Saturday, June 8, 2013

Dividend Income Progress Update - May 2013

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 35 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 64 of the last 66 months.

My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2013 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
2013 Goal 25,000 n/a
December/2012 21,650 4.47%
Purchases YTD 2,298 -0.05%
Div. Changes YTD 881 0.06%
Sales YTD -1,176 0.04%
May/2013 23,653 4.52%
Purchases 542 -0.01%
Div. Changes 259 0.05%
Sales -204 0.00%
April/2013 23,056 4.48%

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 $597, and Yield on Cost (YOC) increased 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 $542 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 $259 increase in annual dividend income and 0.05% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $63 Raytheon Co. (RTN) $0.50q>$0.55q
- $63 U.S. Preferred Stock Index (PFF) $0.1554m>$0.1729m
- $48 General Dynamics Corp. (GD) $0.51q>$0.56q
- $13 ALPS Alerian MLP ETF (AMLP) $0.261q>$0.264q
- $66 Procter & Gamble Co. (PG) $0.562q>$0.6015q
- $6 People's United Financial Inc. (PBCT) $0.16q>$0.1625q

Sales: During May, I sold 22% of my PFF shares at a gain. PFF's dividend has been extremely volatile and does not fit well in my Dividend Growth Portfolio. I plan to continue trimming my position in the future

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: [RTN] [PFF][GD] [AMLP] [PG] [PBCT]

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