Saturday, January 7, 2012

Dividend Income Progress Update - December 2011

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in December, extending the streak to 18 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 47 of the last 49 months.

My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2012 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 6,346 -0.34%
Div. Changes YTD 833 0.17%
Sales YTD (2,425) 0.00%
December/2011 16,161 4.38%
Purchases 460 -0.02%
Div. Changes 172 0.05%
Sales (302) -0.02%
November/2011 15,831 4.37%

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 $330, and Yield on Cost (YOC) was up 0.01%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $460 and decreased my yield on cost by -0.07%. 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 $172 increase in annual dividend income and 0.05% no change in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- ($11) U.S. Preferred Stock Index (PFF) $2.55a>$2.52a
- $49 Emerson Electric Co. (EMR) $0.345q>$0.40q
- $97 McDonald's Corp. (MCD) $0.61q>$0.70q
- $30 Lockheed Martin Corporation (LMT) $0.75q>$1.00q
- $7 Universal Health Realty Income Trust (UHT) $0.605q>$0.61q

Sales: In December, I sold 44% of my position in CenturyLink, Inc. (CTL) at a gain as a result of its high FCF payout. Also, I transferred my Canadian National Railway Company (CNI) to my new International Income Portfolio.

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

Full Disclosure: Long all the aforementioned securities. See a list of all my dividend growth holdings here.

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(Photo: sanja gjenero)

Tags: [PFF] [EMR] [MCD] [LMT] [UHT] [CTL] [CNI]