My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2011 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 | 10.00% |
| 2017 Goal | 30,000 | 5.80% |
| 2011 Goal | 15,500 | 4.70% |
| December/2010 | 11,407 | 4.55% |
| Purchases YTD | 5,341 | -0.25% |
| Div. Changes YTD | 657 | 0.12% |
| Sales YTD | (1,753) | 0.04% |
| October/2011 | 15,652 | 4.46% |
| Purchases | 602 | -0.06% |
| Div. Changes | 36 | 0.02% |
| Sales | (271) | 0.02% |
| September/2011 | 15,285 | 4.48% |
The above information covers the current month and year-to-date through the current month.
Click here for a Detailed Historical Progress Table.
For the month, annualized dividend income increased $367, and Yield on Cost (YOC) was down 0.02%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:
Purchases: The $602 increase in annual dividend income and (-0.06%) decrease in YOC related to the following purchases (yield at the time of purchase):
- $139 Nucor Corporation (NUE) 4.6%
- $82 Johnson & Johnson (JNJ) 3.5%
- $116 Intel Corporation (INTC) 3.6%
- $107 Pepsico, Inc. (PEP) 3.3%
- $96 Microsoft Corporation (MSFT) 3.0%
- $62 Wal-Mart Stores Inc. (WMT) 2.7%
All the above purchases lowered my YOC, except NUE. As noted in earlier updates, I generally expect YOC to drop in most months since new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset the decline.
Dividend Changes: The $36 increase in annual dividend income and 0.02% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- ($7) U.S. Preferred Stock Index (PFF) $2.56a>$2.54a
- $20 Illinois Tool Works Inc. (ITW) $0.34q>$0.36q
- $9 Leggett & Platt, Incorporated (LEG) $0.27q>$0.28q
- $4 Cincinnati Financial Corp. (CINF) $0.40q>$0.4025q
- $1 Realty Income Corp. (O) $0.14487m>$0.14518m
- $9 Alerian MLP Infrastructure ETN (MLPI) $1.55a>$1.57a
Sales: In October, I sold 78% of my position in Automatic Data Processing, Inc. (ADP) at a substantial gain. As a result of its increased price, the current yield had fell to an unacceptable level.
In October, I reached my goal of $15,500 in annualized dividend income by December 31, 2011. I plan to use the excess income between now and the end of the year to reduce positions in higher yielding and higher risk stocks.
That's it for this time. The next monthly progress update will be early December.
Full Disclosure: Long all the aforementioned securities. See a list of all my dividend growth holdings here.
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(Photo: sanja gjenero)
Tags: [NUE] [JNJ] [INTC] [PEP] [MSFT] [WMT] [PFF] [ITW] [LEG] [CINF] [O] [MLPI]