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Saturday, December 8, 2012

Dividend Income Progress Update - November 2012

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 29 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 58 of the last 60 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 5,669 -0.08%
Div. Changes YTD 947 0.18%
Sales YTD -1,671 -0.03%
November/2012 21,106 4.45%
Purchases 436 -0.01%
Div. Changes 52 0.01%
Sales -73 0.01%
October/2012 20,691 4.44%

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 $415, and Yield on Cost (YOC) increased 0.01%. 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 $247 and decreased yield on cost -0.01%. 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 $241 increase in annual dividend income and 0.01% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- 34 U.S. Preferred Stock Index (PFF) $0.20296m>0.21113m
- 18 ALPS Alerian MLP ETF (AMLP) $0.252q>0.256q

Sales: During September, I sold a portion of my WMT shares at a significant gain. WMT continues to be my lowest yielding dividend growth stock.

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: [PFF] [AMLP]

2 comments:

  1. D4L,

    These are some really impressive numbers. It seems that you would be one of the few baby boomers that will be able to retire quite comfortably pretty soon.

    I am not sure if selling WMT is a good idea though. A stock can remain overvalued for extended periods of time.

    ReplyDelete
  2. Congrats on your progress Dividends for Life! Curious to know how you are planning to get to $110K by 2027 in dividend income. Thats an impressive target from the $20k today. I am hoping to double my current $25k/yr in dividends in the next 5 years if possible through a combo of organic growth and new investment into the portfolio. Perhaps you are currently reinvesting dividends rather than taking them in cash?

    ReplyDelete

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