Saturday, March 6, 2010

* Progress Update - February 2010

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in February, extending the streak to 12 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 26 of the last 27 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 563 -0.09%
Div. Changes YTD 23 0.01%
Sales YTD - -%
February/2010 7,860 4.76%
Purchases 315 0.00%
Div. Changes 4 0.00%
Sales - -%
January/2009 7,541 4.76%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $319, and Yield on Cost (YOC) remained flat (0.00%). 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 $315 increase in annual dividend income and no change (0.00%) in YOC related to the following purchases (yield at the time of purchase):

  • $165 AT&T, Inc. (T) 6.65% [Analysis]
  • $58 United Technologies Corp. (UTX) 2.55% [Analysis]
  • $92 Emerging Markets Debt (PCY) 6.47%
T and PCY raised my YOC, while UTX lowered it. 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 $4 increase in annual dividend income and the flat (0.00%) YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • ($3) iShares Invest Grade Bond (LQD) $5.73a>$5.69a (0.01%)
  • $5 Nucor Corporation (NUE) $0.35q>$0.36q 0.01% [Analysis]
  • $2 Emerging Markets Debt (PCY) $1.63a>$1.64a 0.00%
Sales: There were no sales in this month.

I am still on target 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 April.

(Photo: sanja gjenero)

M&T Bank Corp.