Saturday, July 9, 2011

Dividend Income Progress Update - June 2011

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in May, extending the streak to 12 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 41 of the last 43 months.

My goals were defined in this December 1, 2007 Investing Goals post and 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 2,683 -0.15%
Div. Changes YTD 452 0.07%
Sales YTD (777) 0.02%
May/2011 13,765 4.49%
Purchases 285 0.00%
Div. Changes 93 0.03%
Sales - 0.00%
May/2011 13,387 4.46%

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 $378, and Yield on Cost (YOC) was up 0.03%. This month's changes were a net of new purchases and dividend changes. There were no sales in June. Let's examine each of the these categories:

Purchases: The $285 increase in annual dividend income and no change (0.00%) in YOC related to the following purchases (yield at the time of purchase):

- $124 Cincinnati Financial Corp. (CINF) 5.4%
- $85 ConocoPhillips (COP) 3.7%
- $76 Genuine Parts Company (GPC) 3.2%

All the above purchases, except CINF, lowered my YOC. 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 $93 increase in annual dividend income and the 0.03% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- ($14) U.S. Preferred Stock Index (PFF) $2.33a>$2.29a
- $9 Chevron Corp. (CVX) $0.72a>$0.78a
- $31 United Technologies Corp. (UTX) $0.425q>$0.48q
- $29 Johnson & Johnson (JNJ) $0.54q>$0.57q
- $29 Genuine Parts Company (GPC) $0.41q>$0.45q
- $9 Pepsico, Inc. (PEP) $0.48q>$0.515q

Sales: There were no sales in June.

After June, I am still on track to reach my goal of $15,500 in annualized dividend income by December 31, 2011.

That's it for this time. The next monthly progress update will be early August.

(Photo: sanja gjenero)



Tags: [CINF] [COP] [GPC] [PFF] [CVX] [UTX] [JNJ] [PEP]

4 comments:

  1. These are my favorite articles. Very, very inspiring.

    Take care.

    ReplyDelete
  2. good article. i read about YOC from your links. Although YOC is directly proportional to yield I feel one needs to consider the stock price as well in the equation. Eg. in the example of RC vs KO, KO's stock price is now declined but dividends increased which meant YOC increased. Principal on original investment decreased though.

    ReplyDelete
  3. 41 out of 43, that's a very good track record! I like your recent purchases. I too added COP recently and I think it has good prospects going forward.

    Very inspiring!

    ReplyDelete
  4. Inq: YOC is best used to judge if a stock is growing its dividend over time and to explain to fixed income investors why dividend stocks are better.

    Dividend Mantra and MoneyCone: Thanks for your kind words.

    Best Wishes,
    D4L

    ReplyDelete

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