Saturday, November 7, 2009

* Progress Update - October 2009

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in October, extending the streak to 8 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 22 of the last 23 months.
My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2009 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%
2009 Goal 8,000 5.00%
December/2008 5,636 5.28%
Purchases YTD 3,635 -0.22%
Div. Changes YTD (483) -0.42%
Sales YTD (1,964) 0.30%
October/2009 6,824 4.94%
Purchases 359 -0.04%
Div. Changes (37) -0.04%
Sales (153) 0.02%
September/2009 6,655 5.00%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $169, and Yield on Cost (YOC) decreased (0.06%). This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:
Purchases: The $359 increase in annual dividend income and (0.04%) decrease in YOC related to the following purchases (yield at the time of purchase):

  • $84 Emerson Electric Co. (EMR) 3.34%
  • $77 Procter & Gamble Co. (PG) 3.04%
  • $198 PowerShares Emerging Mkts Sovereign Debt (PCY) 6.15%
All the purchases, except PCY, lowered 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.
Dividend Changes: The $37 decrease in annual dividend income and (0.04%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • $3 Canadian National Railway Company (CNI) $0.217q>$0.236q 0.00%
  • ($3) Vanguard Intermediate-Term Bond ETF (BIV) $3.46a>$3.41a 0.00%
  • ($15) Vanguard Long-Term Bond ETF (BLV) $3.46a>$3.90a -0.01%
  • ($6) iShares iBoxx $ Invest Grade Corp Bond (LQD) $5.79a>$5.72a -0.01%
  • ($17) Eaton Vance Tax-Adv. Global Dividend Fund (ETO) $1.59m>$1.53m -0.02%
  • $1 Realty Income Corp. (O) $0.14237m>0.14268m 0.00%
Sales: The ($153) decrease in annual dividend income and 0.02% increase in YOC related to the following sale:

  • ($153) Vanguard REIT Index ETF (VNQ) 0.01%
In October I continued the process of trimming back my ETFs/CEFs income holdings with the sale of VNQ and have now sold all the ETFs that currently I plan to sell. I will continue to evaluate the performance of the ones I continue to hold.
Based on year-to-date results, I am on target to meet or exceed my revised estimate of annualized dividend income on December 31, 2009 of $7,000. This is $1,000 below my original goal of $8,000.
That's it for this time. The next monthly progress update will be early December.

(Photo: sanja gjenero)

Tags: [BIV] [BLV] [CNI] [EMR] [ETO] [LQD] [O] [PCY] [PG] [VNQ]