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