Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in September, extending the streak to 7 months after February’s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 21 of the last 22 months.
|Div. Changes YTD||(446)||-0.38%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $243, and Yield on Cost (YOC) decreased (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: The $432 increase in annual dividend income and (0.05%) decrease in YOC related to the following purchases (yield at the time of purchase):
- $83 Johnson & Johnson (JNJ) 3.24%
- $94 SYSCO Corporation (SYY) 3.71%
- $255 iShares iBoxx $ Invest Grade Corp Bond (LQD) 5.46%
All the purchases, except LQD, lowered my YOC. As noted in earlier updates, I generally expect YOC to drop each month since most new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset it.
Dividend Changes: The $29 decrease in annual dividend income and (0.02%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- $5 Chevron Corporation (CVX) $0.65q>$0.68q 0.01%
- ($2) Vanguard Inter-Term Bond ETF (BIV) $3.48m>$3.46m 0.00%
- $9 iShares iBoxx $ Invest Grade Corp Bond (LQD) $5.56m>$5.79m 0.00%
- ($18) Eaton Vance Tax-Adv. Global Dividend Fund (ETO) $1.65m>$1.59m -0.01%
- ($23) Vanguard REIT Index ETF (VNQ) $2.67m>$2.32m -0.02%
Sales: The ($160) decrease in annual dividend income and 0.06% increase in YOC related to the following sale:
- ($160) SPDR S&P Dividend (SDY) 0.06%
In September I continued the process of trimming back my ETFs/CEFs income holdings with the sale of SDY. I will continue to reduce my holdings in this area each month.
Based on year-to-date results, I am going to raise my revised estimate of annualized dividend income on December 31, 2009 to $7,000 from $6,700.
That’s it for this time. The next monthly progress update will be early November.
(Photo: sanja gjenero)