Saturday, June 9, 2012

Dividend Income Progress Update - May 2012

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 23 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 52 of the last 54 months.

My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2012 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 n/a
2017 Goal 30,000 n/a
2012 Goal 21,000 n/a
December/2011 16,161 4.38%
Purchases YTD 1,923 -0.01%
Div. Changes YTD 445 0.05%
Sales YTD -256 -0.01%
May/2012 18,273 4.41%
Purchases 569 0.02%
Div. Changes 218 0.02%
Sales -183 0.00%
April/2012 17,669 4.37%

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 $604, and Yield on Cost (YOC) was up 0.04%. This month's changes were a net of new purchases, dividend changes and sales during the month. Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $569 and increased my yield on cost by 0.02%. 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 $218 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):

- ($14) U.S. Preferred Stock Index (PFF) $2.38a>$2.34a
- $14 General Dynamics Corp. (GD)$0.47q>$0.51q
- $152 Procter & Gamble Co. (PG) $0.525q>$0.562q
- $15 Colgate-Palmolive Co. (CL) $0.58q>$0.62q
- $51 Abbott Laboratories (ABT) $0.48q>$0.51q

Sales:
During May, I liquidated my position in PSX. This resulted in a 3.1% loss on the shares.

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

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: [PFF] [GD] [PG] [CL][ABT]

2 comments:

  1. You "generally expect YOC to drop in most months since new investments will yield less than my current YOC,"

    Did you make your purchase from income generated from your portfolio? If so, I don't think it should not be deceasing your real YOC. Is it not a purchase coming from income that came from the original investment price?

    Great site congratulation.

    ReplyDelete
  2. Blog Rider: I view reinvested dividends as new investments since I have the option of not investing them. Rarely ever do I invest th dividends in the stock that generated them, instead I combine them with new funds and buy the best available stock on that day. As such, my YOC calculation is on the conservative side.

    Best Wishes,
    D4L

    ReplyDelete

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