Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in September, extending the streak to 3 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 32 of the last 34 months.My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2010 Investing Goals post. Below is an updated version of the table found in the original post.
| Description | Dividend Income Annualized | Yield on Cost |
| 2027 Goal | 110,000 | 20.00% |
| 2017 Goal | 30,000 | 10.00% |
| 2010 Goal | 9,500 | 5.00% |
| December/2009 | 7,274 | 4.84% |
| Purchases YTD | 3,722 | -0.18% |
| Div. Changes YTD | -76 | -0.04% |
| Sales YTD | -788 | 0.00% |
| September/2010 | 10,132 | 4.62% |
| Purchases | 1,017 | 0.01% |
| Div. Changes | 28 | 0.02% |
| Sales | -545 | -0.03% |
| August/2010 | 9,635 | 4.62% |
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $500, and Yield on Cost (YOC) was flat (0.00%). This month's changes were a net of new purchases and dividend changes. Let's examine each of the these categories:
Purchases: The $1,017 increase in annual dividend income and 0.01% decrease in YOC related to the following purchases (yield at the time of purchase):
- $441 Universal Health Realty Income Trust (UHT) 7.36%
- $72 Colgate-Palmolive Co. (CL) 2.81%
- $137 Abbott Laboratories (ABT) 3.41%
- $119 Medtronic, Inc. (MDT) 2.68%
- $248 Alerian MLP Infrastructure ETN (MLPI) 5.62%
Only UHT and MLPI increased my YOC, while three securities lowered it. As noted in earlier updates, I generally expect YOC to drop each month since most new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset it.
Dividend Changes: The $28 increase in annual dividend income and the 0.02% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- $12 U.S. Preferred Stock Index (PFF) $2.26a>$2.36a
- ($2) Intermediate-Term Bond ETF (BIV) $3.39a>$3.38a
- ($5) Invest Grade Corp Bond (LQD) $5.48a>$5.41a
- $6 Chevron Corp. (CVX) $0.68q>$0.72q
- $20 Harleysville Group Inc. (HGIC) $0.325q>$0.36q
- ($3) Emerging Markets Sovereign Debt (PCY) $1.64a>$1.63a
Sales: The $578 decrease in annual dividend income and the 0.03% decrease in YOC related to the following sales:
- ($578) Long-Term Bond Index ETF (BLV)
That's it for this time. The next monthly progress update will be early November.
(Photo: sanja gjenero)
