Saturday, March 10, 2012

Dividend Income Progress Update - February 2012

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in February, extending the streak to 20 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 49 of the last 51 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 n/a
2017 Goal 30,000 n/a
2012 Goal 21,000 n/a
December/2011 16,161 4.38%
Purchases YTD 540 -0.03%
Div. Changes YTD 44 -0.01%
Sales YTD 0 0.00%
February/2012 16,745 4.34%
Purchases 253 -0.01%
Div. Changes 24 -0.01%
Sales 0 0.00%
January/2012 16,468 4.36%

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 $277, and Yield on Cost (YOC) was down 0.02%. This month's changes were a net of new purchases and dividend changes (no sales during the month). Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $253 and decreased my yield on cost by -0.01%. 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 $24 increase in annual dividend income and -0.01% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- ($18) U.S. Preferred Stock Index (PFF) $2.49a>$2.44a
- $03 Nucor Corporation (NUE) $0.3625q>$0.365q
- $09 AFLAC Incorporated (AFL) $0.30q>$0.33q
- $07 HCP, Inc. (HDP) $0.48q>$0.50q
- $23 AT&T Inc. (T) $0.48q>$0.50q

Sales: There were no sales in the month of February.

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

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] [NUE] [AFL] [HCP] [T]