Saturday, June 12, 2010

* Progress Update - May 2010

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in May, extending the streak to 15 months after February 2009's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 29 of the last 30 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 1,513 -0.13%
Div. Changes YTD 125 0.10%
Sales YTD - -%
April/2010 8,912 4.81%
Purchases 354 0.00%
Div. Changes 30 0.01%
Sales - -%
March/2009 8,528 4.80%
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $384, and Yield on Cost (YOC) increased 0.01%. 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 $354 increase in annual dividend income and no change (0.00%) in YOC related to the following purchases (yield at the time of purchase):

  • $63 Colgate-Palmolive Company (CL) 2.54% [Analysis]
  • $102 Harleysville Group Inc. (HGIC) 4.00% [Analysis]
  • $189 Alerian MLP Infrastructure ETN (MLPI) 6.76%
MLPI raised my YOC, while CL and HGIC 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 $30 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):

  • $20 Procter & Gamble Co. (PG) $0.44q>$0.4818q [Analysis]
  • $12 Abbott Laboratories (ABT) $0.40q>$0.44q [Analysis]
  • ($2) U.S. Preferred Stock Index (PFF) $2.38a>$2.36a
  • ($1) iShares Invest Grade Corp Bond (LQD) $5.60a>$5.59a
  • ($1) Intermediate-Term Bond ETF (BIV) $3.45a>$3.44a
  • ($1) Long-Term Bond ETF (BLV) $3.97a>$3.96a
  • $3 Emerging Markets Sovereign Debt (PCY) $1.65a>$1.66a
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 and based on performance to this point I believe 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 July.
(Photo: sanja gjenero)

M&T Bank Corp.