Saturday, February 9, 2013

Dividend Income Progress Update - January 2013

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in January, extending the streak to 31 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 60 of the last 62 months.

My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2013 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
2013 Goal 25,000 n/a
December/2012 21,650 4.47%
Purchases YTD 297 -0.01%
Div. Changes YTD 510 0.06%
Sales YTD -110 0.02%
January/2013 22,347 4.54%
Purchases 297 -0.01%
Div. Changes 510 0.06%
Sales -110 0.02%
December/2012 21,650 4.47%

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 $697, and Yield on Cost (YOC) increased 0.07%. 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 $297 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 $510 increase in annual dividend income and 0.06% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- 9 Automatic Data Processing, Inc. (ADP) $0.395q>$0.435q
- 278 U.S. Preferred Stock Index (PFF) $0.1938q>$.0.2597q
- 65 Global Dividend Opportunities (ETO) $0.1167m>$.0.135m
- 1 Realty Income Corp. (O) $0.15143m>$.0.15175m
- 12 Sysco Corporation (SYY) $0.27q>$.0.28q
- 145 AbbVie Inc. (ABBV) net increase from spinoff

Sales: During January, I sold a portion of my ABT shares at a significant gain. After the spinoff of ABBV, ABT is now my lowest yielding dividend growth stock.

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

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: [ADP] [PFF] [ETO] [O] [SYY] [ABBV]