Saturday, December 6, 2008

* Progress Update - November 2008

Once again it is time for a goals/progress update. November brought more dividend cuts, but I am pleased to say that my annualized dividend income still managed to eek out an increase for the month. This kept alive the string of 12 consecutive months of increases dating back to December 2007 when I began tracking it. December 2008 could be a challenge to keep the string going. Several stocks that I hold could eventually cut their dividend.

My goals were defined in this December 1, 2007 Investing Goals post. Below is an updated version of the table found in the original post.
Description Dividend
on Cost
2027 Goal 110,000 20.00%
2017 Goal 30,000 10.00%
2008 Goal 4,000 4.90%
December/2007 3,054 5.00%
Purchases YTD 4,187 1.01%
Div. Changes YTD 28 0.06%
Sales YTD (1,687) -0.56%
November/2008 5,582 5.51%
Purchases 951 0.46%
Div. Changes (18) -0.02%
Sales (843) -0.31%
October/2008 5,492 5.38%
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 $90, and Yield on Cost (YOC) increased 0.13%. These changes were driven by new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: The $951 increase in annual dividend income and 0.46% increase in YOC related to the following purchases (yield at the time of purchase):
  • $103 CTL (10.10%)
  • $33 KO (3.26%)
  • $40 CAT (4.00%)
  • $65 TEG (6.63%)
  • $108 NNN (10.85%)
  • $64 PGN (6.51%)
  • $99 VNQ (9.75%)
  • $439 ETO (17.27%)
In November, I had higher than normal funds to invest due to the sale of the two stocks described below. All the above purchases, except CAT and KO increased my YOC. As noted in earlier updates, I generally expect YOC to drop each month since most new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset it.

Since both of the securities sold were in my risky category, I was comfortable spreading the funds over several risky investments (CTL, NNN, VNQ and ETO).

Dividend Changes: The ($18) decrease in annual dividend income and (0.02%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
  • ($18) RY $0.47755q>$0.40623q (0.02%)
The decrease in RY was due to currency conversion resulting from a strengthening U.S. dollar compared to the Canadian dollar.

Sales: The ($843) decrease in annual dividend income and (0.31%) decrease in YOC related to the following two stocks that cut their dividend and were immediately sold.
  • ($519) : FR : (0.14%)
  • ($324) : ACAS : (0.17%)
That's it for this time. The next monthly progress update will be on Saturday, January 3rd. On Saturday December 27th, I plan to update my goals including a goal for 2009.