Saturday, June 7, 2014

Dividend Income Progress Update - May 2014

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in May, extending the streak to 47 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 76 of the last 78 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 2,427 -0.09%
Div. Changes YTD 672 0.12%
Sales YTD -746 0.01%
May/2014 28,933 4.58%
Purchases 426 -0.03%
Div. Changes 256 0.04%
Sales -104 0.00%
April/2014 28,355 4.57%

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 $578, and Yield on Cost (YOC) was up 0.01%. This month's changes were a net of new purchases, dividend changes and sales. Let's examine each of the these categories:

Purchases: Purchases this month increased my annual dividend income by $426 and decreased yield on cost -0.03%. 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, as they were able to do in May.

Dividend Changes: The $256 increase in annual dividend income and 0.04% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $82 Raytheon Co. (RTN) $0.55q>$0.605q
- $82 General Dynamics Corp. (GD) $0.56q>$0.62q
- $6 ALPS Alerian MLP ETF (AMLP) $0.278q>$0.279q
- $12 People's United Financial Inc. (PBCT) $0.1625q>$0.165q
- $70 The Procter & Gamble Company (PG) $0.6015q>$0.6436q
- $52 AbbVie Inc. (ABBV) $0.40q>$0.42q
- $4 Colgate-Palmolive Co. (CL) $0.34q>$0.36q

Sales: In May I liquidated my position in ADP with a 82% gain. ADP's dividend was one of the lowest in my dividend growth portfolio.

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

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: [RTN] [GD] [AMLP] [PBCT] [PG] [ABBV] [CL]