Saturday, November 10, 2012

Dividend Income Progress Update - October 2012

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in October, extending the streak to 28 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 57 of the last 59 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 5,233 -0.07%
Div. Changes YTD 895 0.17%
Sales YTD -1,598 -0.04%
October/2012 20,691 4.44%
Purchases 381 -0.04%
Div. Changes 27 0.01%
Sales -66 -0.01%
September/2012 20,349 4.46%

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 $342, and Yield on Cost (YOC) decreased 0.02%. 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 $381 and decreased yield on cost -0.04%. 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 $27 increase in annual dividend income and 0.01% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- ($28) U.S. Preferred Stock Index (PFF) $0.20970m>$0.20296m
- $7 Community Trust Bancorp Inc. (CTBI) $0.31q>$0.315q
- $23 Illinois Tool Works Inc. (ITW) $0.36q>$0.38q
- $16 Leggett & Platt (LEG) $0.28q>$0.29q
- $8 Cincinnati Financial Corp. (CINF) $0.4025q>$0.4075q
- $1 Realty Income Corp. (O) $0.15112m>$0.15143m

Sales: During September, I sold a portion of my WMT shares at a significant gain. WMT is my lowest yielding dividend growth stocks.

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

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] [CTBI] [ITW] [LEG] [CINF] [O]