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Sat. Aug. 7, 2010

Progress Update – July 2010 *

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.

My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2010 Investing Goals post. Below is an updated version of the table found in the original post.

Description Dividend
Income
Annualized
Yield
on Cost
2027 Goal 110,000 20.00%
2017 Goal 30,000 10.00%
2010 Goal 9,500 5.00%
December/2009 7,274 4.84%
Purchases YTD 2,306 -0.17%
Div. Changes YTD -100 -0.03%
Sales YTD -175 -0.01%
July/2010 9,305 4.63%
Purchases 451 0.03%
Div. Changes -24 -0.02%
Sales 0 0.00%
June/2009 8,878 4.62%

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 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)

M&T Bank Corp.


4 Responses to “Progress Update – July 2010 *”

  1. John C says:

    One subject I wish you’d write a column about is how us average folks can best keep track of our dividend portfolios, in terms of Yield on Cost and similar metrics…

    My online broker account shows me my stock prices, 52 week high and lows, percent and $ gains and losses, but has nothing in their system allowing me to track YOC and similar things, as far as I can tell… And, I’m not aware of any 3rd party website, such as Wikiinvest, that does that either.

    Dividends are frequently changing (for the better, we always hope). And some stocks we may have automatic dividend reinvestment, while others we may have go to cash for our own handling… And the idea portfolio may have 30 or so different issues.

    All of the above makes it a nightmare to track to keep track of, apart from what my online brokerage account shows me. HELP!!!!

  2. D4L says:

    John C: Take a look at DFL-Portfolio.xls (http://dividendsvalue.com/tools/excel-models/) and the two articles that goes with it.
    * IRR as an investment metric, presented in The Winning Score – Part 2 of 2
    * Yield On Cost as an investment metric, presented in Tracking Yield On Cost

    Best Wishes,
    D4L

  3. John C says:

    Thanks very much for the pointer on those Excel tools. Had no idea previously they were part of your very good web site and past posts…

    Unfortunately for me, after reviewing them, I had the impression one pretty much would need to be an accountant (or at least have an accountant’s skill sets) in order to maintain and use that kind of a set-up in MS Excel.

    And, as a retired big city newspaper journalist, my skill set leans more toward words and less toward numbers. I can read and understand financial reports and 10Ks and such… But involved Excel calculations was never my strong point.

    Given that it’s a relatively common calculation/need, I’d think someone somewhere would have created a simpler plug-in-the-values web interface that would handle those kinds of calculations. Heck, Google will translate my documents on-the-fly from English to two dozen or so other languages…(sort of).

    I’ve got all the data and values for my own portfolio… But managing that kind of a spreadsheet I think would be beyond the normal endeavors of me and most other “regular” folks, :-(

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