Saturday, January 9, 2010

* Progress Update - December 2009

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in December, extending the streak to 10 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 24 of the last 25 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 4,113 -0.33%
Div. Changes YTD (483) -0.43%
Sales YTD (1,992) 0.32%
December/2009 7,274 4.84%
Purchases 252 -0.02%
Div. Changes 5 -0.01%
Sales - 0.00%
November/2009 7,017 4.87%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $257, and Yield on Cost (YOC) decreased (0.03%). This month's changes were a net of new purchases and dividend changes (no sales). Let's examine each of the these categories:
Purchases: The $252 increase in annual dividend income and (0.02%) decrease in YOC related to the following purchases (yield at the time of purchase):

  • $68 McDonald's Corp. (MCD) 3.61% [Analysis]
  • $63 Johnson & Johnson (JNJ) 3.03% [Analysis]
  • $121 Emerging Markets Debt (PCY) 6.26%
All the above 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 $5 increase in annual dividend income and (0.01%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • ($3) Vanguard Inter. Bond ETF (BIV) $3.48a>$3.45a -0.01%
  • ($2) iShares Invest Grade Bond (LQD) $5.74a>$5.71a 0.00%
  • $2 Emerson Electric Co. (EMR) $0.33q>$0.335q 0.00% [Analysis]
  • $20 McDonald's Corp. (MCD) $0.50q>$0.55q 0.01%
  • ($17) Eaton Vance Global Dividend Fund (ETO) $1.46m>$1.40m -0.01%
  • $4 Emerging Markets Debt (PCY) $1.59m>$1.61m 0.00%
  • $1 Vanguard Inter. Bond ETF (BIV) $3.45m>$3.47m 0.00%
Sales: There were no sales in this month.

I exceeded my revised estimate of annualized dividend income of $7,000. However, as anticipated, I fell short of my my original goal of $8,000.
That's it for this time. The next monthly progress update will be early February.

(Photo: sanja gjenero)

M&T Bank Corp.

Tags: [BIV] [EMR] [ETO] [JNJ] [LQD] [MCD] [PCY]