Rogers Communications: My Latest Dividend Find

Last Thursday, I placed 30 shares of the Canadian wireless communication company Rogers Communications, Inc.(RCI) in the Dividend Yield Passive Income Portfolio (DYPI).

Rogers operates as a communications and media company in Canada. The company's Wireless segment offers voice and high-speed data services, as well mobile devices and accessories. It markets its products and services under the Rogers, Fido, and chatr brands. Its Cable segment offers cable television, high-speed Internet access, and cable telephony services. As at December 31, 2012, this segment had 2.2 million television subscribers; and 1.9 million high-speed Internet subscribers, as well as provided home phone services to approximately 1.1 million customers.

I like stocks with a cable business. At the stock market, they are classified as CATV Sytems. They give you a great stability due to subscriptions. Comcast or DIRECTV are also two great company from the United States. Cable companies are deeply integrated within an economy. They have normally a high debt and are inflexible in terms of growth but they are part of the economy and deliver solid return to pay down the debt. Canada is a great country with better financial ratios than the United States. The population is growing in both countries and will go forward. That's why I like cable stocks.

The current dividend of Rogers amounts to 3.33 percent and the P/E ratio is 15.76. Earnings of the company are expected to grow by 4.3 for the next year and 9.63 percent for the next five years. CATV System stocks have a higher forecasted growth.

The 30 shares were bought at cost of $51.06 and reduced my cash by $1,536.80. As of now I still have $62,997.85 for further dividend stock acquisitions.

The DYPI-Portfolio was funded virtual with $100,000 on October 03, 2012. Since the date of funding, stock holdings are up 8.74 percent or $3,260.80.


Due to the high cash amount (60 percent is still not invested) the full portfolio performance is only 3.50 percent.

Each week I plan to put one stock holing into the DYPI-Portfolio. My aim is to build a passive income of $3,000 - $4,000 by the end of the year. Dividend payments should come from 50 to 70 stocks. The average portfolio yield is now at 3.32 percent and the yield on cost, the yield on my cost basis is at 3.62 percent because of the capital gains.

The new stake will give me $48.69 in additional yearly dividends. The full dividend income is now estimated at $1,357.76.