Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in July, starting a new streak of 1 consecutive months of increases after June 2010’s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 30 of the last 32 months.
|Div. Changes YTD||-100||-0.03%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income decreased $427, and Yield on Cost (YOC) increased 0.01%. This month’s changes were a net of new purchases and dividend changes (no sales for the month). 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):
- $201 AT&T, Inc. (T) 6.91% [Analysis]
- $177 Cincinnati Financial Corp. (CINF) 5.83% [Analysis]
- $73 Wal-Mart Stores Inc. (WMT) 2.45% [Analysis]
T and CINF increased my YOC, while WMT lowered it. 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 $24 decrease in annual dividend income and the 0.02% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- ($9) MLP Infrastructrue ETN (MLPI) $1.63a>$1.55a
- ($5) Invest Grade Corp Bond (LQD) $5.59a>$5.53a
- ($2) Intermediate-Term Bond ETF (BIV) $3.43a>$3.41a
- ($4) U.S. Preferred Stock Index (PFF) $2.33a>$2.26a
- ($2) Long-Term Bond ETF (BLV) $3.95a>$3.94a
- $1 Realty Income Corp. (O) $0.14331q>$0.14362q
- ($3) Emerging Markets Sovereign Debt (PCY) $1.66a>$1.65a
Sales: There were no sales during the month.
With this month’s strong recovery, I still on target to achieve my goal of an annualized dividend income of $9,500 by December 31, 2010 and could achieve it as early as next month. I continue to 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 September.
(Photo: sanja gjenero)