Last Friday
I bought 35 Unilever (UL) shares for the Dividend Yield Passive Income
Portfolio (DYPI). The full purchase amount was $1,392.75 and represents roughly
1.3 percent of the portfolio worth.
Unilever is
a major diversified food company with headquarter in the United Kingdom. Unilever
PLC operates as a fast-moving consumer goods company in Asia, Africa, Europe,
and the Americas. It offers personal care products, including skin care and
hair care products, deodorants, and oral care products.
UL has a
strong market position is several markets worldwide and is one of the dominant
global player in the emerging markets. 32.82 percent of sales are generated in
the Americans nations, 31.83 percent in Europe and 32.33 percent in
Asian/Pacific countries. With this in mind, Unilever is behind Nestlé one of
the world best diversified foods and consumer goods distributor.
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| Dividends and EPS |
The new
stake will give me additional $50 in dividends per year. The full expected
portfolio dividend income is now $1,016.08. The passive income should grow to a
total amount of 3k – 4k by the end of this year. This should be possible with
my current cash position.
I paid
$26,377.20 for all 19 stocks combined. Now, they are worth $27,581.25. Not
enough, I still have $73.7k in cash for further investments and I plan to
increase the current stock holdings to a total number of 50-70 shares. So I try
to put every Friday one position with an attractive yield into the portfolio. I
follow a buy and hold strategy and like to use the dividends for further
investments. The investment horizon is long-term, 10 years or more.
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| Portfolio Holdings (Click to enlarge) |
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| Latest Portfolio Transactions (Click to enlarge) |
This is my
investment approach. If you like to make money by trading stocks and realizing
a quick return, this is the wrong investment site. Dividend growth stocks will
not make you rich in a short period but they can deliver you a solid return
over the long-run. I talk about a performance of around 8% in average.
The DYPI
portfolio was funded with 100k virtual on October 03, 2012. The aim is to show
how long-term dividend growth stock investing works. I personally made huge
amount of money only by buying dividend stocks, receiving dividends and selling
them in order to invest the new money into more attractive stocks. This
strategy resulted in a yearly
double-digit return.
Well,
Unilever is a great stock but also not really cheap. The current P/E is at
19.34 and the forward P/E is 15.80. The yield is at 3.25%, that’s ok in my
view. You might think that I am betting on the foods and consumer sector and a strong
gaining momentum. That’s not right. I believe that the sector has great values
for long-term investors. Most of the best and safest dividend stocks come from
the consumer and foods sector.
The full
DYPI portfolio is up 1.34% since the funding date. The stocks alone generated a
return of 4.56%. That’s a slightly underperformance but the volatility was also
much lower. What do you think about Unilever? Do you own some shares of the
company or do you like competitors of Unilever much more? Let me know by leaving
a comment.
The income perspective:
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Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
N/A
|
4.17
|
|
28.90
|
50
|
$64.00
|
$1,534.50
|
|
|
LMT
|
Lockheed Martin C
|
10.53
|
4.72
|
|
92.72
|
20
|
$83.00
|
$1,760.20
|
|
INTC
|
Intel Corporation
|
9.86
|
4.21
|
|
21.27
|
50
|
$44.25
|
$1,050.00
|
|
MCD
|
McDonald's Corpor
|
17.71
|
3.03
|
|
87.33
|
15
|
$43.05
|
$1,423.05
|
|
WU
|
Western Union Com
|
7.26
|
2.9
|
|
11.95
|
100
|
$42.50
|
$1,466.00
|
|
PM
|
Philip Morris Int
|
17.5
|
3.63
|
|
85.42
|
20
|
$65.58
|
$1,809.00
|
|
JNJ
|
Johnson & Johnson
|
19.56
|
3.18
|
|
69.19
|
20
|
$48.00
|
$1,509.60
|
|
MO
|
Altria Group Inc
|
16.85
|
4.9
|
|
33.48
|
40
|
$68.00
|
$1,387.60
|
|
SYY
|
Sysco Corporation
|
17.37
|
3.45
|
|
31.65
|
40
|
$43.60
|
$1,264.40
|
|
DRI
|
Darden Restaurant
|
13.53
|
4.08
|
|
46.66
|
30
|
$57.90
|
$1,420.80
|
|
CA
|
CA Inc.
|
12.72
|
3
|
|
21.86
|
50
|
$37.50
|
$1,251.00
|
|
PG
|
Procter & Gamble
|
17.19
|
2.97
|
|
68.72
|
25
|
$56.20
|
$1,893.75
|
|
KRFT
|
Kraft Foods Group
|
14.32
|
4.26
|
|
44.41
|
40
|
$80.00
|
$1,876.00
|
|
MAT
|
Mattel Inc.
|
18.15
|
3.08
|
|
36.45
|
40
|
$49.60
|
$1,612.80
|
|
PEP
|
Pepsico Inc. Com
|
19.33
|
2.93
|
|
70.88
|
20
|
$42.56
|
$1,452.00
|
|
KMB
|
Kimberly-Clark Co
|
20.57
|
3.26
|
|
86.82
|
15
|
$44.40
|
$1,363.50
|
|
COP
|
ConocoPhillips Co
|
8.61
|
4.56
|
|
61.06
|
20
|
$52.80
|
$1,157.40
|
|
GIS
|
General Mills In
|
15.72
|
3.04
|
|
42.13
|
30
|
$38.85
|
$1,278.00
|
|
UL
|
Unilever PLC Comm
|
19.88
|
3.25
|
|
39.65
|
35
|
$54.29
|
$1,387.75
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$1,016.08
|
$27,897.35
|
|
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Average Yield
|
3.64%
|
|
|
|
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|
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Yield On Cost
|
3.82%
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