9/22/2013

First Electric Utility In My Dividend Yield Passive Income Portfolio: IdaCorp

I hit the button for my first eclectic utility stock buy. It was the $2.4 billion corporate IdaCorp that I purchased at $47.94. The total acquisition amount was $963. It’s the lowest weighted stock holding in my Dividend Yield Passive Income Portfolio.

Ida pays 3.17% dividends and hikes its rates recently by 13.2 percent. The new stake will increase my current passive dividend income by $30 bucks or so.

With a current P/E of 12.78 and forward P/E of 14.03, the utility is not expensive in my view. For sure, the market cap is small but IDA is one of the electric utilities with the lowest debt ration within its industry. These is a modest potential to grow the balance sheet and boost sales.

Latest Portfolio Transactions (Click to enlarge)

Dividend Yield Passive Income Portfolio I (Click to enlarge)

Dividend Yield Passive Income Portfolio II (Click to enlarge)

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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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Over the full year, the expected dividend income amounts to $2,441.92. With around $30,000 in deposited cash, it’s still possible to reach the $3,000 by the end of this year.

The portfolio holdings are up since the date of funding by 8.91 percent. Because of the slow purchase process and high cash amounts over the recent year, the full portfolio performance is only up 7.38 percent.

Dividends and Earnings of IdaCorp. 

As of now, the strategy produced an underperformance compared to the overall market but the current situation is not sustainable on the market. Bernanke and the Fed manupulates the stock market. More high-fly momentum stocks like Tesla and Facebook lead the market. Dividend paying stocks are not hot or popular right now. They are boring for many investors. But not for me and I hope you think the same about the philosophy of dividend growth investing.

The goal of this portfolio is to show how to build up a passive income stream for normal investors with small investment budgets. To buy a stock each week for $1,000 bucks is possible for many people with a solid job and a high savings rate.

Portfolio Performance (Click to enlarge)

Here is the income perspective of the portfolio


Sym
Name
P/E Ratio
Dividend Yield
Buy
# Shrs
Income
Value
TRI
Thomson Reuters C
26.75
3.69
28.90
50
$64.75
$1,747.00
LMT
Lockheed Martin C
14.62
3.53
92.72
20
$92.00
$2,560.00
INTC
Intel Corporation
12.92
3.76
21.27
50
$45.00
$1,188.45
MCD
McDonald's Corpor
17.93
3.15
87.33
15
$46.20
$1,453.50
WU
Western Union Com
11.89
2.65
11.95
100
$50.00
$1,864.00
PM
Philip Morris Int
17.59
3.8
85.42
20
$68.78
$1,809.40
JNJ
Johnson & Johnson
19.99
2.82
69.19
20
$50.80
$1,793.60
MO
Altria Group Inc
16.36
5.03
33.48
40
$72.00
$1,422.00
SYY
Sysco Corporation
19.66
3.38
31.65
40
$44.40
$1,302.80
DRI
Darden Restaurant
15.73
4.16
46.66
30
$61.50
$1,373.40
CA
CA Inc.
13.42
3.26
21.86
50
$50.00
$1,536.00
PG
Procter & Gamble
20.76
2.91
68.72
25
$58.20
$1,984.75
KRFT
Kraft Foods Group
17.67
3.70
44.41
40
$80.00
$2,161.20
MAT
Mattel Inc.
19.48
3.2
36.45
40
$55.60
$1,721.60
PEP
Pepsico Inc. Com
19.27
2.7
70.88
20
$44.20
$1,634.80
KMB
Kimberly-Clark Co
20.67
3.26
86.82
15
$47.55
$1,443.00
COP
ConocoPhillips Co
11.82
3.77
61.06
20
$52.80
$1,420.00
GIS
General Mills In
17.5
2.81
42.13
30
$41.10
$1,459.80
UL
Unilever PLC Comm
19.53
3.24
39.65
35
$47.01
$1,446.20
NSRGY
NESTLE SA REG SHR
19.28
3.12
68.69
30
$65.31
$2,095.50
GE
General Electric
18.11
3.11
23.39
65
$49.40
$1,560.65
ADP
Automatic Data Pr
25.88
2.33
61.65
25
$43.50
$1,860.75
K
Kellogg Company C
23.4
2.91
61.52
25
$44.50
$1,514.25
KO
Coca-Cola Company
20.7
2.79
38.83
40
$43.80
$1,576.00
RTN
Raytheon Company
13.94
2.6
57.04
20
$42.00
$1,580.00
RCI
Rogers Communicat
11.6
3.9
46.5
50
$84.00
$2,175.50
GPC
Genuine Parts Com
18.41
2.58
77.06
20
$42.12
$1,626.20
TSCDY
TESCO PLC SPONS A
242
3.79
17.08
110
$75.68
$1,987.70
APD
Air Products and
23.48
2.45
85.71
15
$40.50
$1,628.55
GSK
GlaxoSmithKline P
19.13
4.72
52.16
30
$71.13
$1,515.90
WMT
Wal-Mart Stores
14.84
2.37
79.25
20
$36.16
$1,516.60
BTI
British American
16.59
3.85
111.13
23
$96.14
$2,474.11
CHL
China Mobile Limi
11.24
3.9
55.32
25
$55.95
$1,420.00
MMM
3M Company Common
19.03
2.05
110.27
15
$37.43
$1,800.15
TUP
Tupperware Brands
18.66
2.55
80.98
15
$33.30
$1,287.75
IBM
International Bus
13.73
1.86
197.09
16
$57.60
$3,040.32
HAS
Hasbro Inc.
19.94
3.08
44.09
30
$45.60
$1,463.70
T
AT&T Inc.
26.65
5.14
34.47
30
$53.70
$1,029.45
WAG
Walgreen Co. Comm
24.49
2.04
44.25
30
$34.20
$1,665.60
AFL
AFLAC Incorporate
8.64
2.25
59.39
20
$28.00
$1,246.40
TGT
Target Corporatio
15.76
2.31
68.69
32
$48.32
$2,065.60
CSCO
Cisco Systems In
13.23
2.52
25.12
90
$55.80
$2,205.90
DE
Deere & Company C
9.77
2.28
84.11
15
$29.10
$1,257.30
RGR
Sturm Ruger & Co
12.87
3.17
51.65
20
$38.52
$1,239.80
LO
Lorillard Inc Co
14.09
4.79
42.3
30
$65.00
$1,353.30
UNP
Union Pacific Cor
18.32
1.78
154.75
8
$22.88
$1,276.40
IDA
IDACORP Inc. Com
12.89
3.15
47.94
20
$30.40
$958.80














$2,441.92
$77,743.68














Average Yield
3.14%














Yield On Cost
3.43%

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