Sturm Ruger: First Sell-Off In The Dividend Yield Passive Income Portfolio

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.

Dividend Yield Passive Income Portfolio Performance LTD (Click to enlarge)

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.

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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.

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Here is the income perspective of the portfolio

Sym	Name	P/E Ratio	Dividend Yield	Buy	# Shrs	Income	Value
TRI	Thomson Reuters C	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%

6 Dividend Champ's Expected To Grow Earnings By Over 15% For The Next Half Decade

Hey guys, I hope you have a great weekend like I do. I'm sitting in front of my pc and watch on the list of the best dividend paying stock in the United States. 

I'm impressed that Coca Cola and Procter have now yields above the three percent mark. Both are definitely the kings of the Dividend Champions and should be used as minimum yield. If you like to add stocks with a higher risk, debt or lower growth and diversification, you should add a premium yield when you buy those stocks.

Today I've a small focus on growth, yes; I've sorted the 105 Dividend Champions by the highest expected earnings per share growth for the next five years. All of the attached six results have a higher EPS-growth of 15 percent; a huge number in my view. They are a little off the main street but still solid valuated.

The 6 highest growing Dividend Champions are...

6 Dividend Stocks Warren Buffett Added Recently To His $100 Billion Portfolio

Do you like Dividends? I do and you should love them too. 

Dividends are paybacks to shareholders, money that you can use for reinvestments or your daily spendigs. 

But the dividend is not everything you need to look on when you think about investments. 

It doesn’t make sense to buy a high yielding stock with high debt and no growth perspectives. Inflation will destroy your investment in the end.

One very successful investor who has been focused on dividend growth investing is Warren Buffett. I don't recommend covering his investments but Warren has a great idea base for us normal investors from that you can also benefit.

His latest SEC-Filling shows that he has assets which are worth over $100 billion. Around 43 percent of his money is currently invested within the financial sector.

Below is a small overview about his latest dividend buys. Seven of his ten most recent purchases pay a dividend. The best yielding pick was General Electric with a 3.42 yield.

The biggest impact had the Goldman Sachs (GS) transactions with a 2.14 percent change result to his portfolio. 

Nearly of Warren's latest buys are cheaply priced measured by a forward P/E of less than 15.

4 stocks still dominate his asset allocation: Wells Fargo (WFC), Coca Cola (KO), American Express (AXP) and finally IBM (IBM). Each of them has a 10+ percent share in his portfolio. It's a clear signal to buy only those stocks that underlying business you understand.

Warren Buffett's latest dividend purchases are...

8 Dividend Growth Stocks On The Sweet Spot

Out there happening very exciting moments on the market. Due to the recent stock market crash, stocks look a little bit more attractive than weeks before while the total number of potential dividend growers rise steadily.

The fantastic economic recovery of the recent years was the the most important item which helped to grow the total number of stocks with more than 5 years of consecutive dividend growth to 488! I expect that we would hit the 500 mark by the end of this year.

It's great to see that we've more and more opportunities in the dividend growth investing field but if we look at the valuations on the market, we definitely notice that it's still hard to find real bargains.

Some stocks are too expensive, others are cheap but those companies release falling earnings and sales figures or they are overloaded with debt. What we need are long-term dividend growth stocks on the sweet spot.

After the recent sell-off on the market, I screened my database by stocks with a current dividend yield over 3 percent and a low forward P/E of less than 15. In addition, the expected earnings should grow by at least 5 percent (analyst predictions), year by year for the next five fiscals.

Around 30 companies fulfilled these criteria at the moment. I try to highlight some of the best ideas. Below are 8 stocks, sorted by market capitalization.