Saturday, April 9, 2011

Dividend Income Progress Update - March 2011

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in March, extending the streak to 9 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 38 of the last 40 months.

My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.

Description Dividend
on Cost
2027 Goal 110,000 10.00%
2017 Goal 30,000 5.80%
2011 Goal 15,500 4.70%
December/2010 11,407 4.48%
Purchases YTD 1,628 -0.13%
Div. Changes YTD 120 0.06%
Sales YTD (561) 0.00%
March/2011 12,594 4.48%
Purchases 526 -0.03%
Div. Changes 53 0.03%
Sales (174) -0.02%
February/2011 12,189 4.50%
The above information covers the current month and year-to-date through the current month.

For the month, annualized dividend income increased $405, and Yield on Cost (YOC) was down -0.02%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: The $526 increase in annual dividend income and -0.03% decrease in YOC related to the following purchases (yield at the time of purchase):
PFF and LEG raised my YOC, while all of the other stocks lowered it. As noted in earlier updates, I generally expect YOC to drop in most months since new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset the decline.

Dividend Changes: The $53 increase in annual dividend income and the 0.03% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

  • $17 U.S. Preferred Stock Index (PFF) $2.35a>$2.40a
  • $2 3M Co. (MMM) $0.525q>$0.55q
  • $2 Consolidated Edison Inc. (ED) $0.595q>$0.60q
  • $32 Owens & Minor Inc. (OMI) $0.177q>$0.20q
Sales: The $174 decrease in annual dividend income and the -0.02% decrease in YOC related to the following sale:
  • $174 Integrys Energy Group, Inc. (TEG)
As a result of significant price appreciation and a failure to raise its dividend in 2010, I sold 67% of my TEG holdings in February. TEG is now a Golden Stock since I have recouped 104.5% of my original investment through dividends and share sales.

After March, I am still on track to reach my goal of $15,500 in annualized dividend income by December 31, 2011.

That's it for this time. The next monthly progress update will be early May.

(Photo: sanja gjenero)

Tags: [PFF] [LEG] [WMT] [COP] [MMM] [ED] [OMI] [TEG]