Saturday, March 8, 2014

Dividend Income Progress Update - February 2014

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 44 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 73 of the last 75 months.

My goals were defined in this December 1, 2007 Investing Goals post and last updated in my 2014 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 42,000 n/a
2014 Goal 30,000 n/a
December/2013 26,580 4.54%
Purchases YTD 1,424 -0.01%
Div. Changes YTD 102 0.03%
Sales YTD -642 0.01%
February/2014 27,422 4.55%
Purchases 961 0.00%
Div. Changes 78 0.02%
Sales -426 0.00%
January/2013 26,809 4.53%

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 $613, and Yield on Cost (YOC) was up 0.02%. 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 $961 and did not change yield on cost 0.00%. 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.

Dividend Changes: The $78 increase in annual dividend income and 0.02% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $21 AT&T, Inc. (T) $0.45q>$0.46q
- $22 ALPS Alerian MLP ETF (AMLP) $0.274q>$0.278q
- $35 HCP, Inc. (HCP) $0.525q>$0.545q

Sales: In February, I liquidated my position in Norfolk Southern Corporation (NSC) with a significant gain. With a 2.2% yield, NSC was one my lowest yielding stocks; and with 0 stars, it also was my lowest ranked stock.

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

Full Disclosure: Long, all the aforementioned securities, except NSC. See a list of all my dividend growth holdings here.

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(Photo: sanja gjenero)

Tags: [T] [AMLP] [HCP]