Saturday, May 7, 2011

Dividend Income Progress Update - April 2011

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in April, extending the streak to 10 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 39 of the last 41 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 4.55%
Purchases YTD 1,628 -0.15%
Div. Changes YTD 120 0.04%
Sales YTD (561) 0.02%
April/2011 12,977 4.46%
Purchases 472 -0.02%
Div. Changes 127 0.02%
Sales (216) -0.02%
March/2011 12,594 4.48%

The above information covers the current month and year-to-date through the current month.

Click here for a Detailed Historical Progress Table.

For the month, annualized dividend income increased $383, 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 $472 increase in annual dividend income and -0.02% decrease in YOC related to the following purchases (yield at the time of purchase):

- $216 Harleysville Group Inc. (HGIC) 4.3%
- $156 Intel Corporation (INTC) 3.6%
- $100 Procter & Gamble Co. (PG) 3.0%

All the above purchases lowered my YOC. 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 $127 increase in annual dividend income and the 0.02% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $18 The Coca-Cola Company (KO) $0.44q>$0.47q
- $12 Canadian National Railway (CNI) $0.27141q>$0.33438q
- $60 Wal-Mart Stores Inc. (WMT) $0.3025q>$0.365q
- $16 Kimberly-Clark Corporation (KMB) $0.66q>$0.70q
- $1 Realty Income Corp. (O) $0.14425m>$0.14456m
- $5 MLP Infrastructure ETN (MLPI) $1.54a>$1.55a
- $29 Intel Corporation (INTC) $0.1575q>$0.1812q

Sales: The $216 decrease in annual dividend income and the -0.02% decrease in YOC related to the following sale:

- ($216) Eli Lilly & Co. (LLY)

After April, 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 June.

(Photo: sanja gjenero)

Tags: [HGIC] [INTC] [PG] KO] [WMT] [KMB] [O] [MLPI] [INTC] [LLY]