Saturday, December 12, 2009

* Progress Update - November 2009

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in November, extending the streak to 9 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 23 of the last 24 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 3,861 -0.31%
Div. Changes YTD (488) -0.45%
Sales YTD (1,992) 0.32%
November/2009 7,017 4.84%
Purchases 226 -0.09%
Div. Changes (5) -0.03%
Sales (28) 0.02%
October/2009 6,824 4.94%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $193, and Yield on Cost (YOC) decreased (0.10%). This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:
Purchases: The $226 increase in annual dividend income and (0.09%) decrease in YOC related to the following purchases (yield at the time of purchase):

  • $87 Nucor Corporation (NUE) 3.38%
  • $56 United Technologies Corp. (UTX) 2.25%
  • $83 Vanguard Inter. Bond (BIV) 4.29%
All the above purchases 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 $5 decrease in annual dividend income and (0.03%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • $5 Vanguard Inter. Bond ETF (BIV) $3.41a>$3.48a 0.00%
  • $11 Vanguard Long Bond ETF (BLV) $3.90a>$4.00a 0.01%
  • $1 iShares Invest Grade Bond (LQD) $5.72a>$5.74a 0.00%
  • ($20) Eaton Vance Global Dividend Fund (ETO) $1.53a>$1.46a -0.02%
  • ($2) Emerging Mkts Debt (PCY) $1.60a>1.59a -0.01%
Sales: The ($28) decrease in annual dividend income and 0.02% increase in YOC related to the following sale:

  • ($28) M&T Bank Corp. (MTB) 0.02%
I sold my entire position in MTB after the company announced another $0.70/share dividend. This ensured that 2009's dividend will be flat with 2008.
I have exceeded my revised estimate of annualized dividend income of $7,000. However, I will fall short of my my original goal of $8,000.
That's it for this time. The next monthly progress update will be early January.

(Photo: sanja gjenero)

M&T Bank Corp.

Tags: [BIV] [BLV] [LQD] [MTB] [NUE] [PCY] [UTX]