Kimberly Clark
(KMB) was my latest choice when I thought about what kind of stock should be
the next buy for my Dividend Yield Passive Income Portfolio DYPI. The portfolio
has now 16 stocks and was funded virtual with $100,000 on October 03, 2012.
Since
the date
of funding, I put every Friday one great dividend growth stock into the
portfolio. The total purchasing amount was $22,730.35 which gives me a
total estimated dividend income of $734.93. Not enough, I like to
increase the number of stocks
to a total of 50-70 by the end of this year.
Stock
acquisitions shouldn’t be a big problem. Sure stocks are not cheap but high
quality stocks have a high price and you must pay it. Dividends included, I
still have $78,926.55 of free cash to boost my dividend income to a total value
of $3,000 - $4,000 per year.
I
personally have an annulized five-figure dividend income and made most of my private
wealth with dividend growth stocks. One of my trading accounts shows that I
have increased my starting capital by the factor of 6.6 over the recent decade.
Two-third of my income were capital gains and one-third dividend payments.
What I like
to show with the DYPI-Portfolio is that you can make money with dividend stocks
in every market situation. All you need is patience, a focus on high quality
stocks with a broad diversification and a trustful management as well as a
long-term investment horizon.
If you do
so, you will make money by stock trading. I am not sure if I should use this
word "trading" because it is more a strategy of buy and hold.
Why put I
Kimberly-Clark into the DYPI-Portfolio?
First, the
company doesn’t appear often on my screens. That show that the company has not yet
attractive fundamentals in anyway. KMB is not cheap, the current P/E ratio is
at 18.28 and forward P/E is at 15.56. Earnings per share are expected to grow
by 6.69 for the next year and 9.37 percent for the upcoming five years.
 |
| Earnings and Dividends Of Kimberly-Clark |
What makes Kimberly-Clark?
Kimberly-Clark
engages in manufacturing and marketing health care products worldwide. The
company operates in four segments: Personal Care, Consumer Tissue, K-C
Professional and Other, and Health Care. The Personal Care segment manufactures
and markets disposable diapers, training and youth pants, swimpants, baby
wipes, feminine and incontinence care products, and related products under the
various brand names, including Huggies, Pull-Ups, Little Swimmers, GoodNites,
Kotex, Lightdays, Depend, and Poise.
Half
of the revenues came from the Americans region, 15.42 percent from
Europe, 1.81 percent from Australia and 26.79 percent from Asia.
I bought 15
stocks with a total value of $1,302.30. This buy will give me more stability to my
DYPI-Portfolio because KMB is a stock with a very low beta ratio (Beta: 0.3).
The whole
portfolio is 0.82 percent up since the funding date. That is not much because the broad market,
measured with the S&P500, increased during the same period 3.08 percent.
The Dow Jones was up 1.3 percent.
However,
the
return is so low because I have still a huge amount of not invested
capital. The
invested capital gained 3.18 and beat the return of the S&P 500. I
ever told that this strategy will underperform if the market goes
sharply up. But this not what I like to show. I don't want to teach you
how to make fast money and to get quick rich. I like to show you how to
make money with solid dividend growth stocks over a long period. This
could result in a yearly double-digit return, a performance that I have
realized over the recent decade.
 |
| Lastest Transactions of the Portfolio (Click to enlarge) |
 |
| Portfolio Overview (Click to enlarge) |
What do you
think about the Dividend Yield Passive Income Portfolio? Do you have some
stocks? Let me know and share your thoughts in the comment box below.
Sym
|
Name
|
P/E Ratio
|
Dividend Yield
|
Buy
|
# Shrs
|
Income
|
Value
|
|
TRI
|
N/A
|
4.24
|
28.90
|
50
|
$64.00
|
$1,506.00
|
||
LMT
|
Lockheed Martin C
|
10.87
|
4.38
|
92.72
|
20
|
$83.00
|
$1,879.40
|
|
INTC
|
Intel Corporation
|
9.89
|
3.84
|
21.27
|
50
|
$43.50
|
$1,062.50
|
|
MCD
|
McDonald's Corpor
|
17.28
|
3.13
|
87.33
|
15
|
$43.05
|
$1,383.90
|
|
WU
|
Western Union Com
|
6.65
|
3.16
|
11.95
|
100
|
$42.50
|
$1,341.00
|
|
PM
|
Philip Morris Int
|
17.82
|
3.68
|
85.42
|
20
|
$65.58
|
$1,799.60
|
|
JNJ
|
Johnson & Johnson
|
23.88
|
3.29
|
69.19
|
20
|
$48.00
|
$1,464.60
|
|
MO
|
Altria Group Inc
|
17.19
|
5.15
|
33.48
|
40
|
$68.00
|
$1,330.80
|
|
SYY
|
Sysco Corporation
|
16.64
|
3.48
|
31.65
|
40
|
$43.60
|
$1,258.80
|
|
DRI
|
Darden Restaurant
|
12.97
|
4.25
|
46.66
|
30
|
$57.90
|
$1,361.40
|
|
CA
|
CA Inc.
|
12.29
|
4.13
|
21.86
|
50
|
$50.00
|
$1,228.50
|
|
PG
|
Procter & Gamble
|
19.41
|
3.23
|
68.72
|
25
|
$56.20
|
$1,748.50
|
|
KRFT
|
Kraft Foods Group
|
14.32
|
1.07
|
44.41
|
40
|
$20.00
|
$1,882.04
|
|
MAT
|
Mattel Inc.
|
15.67
|
3.28
|
36.45
|
40
|
$49.60
|
$1,521.20
|
|
PEP
|
Pepsico Inc. Com
|
19.29
|
2.94
|
70.88
|
20
|
$42.56
|
$1,449.60
|
|
KMB
|
Kimberly-Clark Co
|
18.21
|
3.43
|
86.82
|
15
|
$44.40
|
$1,302.30
|
|
$734.93
|
$23,520.14
|
|||||||
Average Yield
|
3.12%
|
|||||||
Yield On Cost
|
3.23%
|
* Dividend income is calculated on dividend of the recent 4 quarters and provided by yahoo.finance.
By LTI
By LTI