Saturday, December 10, 2011

Dividend Income Progress Update - November 2011

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in November, extending the streak to 17 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 46 of the last 48 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 5,886 -0.32%
Div. Changes YTD 661 0.12%
Sales YTD (2,123) 0.02%
November/2011 15,831 4.37%
Purchases 545 -0.07%
Div. Changes 4 0.00%
Sales (370) -0.02%
October/2011 15,652 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 $179, and Yield on Cost (YOC) was down 0.09%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: The $545 increase in annual dividend income and -0.07% decrease in YOC related to the following purchases (yield at the time of purchase):

- $91 Community Trust Bancorp Inc. (CTBI) 4.5%
- $74 Medtronic, Inc. (MDT) 2.8%
- $75 General Dynamics Corp. (GD) 2.9%
- $218 Emerson Electric Co. (EMR) 3.1%
- $87 Chevron Corporation (CVX) 3.4%

All the above purchases lowered my YOC, except CTBI. 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 $4 increase in annual dividend income and 0.00% no change in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $4 U.S. Preferred Stock Index (PFF) $2.54a>$2.55a

Sales: In November, I sold 24% of my position in CenturyLink, Inc. (CTL) at a gain as a result of its high FCF payout. I also sold 73% of my UTX shares at a gain. UTX has enjoyed a significant run up, and as a result of the price increase its yield has fell to a level that I was able to find a better alternative.

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 January.

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: [CVX] [EMR] [GD] [UTX] [MDT] [CTBI] [PFF]

1 comment:

  1. D4L,

    Great minds think alike! I also purchased MDT and GD last month. I think both were at very attractive levels, especially as GD approached the low $60's. I see Buffett also took a stake in GD. Solid business, and MDT too.

    I also very recently purchased one of your other new purchases, and I'll be discussing that very soon.

    Huge numbers as always and very inspiring. I just keep telling myself "one day".

    I also sold one of my telecom holdings, much like you due to declining fundamentals (namely debt). Although, unfortunately, I did not experience a capital gain like you.

    Best wishes!

    ReplyDelete

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