Saturday, May 8, 2010

* Progress Update - April 2010

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in April, extending the streak to 14 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 28 of the last 29 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 1,159 -0.13%
Div. Changes YTD 95 0.09%
Sales YTD - -%
April/2010 8,528 4.80%
Purchases 284 -0.03%
Div. Changes 31 0.01%
Sales - -%
March/2009 8,213 4.82%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $315, and Yield on Cost (YOC) decreased (0.02%). 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 $284 increase in annual dividend income and a (0.01%) decrease in YOC related to the following purchases (yield at the time of purchase):

  • $126 Kimberly-Clark Corporation (KMB) 4.21% [Analysis]
  • $56 Wal-Mart Stores Inc. (WMT) 2.20% [Analysis]
  • $102 U.S. Preferred Stock Index (PFF) 6.18%
PFF raised my YOC, while KMB and WMT 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 $31 increase in annual dividend income and the 0.01% increase YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • $5 Kimberly-Clark Corporation (KMB) $0.60q>$0.66q
  • $8 Wal-Mart Stores Inc. (WMT) $0.2725q>$0.3025q
  • $4 Canadian National Railway (CNI) $0.241q>$0.26457q
  • $6 Genuine Parts Company (GPC) $0.40q>$0.41q [Analysis]
  • $12 The Coca-Cola Company (KO) $0.41q>$0.44q [Analysis]
  • ($3) Intermediate-Term Bond ETF (BIV) $2.47a>$2.45a
  • $2 Long-Term Bond ETF (BLV) $3.96a>$3.97a
  • ($4) iShares Invest Grade Corp Bond (LQD) $5.65a>$5.60a
  • $1 Realty Income Corp. (O) $0.143q>$0.14331q
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. Barring some dividend cuts, annualized dividend income of $10,000 by December 31, 2010 is obtainable.
That's it for this time. The next monthly progress update will be early June.

(Photo: sanja gjenero)

M&T Bank Corp.