Saturday, February 6, 2010

* Progress Update - January 2010

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in January, extending the streak to 11 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 25 of the last 26 months.
My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2010 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%
2010 Goal 9,500 5.00%
December/2009 7,274 4.84%
Purchases YTD 248 -0.09%
Div. Changes YTD 19 0.01%
Sales YTD - -%
January/2010 7,541 4.76%
Purchases 248 -0.09%
Div. Changes 19 0.01%
Sales - -%
December/2009 7,274 4.84%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $267, and Yield on Cost (YOC) decreased (0.08%). 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 $248 increase in annual dividend income and (0.09%) decrease in YOC related to the following purchases (yield at the time of purchase):

  • $84 Harleysville Group Inc. (HGIC) 4.05% [Analysis]
  • $94 Sysco Corp. (SYY) 3.45% [Analysis]
  • $70 Vanguard Intermediate Bond ETF (BIV) 4.33%
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 $19 increase in annual dividend income and 0.01% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • $1 Canadian National Railway Company (CNI) $0.236q>$0.241q 0.00%
  • $1 iShares Invest Grade Bond (LQD) $5.71a>$5.73a 0.00%
  • $13 Sysco Corp. (SYY) $0.24q>$0.25q 0.00%
  • $4 Emerging Markets Debt (PCY) $1.61m>$1.63m 0.01%
Sales: There were no sales in this month.

After one month, I still expect to achieve my goal of an annualized dividend income of $9,500 by December 31, 2010.
That's it for this time. The next monthly progress update will be early March.

(Photo: sanja gjenero)

M&T Bank Corp.

Tags: [BIV] [CNI] [HGIC] [LQD] [PCY] [SYY]