The Clorox Co (CLX), Mattel, Inc. (MAT), Lockheed Martin Corporation (LMT): Completing The Ultimate Dividend Growth Portfolio

The high yield is the savior of this stock. Since dividend growth will likely be slow the 4.5% yield is critical. It’s still unclear exactly how Lockheed will be affected by the spending cuts, and it could turn out far better for the company than some people think. Analysts are still expecting earnings growth in the coming years, and if that’s the case the dividend should be able to grow much faster.

Based on the current share price I’ll add 49 shares of Lockheed Martin Corporation (NYSE:LMT) to The Ultimate Dividend Growth Portfolio for a total cost basis of $4,988.20. This position will generate a projected annual dividend of $225.40.

Complete…for now

Adding these three positions uses up the rest of the cash in the portfolio, so I won’t be adding more stocks any time soon. As the dividends begin rolling in I’ll reinvest that money in either stocks already in the portfolio or new dividend growth stocks which look appealing.

The portfolio is up about 4% in just about a month, impressive since it wasn’t fully invested until now. Big gains from Corning, Microsoft Corporation (NASDAQ:MSFT), and Intel Corporation (NASDAQ:INTC), as well as Apple Inc. (NASDAQ:AAPL)’s recovery, have led the portfolio higher. The yield on cost of the portfolio is 3.39%, and the goal is to grow that number as fast as possible.

The portfolio can be tracked at any time by going here. Until next time, here’s what the portfolio looks like today.

The article Completing The Ultimate Dividend Growth Portfolio originally appeared on Fool.com and is written by Timothy Green.

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