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Saturday, October 8, 2011

Dividend Income Progress Update - September 2011

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 15 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 44 of the last 46 months.

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 4,739 -0.19%
Div. Changes YTD 621 0.10%
Sales YTD (1,482) 0.02%
September/2011 15,285 4.48%
Purchases 1,551 -0.03%
Div. Changes 40 0.01%
Sales (705) 0.01%
August/2011 14,399 4.49%

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 $886, and Yield on Cost (YOC) was down 0.01%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: The $1,551 increase in annual dividend income and (-0.01%) decrease in YOC related to the following purchases (yield at the time of purchase):

- $84 AFLAC Inc. (AFL) 3.5%
- $386 ConocoPhillips (COP) 4.1%
- $192 Cincinnati Financial Corp. (CINF) 5.8%
- $228 Illinois Tool Works Inc. (ITW) 3.2%
- $248 Genuine Parts Company (GPC) 3.5%
- $413 National Retail Properties, Inc. (NNN) 5.7%

All the above purchases lowered my YOC, except CINF and NNN. 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 $40 increase in annual dividend income and 0.010% 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) $2.58a>$2.56a
- $47 Intel Corporation (INTC) $0.1812q>$0.21q

Sales: In September, I sold my entire position in Harleysville Group Inc. (HGIC) at a substantial gain after the announcement it would be acquired by Nationwide.

After September, 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 November.

Full Disclosure: Long AFL, COP, CINF, ITW, GPC, NNN, PFF, INTC. See a list of all my dividend growth holdings here.

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(Photo: sanja gjenero)



Tags: [AFL] [COP] [CINF] [ITW] [GPC] [NNN] [PFF] [INTC] [HGIC]

2 comments:

  1. Hi there, many thanks for the specific and open information.

    You mentioned that yield on cost is 0.01% how do you price your own time?
    How do you discount your dividends by inflation?

    On my way to financial independence, after publishing results for last four years, I would it most challenging.

    ReplyDelete
  2. D4L,

    I am sorry but the dividends on CINF and NNN are not sustainable. I am afraid you are chasing yield on these two, and it could backfire.

    I hold both, but wouldn't add to these positions. Also, as I continuously put new money to work for my portfolio, the portfolio size of these positions decreases.

    ReplyDelete

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