Saturday, April 7, 2012

Dividend Income Progress Update - March 2012

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 21 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 50 of the last 52 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 1,025 -0.05%
Div. Changes YTD 74 0.01%
Sales YTD -73 -0.01%
March/2012 17,187 4.33%
Purchases 485 -0.02%
Div. Changes 30 0.02%
Sales -73 -0.01%
February/2012 16,745 4.34%

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 $442, and Yield on Cost (YOC) was up 0.01%. This month's changes were a net of new purchases, dividend changes and sales during the month. Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $485 and decreased my yield on cost by -0.02%. 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 $30 increase in annual dividend income and 0.02% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- ($14) U.S. Preferred Stock Index (PFF) $2.44a>$2.40a
- $03 3M Co. (MMM) $0.55q>$0.59q
- $03 Consolidated Edison Inc. (ED) $0.60q>$0.605q
- $11 Chevron Corporation (CVX) $0.78q>$0.81q
- $27 Owens & Minor Inc. (OMI) $0.20q>$0.22q

Sales: In March, I sold my position in UTX shares at a 22% gain. UTX's NPV MMA Diff. had gone negative and its yield had dropped to below 2.3%.

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

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

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(Photo: sanja gjenero)

Tags: [PFF] [MMM] [ED] [CVX] [OMI]