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Technology & Industrial Portfolio 08-18-14

Technology & Industrial Portfolio 08-18-14

The Q2-14 dividend is used for yield calculations. This is another sector where the fiscal and calendar years are not in sync. ACN and BBL pay dividends only twice per year - and that quirk is accounted for in the yield calculation and the dividend/EPS ratio. CAT and DE have increased their Q3-14 dividend - which is temporarily encoded as the Q2-14 dividend.


    12-31-13 Current Dividend Current Div/EPS Percent Change
Company   Price Price /Quarter Yield Ratio Price Pr+Div 14 EPS Target Div*

Accenture PLC ACN 82.22 79.81 0.930 2.33 41% -2.93 -1.80 0.44 5.53 14.81
Apple Inc. AAPL 561.02 694.12 3.290 1.90 30% 23.72 25.48 1.37 24.86 7.87
Applied Materials, Inc. AMAT 17.68 22.10 0.100 1.81 38% 25.00 26.13 -1.85 29.49 0.00
Automatic Data Processing ADP 80.80 83.25 0.480 2.31 61% 3.03 4.22 -0.95 8.05 10.34
Broadcom Corp. BRCM 29.65 38.13 0.120 1.26 17% 28.60 29.41 14.06 37.76 9.09
Cisco Systems, Inc. CSCO 22.43 24.63 0.190 3.09 37% 9.81 12.35 3.03 11.96 11.76
International Business Machines IBM 187.57 189.36 1.100 2.32 25% 0.95 2.13 -0.61 0.90 15.79
Intel Corporation INTC 25.95 34.41 0.225 2.62 41% 32.60 34.34 15.34 37.76 0.00
Microchip Technology Inc. MCHP 44.75 47.03 0.355 3.02 58% 5.09 6.68 1.24 9.87 0.85
MicroSoft Corporation MSFT 37.41 45.11 0.280 2.48 41% 20.58 22.08 1.87 29.05 21.74
Maxim Integrated Products, Inc. MXIM 27.90 30.80 0.260 3.38 63% 10.39 12.26 -1.79 3.26 8.33
National Instruments Corporation NATI 32.02 32.98 0.150 1.82 67% 3.00 3.94 -6.32 2.13 7.14
QUALCOMM Incorporated QCOM 74.25 75.03 0.420 2.24 32% 1.05 2.18 5.77 8.89 20.00
Texas Instruments Inc. TXN 43.91 47.56 0.300 2.52 50% 8.31 10.36 12.09 23.63 7.14
BHP Billiton plc BBL 62.12 69.52 1.180 3.39 59% 11.91 13.81 -17.62 8.67 3.51
Caterpillar Inc. CAT 90.81 106.98 0.710 2.65 45% 17.81 20.15 8.09 25.00 18.33
Deere & Company DE 91.33 86.11 0.600 2.79 29% -5.72 -4.40 0.24 1.42 17.65
E. I. du Pont de Nemours & Co. DD 64.97 65.87 0.450 2.73 45% 1.39 2.77 -6.73 6.98 0.00
General Dynamics Corp. GD 95.55 121.18 0.620 2.05 33% 26.82 28.77 4.43 36.12 10.71
General Electric Company GE 28.03 26.07 0.220 3.38 52% -6.99 -5.42 -1.75 3.15 15.79
Honeywell International Inc. HON 91.37 95.26 0.450 1.89 32% 4.26 5.24 0.00 13.10 9.76
3M Company MMM 140.25 144.12 0.855 2.37 46% 2.76 3.98 0.27 11.36 34.65
Monsanto Company MON 116.55 119.43 0.430 1.44 33% 2.47 3.21 -0.76 17.48 14.67
United Technologies Corp. UTX 113.80 108.09 0.590 2.18 34% -5.02 -3.98 0.59 6.94 10.28

Average         2.42 44 % 9.12 10.58 1.27 15.14 13.11

The SPY [S&P 500 EFT] is up 6.86% year to date.
The SPY [S&P 500 EFT] - with unreinvested dividends - is up 7.81% year to date.
With the 10 Treasury at 2.38% and the sector average yield [on Q2 Divs] at 2.42% - the spread is 14 basis points.
* The change in the dividend is for the last twelve months and not year to date.

Click to enlarge

Dividend dates are:

ACN: 05-14-14 AAPL: 08-13-14 AMAT: 09-10-14 ADP: 09-30-14 BRCM: 06-15-14
CSCO: 06-22-14 IBM: 09-09-14 INTC: 08-31-14 MCHP: 09-03-14 MSFT: 09-10-14
MXIM: 09-03-14 NATI: 09-01-14 QCOM: 09-23-14 TXN: 08-17-14
BBL: 3-25-14 CAT: 08-19-14 DE: 07-31-14 DD: 09-11-14 GD: 08-13-14
GE: 07-24-14 HON: 09-09-14 MMM: 09-11-14 MON: 10-30-14 UTX: 09-09-14
Click to enlarge

Price/Earnings Ratios 08-18
Companies that have fiscal years that match calendar years: BRCM, IBM, INTC, NATI, TXN, CAT, DD, GD, GE, HON, MMM & UTX


  EPS / Share % EPS Growth Price/EPS 14 EPS Range YearEnd
Co. 2011 2012 2013 2014 2015 11-12 12-13 13-14 14-15 2013 2014 2015 High Low Range

ACN 3.40 3.84 4.21 4.53 4.93 12.94 9.64 7.60 8.83 18.96 17.62 16.19 4.56 4.50 1.32% Aug
AAPL 27.68 44.15 39.75 44.31 49.21 59.50 -9.97 11.47 11.06 17.46 15.67 14.11 45.64 42.77 6.48% Sep
AMAT 1.30 0.75 0.59 1.06 1.35 -42.31 -21.33 79.66 27.36 37.46 20.85 16.37 1.18 0.99 17.92% Oct
ADP 2.52 2.72 2.89 3.14 3.52 7.94 6.25 8.65 12.10 28.81 26.51 23.65 3.16 3.13 0.96% Jun
BRCM 2.79 2.92 2.72 2.84 3.26 4.66 -6.85 4.41 14.79 14.02 13.43 11.70 2.96 2.25 25.00% Dec
CSCO 1.62 1.85 2.02 2.04 2.16 14.20 9.19 0.99 5.88 12.19 12.07 11.40 2.06 2.03 1.47% Jul
IBM 13.38 15.25 16.28 17.90 19.83 13.98 6.75 9.95 10.78 11.63 10.58 9.55 18.07 17.47 3.35% Dec
INTC 2.45 2.13 1.89 2.18 2.29 -13.06 -11.27 15.34 5.05 18.21 15.78 15.03 2.21 1.76 20.64% Dec
MCHP 2.35 1.89 1.89 2.45 2.82 -19.57 0.00 29.63 15.10 24.88 19.20 16.68 2.88 2.68 8.16% Mar
MSFT 2.69 2.73 2.65 2.72 3.20 1.49 -2.93 2.64 17.65 17.02 16.58 14.10 2.76 2.61 5.51% Jun
MXIM 1.72 1.57 1.77 1.65 1.98 -8.72 12.74 -6.78 20.00 17.40 18.67 15.56 1.71 1.66 3.03% Jun
NATI 0.94 0.78 0.64 0.89 1.12 -17.02 -17.95 39.06 25.84 51.53 37.06 29.45 0.85 0.79 6.74% Dec
QCOM 3.20 3.71 4.51 5.32 5.56 15.94 21.56 17.96 4.51 16.64 14.10 13.49 5.27 5.07 3.76% Sep
TXN 2.20 1.64 1.91 2.41 2.75 -25.45 16.46 26.18 14.11 24.90 19.73 17.29 2.50 2.12 15.77% Dec
BBL 8.54 6.42 4.42 4.02 4.64 -24.82 -31.15 -9.05 15.42 15.73 17.29 14.98 5.37 2.70 66.42% Jun
CAT 6.79 8.90 5.79 6.28 7.22 31.08 -34.94 8.46 14.97 18.48 17.04 14.82 6.51 5.87 10.19% Dec
DE 6.63 7.63 9.09 8.37 6.90 15.08 19.13 -7.92 -17.56 9.47 10.29 12.48 8.83 7.94 10.63% Oct
DD 3.95 3.33 3.88 4.02 4.64 -15.70 16.52 3.61 15.42 16.98 16.39 14.20 4.40 3.95 11.19% Dec
GD 7.23 6.48 7.03 7.55 8.08 -10.37 8.49 7.40 7.02 17.24 16.05 15.00 7.50 7.10 5.30% Dec
GE 1.37 1.52 1.64 1.68 1.83 10.95 7.89 2.44 8.93 15.90 15.52 14.25 1.78 1.65 7.74% Dec
HON 4.04 4.48 4.97 5.54 6.17 10.89 10.94 11.47 11.37 19.17 17.19 15.44 5.60 5.50 1.81% Dec
MMM 5.91 6.32 6.72 7.48 8.26 6.94 6.33 11.31 10.43 21.45 19.27 17.45 7.55 7.39 2.14% Dec
MON 2.96 3.70 4.56 5.22 6.14 25.00 23.24 14.47 17.62 26.19 22.88 19.45 5.45 5.12 6.32% Aug
UTX 5.48 5.35 6.21 6.86 7.52 -2.37 16.07 10.47 9.62 17.41 15.76 14.37 6.90 6.75 2.19% Dec

Average         2.13 2.28 12.48 11.93 20.38 17.73 15.71      

Click to enlarge

Yield + CAGR Total Return Expectations


Company Q2-14 My Total Bonds Acc My Total Rtn Consensus Pr Impl Div
    Yield CAGR Return Rate Rate RRRs - RRR Ratings CAGR / EPS

Accenture PLC ACN 2.33% 8.50% 10.83% none 1.5 10.20 0.63 2.2 7.87 41.06
Apple Inc. AAPL 1.90% 10.00% 11.90% AA+ 2.2 11.00 0.90 2.0 9.10 29.70
Applied Materials, Inc. AMAT 1.81% 8.00% 9.81% A- 1.2 10.50 -0.69 2.3 8.69 37.74
Automatic Data Processing ADP 2.31% 8.00% 10.31% none 1.8 10.50 -0.19 2.6 8.19 61.15
Broadcom Corp. BRCM 1.26% 9.00% 10.26% A- 2.0 10.70 -0.44 2.3 9.44 16.90
Cisco Systems, Inc. CSCO 3.09% 7.50% 10.59% AA- 1.7 10.20 0.39 2.4 7.11 37.25
International Business Machines IBM 2.32% 8.50% 10.82% AA- 1.0 10.00 0.82 2.8 7.68 24.58
Intel Corporation INTC 2.62% 5.50% 8.12% A+ 2.7 11.50 -3.38 2.7 8.88 41.28
Microchip Technology Inc. MCHP 3.02% 3.00% 6.02% none 1.0 9.00 -2.98 2.3 5.98 57.96
MicroSoft Corporation MSFT 2.48% 8.20% 10.68% AAA 1.8 10.20 0.48 2.6 7.72 41.18
Maxim Integrated Products, Inc. MXIM 3.38% 7.40% 10.78% BBB+ 1.0 10.50 0.28 2.3 7.12 63.03
National Instruments Corporation NATI 1.82% 7.00% 8.82% none 5.0 12.00 -3.18 2.5 10.18 67.42
QUALCOMM Incorporated QCOM 2.24% 9.20% 11.44% none 1.0 10.00 1.44 2.0 7.76 31.58
Texas Instruments Inc. TXN 2.52% 8.00% 10.52% A+ 3.0 11.00 -0.48 2.6 8.48 49.79
BHP Billiton plc BBL 3.39% 7.00% 10.39% BBB+ 5.0 12.50 -2.11 1.0 9.11 58.71
Caterpillar Inc. CAT 2.65% 8.20% 10.85% A 4.0 11.20 -0.35 2.4 8.55 45.22
Deere & Company DE 2.79% 8.30% 11.09% A 2.5 11.00 0.09 3.2 8.21 28.67
E. I. du Pont de Nemours & Co. DD 2.73% 6.00% 8.73% A 4.5 10.00 -1.27 2.7 7.27 44.78
General Dynamics Corp. GD 2.05% 8.20% 10.25% A 2.5 10.50 -0.25 2.1 8.45 32.85
General Electric Company GE 3.38% 7.50% 10.88% AA+ 1.2 10.00 0.88 2.3 6.62 52.38
Honeywell International Inc. HON 1.89% 9.80% 11.69% A 1.0 10.00 1.69 2.0 8.11 32.49
3M Company MMM 2.37% 7.90% 10.27% AA- 1.0 10.00 0.27 2.6 7.63 45.72
Monsanto Company MON 1.44% 10.00% 11.44% BBB+ 1.4 10.50 0.94 2.0 9.06 32.95
United Technologies Corp. UTX 2.18% 9.00% 11.18% A 1.8 10.40 0.78 2.0 8.22 34.40

Average   2.42% 7.90% 10.32%         2.33

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Disclosure: The author is long AAPL, CSCO, IBM, QCOM.