.65
|
35
|
$43.89
|
$1,431.15
|
NSRGY
|
NESTLE SA REG SHR
|
19.97
|
2.96
|
|
68.69
|
30
|
$63.15
|
$2,125.80
|
GE
|
General Electric
|
18.33
|
3.04
|
|
23.39
|
65
|
$46.80
|
$1,545.05
|
ADP
|
Automatic Data Pr
|
22.09
|
2.62
|
|
61.65
|
25
|
$41.50
|
$1,583.75
|
K
|
Kellogg Company C
|
23.02
|
2.85
|
|
61.52
|
25
|
$43.75
|
$1,538.00
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,221.97
|
$35,422.55
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Yield
|
3.45%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield On Cost
|
3.67%
|
Dividend income growth stocks with high margins
and big market capitalization originally published at "long-term-investments.blogspot.com". Every dividend is
only half worth as it should be when the dividend payments are not sustainable
or from a low margin business that needs money to keep the business running.
