* Pocket Change Portfolio - August 2010

The Pocket Change Portfolio (PCP) was first introduced on September 13, 2008 as a real money dividend income portfolio funded by the "pocket change" earned from my various online endeavors. Each month I report on the portfolio's progress and update its holdings.

Dividends Received

Total dividends received during the month were $190.22, consisting of:

• $7.74 Vanguard Intermediate-Term Bond ETF (BIV)
• $12.95 Vanguard Long-Term Bond ETF (BLV)
• $5.15 PowerShares Emerging Mkt Debt (PCY)
• $69.72 AT&T, Inc. (T) | Analysis
• $9.36 Nucor Corporation (NUE)
• $15.90 Colgate-Palmolive Co. (CL) | Analysis
• $41.46 Abbott Laboratories (ABT) | Analysis
• $27.94 Procter & Gamble Co. (PG) | Analysis

Dividend Stock Purchases

The following securities were purchased during the month:

• 26 Shares General Dynamics Corp. (GD) providing $43.68 in annual dividend income [Analysis]
• 44 Shares Automatic Data Processing, Inc. (ASP) providing $59.84 in annual dividend income [Analysis]

Annualized Dividend Income

Including the above purchases, my annual PCP dividend income is now $2,186.66 at the current dividend rates. This is up $102.94 from last month's $2,083.72 amount. The PCP has never had a monthly decline in annualized dividend income.

Portfolio Returns

• Month: 2.30%
• Year-to-date: 4.97%
• Life-to-date: 10.08% (annualized)

My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be mid-October.

(Photo: sanja gjenero)