GlaxoSmithKline For The Dividend Yield Passive Income Portfolio

The British drug manufacturer GlaxoSmithKline is the next stock purchase for my Dividend Yield Passive Income Portfolio (DYPI). I bought 30 shares at $52.16, the ADR version of the British stock.

The total purchase amount was $1,569.80 and represents roughly 1.5 percent of the full portfolio value.




GlaxoSmithKline discovers, develops, manufactures, and markets pharmaceutical products, over-the-counter medicines, and health-related consumer products worldwide. It offers pharmaceutical products in various therapeutic areas comprising respiratory, anti-virals, central nervous system, cardiovascular and urogenital, metabolic, antibacterials, oncology and emesis, dermatology, rare diseases, immuno-inflammation, vaccines, and HIV. The company provides prescription medicines to treat a range of conditions, including infections, depression, skin conditions, asthma, heart and circulatory disease, and cancer.

GSK is one of the world’s leading drug manufactures with a solid non pharmaceutical division. It sells also oral care products and is the second biggest global player behind Colgate. The current dividend yield is above the 5 percent mark at 5.29 percent and the price to earnings ratio amounts to 18.90. The stock started to gain more momentum which resulted in a year to date gain of 21.81 percent.


The new GSK stake gives me $70.35 dividend income. The full portfolio dividend income is now estimated at $1,405.61. I plan to increase the total number of stocks by the end of the year to 50-70. As a result, the dividend income should grew to $3,000 to 4,000.

All I need to do is to hunt further for stocks with a yield over 3 percent. As of now, the acquisition process was successful done with a yield on cost of 3.26%.

The DYPI-Portfolio was funded virtual on October 04, 2012 with 100k. Each week, I try to put one stock into the portfolio with a solid dividend growth history as well as an attractive yield. It’s a slow buying process but in line with my strategy to show you how long-term dividend investing works.
Not all stocks will deliver a great performance over the time but I believe that the huge amount of stockholdings should result in an adequate annual return of at least 8 percent of which 3 percent are dividends.

Because of the slow purchase process and the high cash amount, the full portfolio performance is up 4 percent since the date of funding. A deeper look at the stockholdings shows that the core performance is at 8.46 percent, a value better than the Dow Jones, Nasdaq and S&P 500.