Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in September, extending the streak to 3 consecutive months of increases after June 2010′s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 32 of the last 34 months.
|Div. Changes YTD||-76||-0.04%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $500, and Yield on Cost (YOC) was flat (0.00%). This month’s changes were a net of new purchases and dividend changes. Let’s examine each of the these categories:
Purchases: The $1,017 increase in annual dividend income and 0.01% decrease in YOC related to the following purchases (yield at the time of purchase):
- $441 Universal Health Realty Income Trust (UHT) 7.36%
- $72 Colgate-Palmolive Co. (CL) 2.81%
- $137 Abbott Laboratories (ABT) 3.41%
- $119 Medtronic, Inc. (MDT) 2.68%
- $248 Alerian MLP Infrastructure ETN (MLPI) 5.62%
Only UHT and MLPI 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 $28 increase in annual dividend income and the 0.02% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- $12 U.S. Preferred Stock Index (PFF) $2.26a>$2.36a
- ($2) Intermediate-Term Bond ETF (BIV) $3.39a>$3.38a
- ($5) Invest Grade Corp Bond (LQD) $5.48a>$5.41a
- $6 Chevron Corp. (CVX) $0.68q>$0.72q
- $20 Harleysville Group Inc. (HGIC) $0.325q>$0.36q
- ($3) Emerging Markets Sovereign Debt (PCY) $1.64a>$1.63a
Sales: The $578 decrease in annual dividend income and the 0.03% decrease in YOC related to the following sales:
- ($578) Long-Term Bond Index ETF (BLV)
This month I exceeded my 2010 revised goal of $10,000 in annualized dividend income. With three months to go, I there is a good chance of achieving $11,000 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 November.
(Photo: sanja gjenero)