Saturday, November 15, 2014

Dividend Income Progress Update - October 2014

Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in October, extending the streak to 52 consecutive months of increases after June 2010's decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 81 of the last 83 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 4,847 -0.15%
Div. Changes YTD 1,379 0.19%
Sales YTD -1,916 -0.02%
October/2014 30,890 4.56%
Purchases 1,405 -0.03%
Div. Changes 357 0.03%
Sales -1,170 -0.03%
September/2014 30,298 4.59%

The above information covers the current month and year-to-date through the current month.

Click here for a Detailed Historical Progress Table.

In September I exceeded my 2014 goal of $30,000 of annualized dividends from my Dividend Growth Stock portfolio. For the month, annualized dividend income increased $592 and Yield on Cost (YOC) was down -0.03%. 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 $1,405 and lowered yield on cost flat -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.

Dividend Changes: The $357 increase in annual dividend income and increase of 0.03% in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

- $24 Community Trust Bancorp Inc. (CTBI) $0.290909q>$0.30q
- $74 Illinois Tool Works Inc. (ITW) $0.42q>$0.485q
- $2 Realty Income Corporation (O) $0.18279m>0.1831m
- $19 Leggett & Platt, Incorporated (LEG) $0.30q>$0.31q
- $181 Eaton Vance Tax-Advantage Global (ETO) $0.15q>$0.18q

Sales: During October, I sold my entire position in INTC at a substantial gain. INTC has not increased its dividend since August 2012.

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

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

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(Photo: sanja gjenero)