Once again it is time for a goals/progress update. As a result of selling BP plc (BP) and a dividend cut by Alpine Dynamic Dividend Fund (AOD), I must to report that annualized dividend income declined in June breaking the streak of 15 consecutive months of increases after February 2009′s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 29 of the last 31 months.
|Div. Changes YTD||-76||-0.01%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income decreased $34, and Yield on Cost (YOC) decreased 0.19%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:
Purchases: The $342 increase in annual dividend income and 0.07% decrease in YOC related to the following purchases (yield at the time of purchase):
- $116 Abbott Laboratories (ABT) 3.77% [Analysis]
- $106 The Coca-Cola Company (KO) 3.40% [Analysis]
- $120 Procter & Gamble Co. (PG) 3.15% [Analysis]
All three stocks 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 $201 decrease in annual dividend income and the 0.11% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- ($2) U.S. Preferred Stock Index (PFF) $2.36a>$2.33a
- ($1) Intermediate-Term Bond ETF (BIV) $3.44a>$3.43a
- ($2) Long-Term Bond ETF (BLV) $3.96a>$3.95a
- ($232) Alpine Dynamic Dividend Fund (AOD) $0.12m>$0.055m
- $27 Johnson & Johnson (JNJ) $0.49q>$0.54q [Analysis]
- $9 Pepsico, Inc. (PEP) $0.45q>$0.48q
Sales: As a result of BP’s inability to stop the oil flow in the gulf, I lost confidence in the stock and sold it just before its dividend cut. The entire $175 decrease relates to the sale of BP.
Even with this month’s setback, I am still on target to achieve my goal of an annualized dividend income of $9,500 by December 31, 2010 and I believe annualized dividend income of $10,000 by December 31, 2010 is still obtainable, assuming minimal future sales and dividend cuts.
That’s it for this time. The next monthly progress update will be early August.
(Photo: sanja gjenero)