Saturday, January 12, 2013

Dividend Income Progress Update - December 2012

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 30 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 59 of the last 61 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 6,189 -0.09%
Div. Changes YTD 1,067 0.21%
Sales YTD -1,767 -0.02%
December/2012 21,650 4.48%
Purchases 520 -0.01%
Div. Changes 120 0.03%
Sales -96 0.01%
November/2012 21,106 4.45%

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 $544, and Yield on Cost (YOC) increased 0.03%. 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 $520 and decreased yield on cost -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 $120 increase in annual dividend income and 0.03% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- (73) U.S. Preferred Stock Index (PFF) $0.21113mm>$0.1938m
- 19 AFLAC (AFL) $0.33q>$0.35q
- 14 Emerson Electric Co. (EMR) $0.40q>$0.41q
- 48 Microsoft Corporation (MSFT) $0.20q>$0.23q
- 86 McDonald's Corp. (MCD) $0.70q>$0.77q
- 18 Lockheed Martin Corporation (LMT) $1.00q>$1.15q
- 8 Universal Health Realty (UHT) $0.615q>$0.62q

Sales: During December, I sold a portion of my WMT shares at a significant gain. WMT continues to be my lowest yielding dividend growth stock.

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)

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