Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in August, extending the streak to 2 consecutive months of increases after June 2010′s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 31 of the last 33 months.
|Div. Changes YTD||-104||-0.06%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $330, and Yield on Cost (YOC) decreased 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 $399 increase in annual dividend income and 0.02% decrease in YOC related to the following purchases (yield at the time of purchase):
- $79 McDonald’s Corp. (MCD) 3.12% [Analysis]
- $81 General Dynamics Corp. (GD) 2.64% [Analysis]
- $90 Automatic Data Processing, Inc. (ADP) 3.37% [Analysis]
- $149 iShares S&P U.S. Preferred Stock Index (PFF) 5.67%
Only PFF increased my YOC, while three securities 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 $4 decrease in annual dividend income and the 0.03% decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- ($4) Invest Grade Corp Bond (LQD) $5.53a>$5.48a
- $1 Long-Term Bond ETF (BLV) $3.94a>$3.95a
- ($2) Intermediate-Term Bond ETF (BIV) $3.41a>$3.39a
- ($3) Emerging Markets Sovereign Debt (PCY) $1.65a>$1.64a
- $4 Clorox Corporation (CLX) $0.50q>$0.55q
Sales: The $65 decrease in annual dividend income and the 0.04% increase in YOC related to the following sales:
- ($65) AFLAC Inc. (AFL)
This month I exceeded my 2010 goal of $9,500 in annualized dividend income. With four months to go, I am confident of achieving $10,000 in annualized dividend income by December 31, 2010, assuming minimal dividend cuts.
That’s it for this time. The next monthly progress update will be early October.
(Photo: sanja gjenero)