Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income increased in October, extending the streak to 4 consecutive months of increases after June 2010′s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 33 of the last 35 months.
|Div. Changes YTD||-66||-0.03%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $416, and Yield on Cost (YOC) was flat (0.00%). This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:
Purchases: The $833 increase in annual dividend income and 0.03% decrease in YOC related to the following purchases (yield at the time of purchase):
- $65 Johnson & Johnson (JNJ) 3.50%
- $244 Harleysville Group Inc. (HGIC) 4.38%
- $339 AT&T, Inc. (T) 5.94%
- $185 Automatic Data Processing, Inc. (ADP) 3.19%
Only T 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 $10 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):
- ($3) U.S. Preferred Stock Index (PFF) $2.36a>$2.30a
- $10 Illinois Tool Works Inc. (ITW) $0.31q>$0.34q
- $6 Leggett & Platt, Incorporated (LEG) $0.26q>0.27
- ($3) Invest Grade Corp Bond (LQD) $5.41a>$5.37a
Sales: The $427 decrease in annual dividend income and the 0.02% increase in YOC related to the following sale:
- ($427) Intermediate-Term Bond ETF (BIV)
With two months to go, I believe there is a good chance of achieving $11,000 in annualized dividend income by December 31, 2010, assuming no or minimal dividend cuts.
That’s it for this time. The next monthly progress update will be early December.
(Photo: sanja gjenero)