Friday, July 6, 2012

Dividend Income Progress Update - June 2012

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in June, extending the streak to 24 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 53 of the last 55 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 2,371 -0.03%
Div. Changes YTD 659 0.11%
Sales YTD -331 0.00%
June/2012 18,860 4.45%
Purchases 448 -0.03%
Div. Changes 214 0.06%
Sales -75 0.01%
May/2012 18,273 4.41%

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 $587, and Yield on Cost (YOC) was up 0.04%. 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 $448 and decreased my yield on cost by -0.03%. 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 $214 increase in annual dividend income and 0.04% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $109 U.S. Preferred Stock Index (PFF) $0.17661m>$0.20239m
- $43 Chevron Corporation (CVX) $.0.81q>$0.90q
- $42 Johnson & Johnson (JNJ) $.057q>$0.61q
- $11 Pepsico, Inc. (PEP) $.515q>$0.5375q
- $9 Universal Health Realty Trust (UHT) $.61q>$0.615q

During June, I sold 33% of my CL shares at a gain, reducing my annualized dividend income by $75.

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

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] [CVX] [JNJ] [PEP] [UHT]