Saturday, March 9, 2013

Dividend Income Progress Update - February 2013

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in February, extending the streak to 32 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 61 of the last 63 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 915 0.00%
Div. Changes YTD 546 0.00%
Sales YTD -740 0.03%
February/2013 22,371 4.50%
Purchases 618 0.01%
Div. Changes 36 -0.06%
Sales -630 0.01%
January/2013 22,347 4.54%

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 $618 and increased 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 $36 increase in annual dividend income and -0.06% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $ 17 AT&T, Inc. (T) $0.44q>$0.45q
- ($288) U.S. Preferred Stock Index (PFF) $0.2597q>$0.19153
- $ 3 Nucor Corporation (NUE) $0.365q>$0.3675q
- $ 9 HCP, Inc. (HCP) $0.50q>$0.525q
- $ 22 ALPS Alerian MLP ETF (AMLP) $0.256q>$0.261q
- $ 59 Realty Income Corp. (O) $0.15175m>$0.18091m
- $ 3 Northwest Natural Gas Company (NWN) $0.4475q>0.455q

Sales: During February, I sold all of my remaining CTL shares at a loss. CTL recently cut its dividend. Fortunately, I had sold the majority of my position in 2011 after the stock failed to raise its dividend. In addition, I sold all of my AOD shares at a loss. AOD recently cut its dividend. In late 2008 and early 2009, I had sold a significant portion of my AOD position. Together, CTL and AOD represented less than 1% of Dividend Growth Portfolio.

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

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: [T] [PFF] [NUE] [HCP] [AMLP] [O] [NWN]