Saturday, January 4, 2014

Dividend Income Progress Update - December 2013

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 42 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 71 of the last 73 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 5,310 -0.21%
Div. Changes YTD 1,777 0.22%
Sales YTD -2,157 0.06%
December/2013 26,580 4.54%
Purchases 183 -0.01%
Div. Changes 401 0.05%
Sales -51 0.00%
November/2013 26,047 4.50%

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 $533, and Yield on Cost (YOC) was up 0.04%. This month's changes were a net of new purchases and dividend changes (no sales during the month). Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $183 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 normally be sufficient to offset the decline - this month they were.

Dividend Changes: The $40 increase in annual dividend income and 0.05% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $23 AFLAC Inc. (AFL) $0.35q>$0.37q
- $28 Emerson Electric Co. (EMR) $0.41q>$0.43q
- $152 Microsoft Corporation (MSFT) $0.23q>$0.28q
- $58 McDonald's Corp. (MCD) $0.77q>$0.81q
- $21 Lockheed Martin Corporation (LMT) $1.15q>$1.33q

Sales: In December I liquidated my position in MMM at $127.08 with a substantial gain. At the time, MMM was my lowest yielding 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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- My 2012 Top And Bottom Performing Dividend Stocks
- 7 Dividend Stocks With Room To Increase Their Payout
- 9 High Rated, Lower Debt Dividend Stocks With A Reasonable Payout

(Photo: sanja gjenero)

Tags: [AFL] [EMR] [MSFT] [MCD] [LMT] [MMM]


  1. I checked your goal for 2013 and you exceeded it. Also I wonder why is your goal to reach 110k by 2027. Is it in today's dollars? I was thinking that I could retire with a lot less money.

  2. Martin: I will be 65 in 2027. The $110k is what my model estimated my will be yearly income would be back when I first started publicly tracking my progress. It is in nominal dollars.

    I will likely not make that amount since I will probably start investing for my kids before then and will divert a significant portion of my portfolio to them each year for estate tax planning purposes.

    Best Wishes,

  3. Congrats on a great 2013 and on outperforming the S&P500 over the last 5 years. You look on pace to very easily exceed the 2017 goal. I am not so sure about the 2027 target though. Depends on how much additional capital you are able to add.

    Since your timeline is so long have you considered writing some deep in the money puts on some of your long positions to increase your long-term returns? I show my options strategy at