______________________________________________________________________________________________________________________________

Sat. Oct. 9, 2010

Progress Update – September 2010 *

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.

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 3,722 -0.18%
Div. Changes YTD -76 -0.04%
Sales YTD -788 0.00%
September/2010 10,132 4.62%
Purchases 1,017 0.01%
Div. Changes 28 0.02%
Sales -545 -0.03%
August/2010 9,635 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 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):

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)

M&T Bank Corp.


3 Responses to “Progress Update – September 2010 *”

  1. Matt says:

    just wondering if you can ellaborate on why you sold your long term bonds.

  2. Active Dividend Investor says:

    Congratulations on reaching your annualized dividend goals for 2010 early! I also like your decision to reduce your bond holdings given their current valuation in relation to other investment opportunities (dividend equities). Here’s to another (hopefully) good year of dividend increases for you (and me).