My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.

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 $405, and Yield on Cost (YOC) was down -0.02%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:

Purchases: The $526 increase in annual dividend income and -0.03% decrease in YOC related to the following purchases (yield at the time of purchase):

• $211 U.S. Preferred Stock Index (PFF) 6.0%
• $50 Leggett & Platt, Incorporated (LEG) 4.7%
• $85 Wal-Mart Stores Inc. (WMT) 2.8%
• $180 ConocoPhillips (COP) 3.5%

PFF and LEG raised my YOC, while all of the other stocks lowered it. As noted in earlier updates, I generally expect YOC to drop in most months since new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset the decline.

Dividend Changes: The $53 increase in annual dividend income and the 0.03% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

• $17 U.S. Preferred Stock Index (PFF) $2.35a>$2.40a
• $2 3M Co. (MMM) $0.525q>$0.55q
• $2 Consolidated Edison Inc. (ED) $0.595q>$0.60q
• $32 Owens & Minor Inc. (OMI) $0.177q>$0.20q

Sales: The $174 decrease in annual dividend income and the -0.02% decrease in YOC related to the following sale:

• $174 Integrys Energy Group, Inc. (TEG)

As a result of significant price appreciation and a failure to raise its dividend in 2010, I sold 67% of my TEG holdings in February. TEG is now a Golden Stock since I have recouped 104.5% of my original investment through dividends and share sales.

After March, I am still on track to reach my goal of $15,500 in annualized dividend income by December 31, 2011.

That’s it for this time. The next monthly progress update will be early May.

(Photo: sanja gjenero)

Dividends Received

Total dividends received during the month were $350.13, consisting of:

• $96.32 AT&T, Inc. (T)
• $42.40 Cincinnati Financial Corp. (CINF)
• $ 9.43 Nucor Corporation (NUE)
• $54.56 Abbott Laboratories (ABT)
• $33.92 Colgate-Palmolive Co. (CL)
• $36.65 Procter & Gamble Co. (PG)
• $76.85 CenturyLink, Inc. (CTL)

Securities Purchased

The following securities were purchased during the month:

• 32 Shares Cincinnati Financial Corp. (CINF) providing $51.20 in annual dividend income
• 106 Shares CenturyLink, Inc. (CTL) providing $307.40 in annual dividend income

Annualized Dividend Income

Including the above purchases, my annual PCP dividend income is now $3,714.41 at the current dividend rates. This is up $367.82 from last month’s $3,346.59 amount. The PCP has never experienced a monthly decline in annualized dividend income.

Portfolio Returns

• Month: 1.53%
• Year-to-date: 0.83%
• Life-to-date: 14.85% (annualized)

My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be mid-April.

Full Disclosure: Long all the aforementioned securities. See a list of all my income holdings here.

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(Photo: Arcelia Vanasse)

My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.

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 $408, and Yield on Cost (YOC) was down -0.06%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:

Purchases: The $668 increase in annual dividend income and -0.05% decrease in YOC related to the following purchases (yield at the time of purchase):

• $51 Cincinnati Financial Corp. (CINF) 4.84%
• $30 Colgate-Palmolive Co. (CL) 2.79%
• $165 McDonald’s Corp. (MCD) 3.31%
• $307 CenturyLink, Inc. (CTL) 6.52%
• $115 Owens & Minor Inc. (OMI) 2.61%

CINF and CTL raised my YOC, while all of the other stocks lowered it. As noted in earlier updates, I generally expect YOC to drop in most months since new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset the decline.

Dividend Changes: The $25 increase in annual dividend income and the 0.01% increase in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

• $17 AT&T, Inc. (T) $0.42q>$0.43q
• $1 Nucor Corporation (NUE) $0.36q>$0.3625q
• $7 HCP, Inc. (HCP) $0.46q>$0.48q

Sales: The $102 decrease in annual dividend income and the 0.04% increase in YOC related to the following sale:

• ($178) Progress Energy Inc. (PGN)
• ($107) Emerson Electric Co. (EMR)

I liquidated PGN since it failed to raise its dividend in 2010. As a result of significant price appreciation and a negative NPV MMA Diff., I sold 55% of my EMR holdings in February.

After February, I am still on track to reach my goal of $15,500 in annualized dividend income by December 31, 2011.

That’s it for this time. The next monthly progress update will be early April.

(Photo: sanja gjenero)

Dividends Received

Total dividends received during the month were $182.64, consisting of:

• $28.56 Automatic Data Processing, Inc. (ADP)
• $24.81 Wal-Mart Stores Inc. (WMT)
• $46.20 Kimberly-Clark Corporation (KMB)
• $44.82 Leggett & Platt, Incorporated (LEG)
• $38.25 Medtronic, Inc. (MDT)

The following securities were purchased during the month:

• 166 Shares Piedmont Natural Gas Co. Inc. (PNY) providing $185.92 in annual dividend income
• 16 Shares Procter & Gamble Co. (PG) providing $34.56 in annual dividend income
• 34 Shares Johnson & Johnson (JNJ) providing $65.62 in annual dividend income

Annualized Dividend Income

Including the above purchases, my annual PCP dividend income is now $3,346.59 at the current dividend rates. This is up $299.96 from last month’s $3,046.63 amount. The PCP has never experienced a monthly decline in annualized dividend income.

Portfolio Returns

• Month: (0.76%)
• Year-to-date: (0.76%)
• Life-to-date: 14.08% (annualized)

My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be mid-March.

Full Disclosure: Long all the aforementioned securities. See a list of all my income holdings here.

Related Posts
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- Where To Find Great Dividend Stocks
- Dividend Stocks Are My Conviction
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- Who is Raul Alvarez and Why Should We Listen to Him?

(Photo: Arcelia Vanasse)

My goals were defined in this December 1, 2007 Investing Goals post and updated in my 2011 Investing Goals post. Below is an updated version of the table found in the original post.

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 $374, and Yield on Cost (YOC) was up 0.01%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:

Purchases: The $434 increase in annual dividend income and 0.05% decrease in YOC related to the following purchases (yield at the time of purchase):

• $186 Piedmont Natural Gas Co. Inc. (PNY) 3.95%
• $31 Procter & Gamble Co. (PG) 3.01%
• $40 Harleysville Group Inc. (HGIC) 3.92%
• $177 Johnson & Johnson (JNJ) 3.47%

All of the above stocks lowered my YOC. As noted in earlier updates, I generally expect YOC to drop in most months since new investments will yield less than my current YOC, and dividend increases will not be sufficient to offset the decline.

Dividend Changes: The $42 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):

• $20 Automatic Data Processing, Inc. (ADP) $0.34q>$0.36q
• $1 Canadian National Railway Company (CNI) $0.2616q>$0.27141q
• $2 Realty Income Corp. (O) $0.14362m>$0.14425m
• $11 Sysco Corp. (SYY) $0.25q>$0.26q
• $8 U.S. Preferred Stock Index (PFF) $2.32a>$2.35a

Sales: The $102 decrease in annual dividend income and the 0.04% increase in YOC related to the following sale:

• ($102) Paychex Inc. (PAYX)

After January, I am still on track to reach my goal of $15,500 in annualized dividend income by December 31, 2011.

That’s it for this time. The next monthly progress update will be early March.

(Photo: sanja gjenero)

Asset Allocation

In the fourth quarter, my asset allocation was reasonably close to my target. My philosophy is to buy the best dividend stocks available and adjust my allocation using my 401(k) and other investments, when needed. None of the variances are above my 2.5% tolerance, so I will adjusted them with future purchases.

2010-Q4 Performance

For the year, each of my income portfolios outperformed the S&P, and all underperformed Berkshire Hathaway (BRK.B). Below are the YTD performances of various categories along with my S&P 500 benchmark (VFINX):

When weighted with results from 2008 forward, all my income investments out-performed the S&P. As I have previously stated, it is my desire to beat the S&P over the long-run, so I don’t pay a lot of attention to short-term performance either positive or negative. For more details on the performance of my income portfolios, including year-by-year performance and cumulative chart, please click here.

Passive Income

For Q4/2010 my passive income averaged $1,184/month, up slightly from the $1,010/month in Q3. The increase resulted from additional investments, dividend growth and from higher income on cash holdings as I moved them from a MMA to short-term bonds. The above amounts include all sources of passive income in my taxable accounts, primarily interest and dividends. It excludes my Roth IRA, 401(k) and blog income (which is not passive).

The next update will be in mid-April. As always, thanks for reading!

(Photo: sanja gjenero)

Dividends Received

Total dividends received during the month were $217.51, consisting of:

• $16.15 United Technologies Corp. (UTX)
• $8.71 Emerson Electric Co. (EMR)
• $34.56 Johnson & Johnson (JNJ)
• $20.74 McDonald’s Corp. (MCD)
• $29.04 The Coca-Cola Company (KO)
• $15.47 Consolidated Edison Inc. (ED)
• $84.70 Universal Health Realty Income Trust (UHT)
• $8.14 Owens & Minor Inc. (OMI)

Dividend Stock Purchases

The following securities were purchased during the month:

• 140 Shares Universal Health Realty Income Trust (UHT) providing $338.80 in annual dividend income
• 66 Shares Leggett & Platt, Incorporated (LEG) providing $71.28 in annual dividend income

Annualized Dividend Income

Including the above purchases, my annual PCP dividend income is now $3,046.63 at the current dividend rates. This is up $354.08 from last month’s $2,692.55 amount. The PCP has never experienced a monthly decline in annualized dividend income.

Portfolio Returns

• Month: 1.37%
• Year-to-date: 16.86%
• Life-to-date: 17.11% (annualized)

My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be mid-February.

Full Disclosure: Long all the aforementioned securities. See a list of all my income holdings here.

Related Posts
- 7 Low-Debt High-Rated Dividend Stocks
- Where To Find Great Dividend Stocks
- Dividend Stocks Are My Conviction
- 11 Low Beta, High Quality Dividend Stocks
- Who is Raul Alvarez and Why Should We Listen to Him?

(Photo: Arcelia Vanasse)

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.

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 $529, and Yield on Cost (YOC) was up 0.01%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:

Purchases: The $903 increase in annual dividend income and 0.05% decrease in YOC related to the following purchases (yield at the time of purchase):

• $97 Leggett & Platt, Inc. (LEG) 4.95%
• $339 Universal Health Realty Income Trust (UHT) 6.70%
• $183 Abbott Laboratories (ABT) 3.72%
• $284 MLP Infrastructure ETN (MLPI) 5.30%

LEG, UHT and MLPI increased my YOC, while ABT 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 $43 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):

• $5 U.S. Preferred Stock Index (PFF) $2.30a>$2.32a
• $6 Emerson Electric Co. (EMR) $0.335q>$0.345q
• $32 McDonald’s Corp. (MCD) $0.55q>$0.61q

Sales: The $417 decrease in annual dividend income and the 0.02% increase in YOC related to the following sale:

• ($417) Emerging Mkts Sovereign Debt (PCY)

I am pleased that I was able to reach my revised goal of $11,000 in annualized dividend income by December 31, 2010. To see my 2011 goals click here.

That’s it for this time. The next monthly progress update will be early February.

(Photo: sanja gjenero)

The tough financial environment we experienced over the last 2 years has helped me focus on higher quality stocks and in turn, my income portfolio is better equipped to handle  the inevitable downturn. As valuations increased, current yields declined prompting some income investors to chase higher-yielding and higher-risk stocks. My income portfolio’s 2010 risk rating will end very close to where it was in 2009.

Looking to 2011, I don’t see it much differently than 2010, with the possible exception of a correction sometime during the year.  I always welcome a correction as a buying opportunity. 2010 had fewer dividend cuts, I anticipate a similar level in 2011. On the plus side, I suspect 2011 will will see fewer companies failing to raise their dividends (dividend freezes). With that as a backdrop here are my updated goals going into 2011:

I left the income goals for 2027 and 2017 goals unchanged. However, it is very apparent that I will not make the YOC  targets for 2027 and 2017. I lowered 2027′s YOC from 20% to 10% and lowered 2017′s to 5.8%. I am setting my 2011 annualized dividend income goal at $15,500. To achieve this goal, I anticipate more robust dividend growth than we have seen in the last two years. The 2011 yield on cost of 4.70% assumes significantly lower dividend declines from holding less income ETFs with volatile dividends.

I am confident that I will finish 2011 with higher annualized dividend income than where 2010 ended. In addition, I feel good that my string of sequential months of higher annualized dividend income will continue through 2011.

If it were easy, everyone would do it and success wouldn’t be nearly as satisfying. Here’s to an exciting 2011!

(Photo: sanja gjenero)

Dividends Received

Total dividends received during the month were $525.54, consisting of:

• $94.08 AT&T, Inc. (T)
• $9.36 Nucor Corporation (NUE)
• $10.92 General Dynamics Corp. (GD)
• $56.56 Abbott Laboratories (ABT)
• $33.92 Colgate-Palmolive Co. (CL)
• $27.94 Procter & Gamble Co. (PG)
• $57.60 Harleysville Group Inc. (HGIC)
• $230.40 Harleysville Group Inc. (HGIC) – SPECIAL
• $4.76 PowerShares Emerging Mkt Debt (PCY)

Dividend Stock Purchases

The following securities were purchased during the month:

• 22 Shares Kimberly-Clark Corporation (KMB) providing $58.08 in annual dividend income
• 46 Shares Cincinnati Financial Corp. (CINF) providing $73.60 in annual dividend income
• 46 Shares Owens & Minor Inc. (OMI) providing $32.51 in annual dividend income
• 38 Shares Medtronic, Inc. (MDT) providing $34.20 in annual dividend income

Annualized Dividend Income

Including the above purchases, my annual PCP dividend income is now $2,692.55 at the current dividend rates. This is up $198.39 from last month’s $2,494.16 amount. The PCP has never experienced a monthly decline in annualized dividend income.

Portfolio Returns

• Month: 2.11%
• Year-to-date: 26.76%
• Life-to-date: 26.77% (annualized)

My PCP holdings are always available by selecting the Holdings option from the menu in the header. The next PCP update will be mid-January.

Full Disclosure: Long all the aforementioned securities. See a list of all my income holdings here.

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- To Infinity and Beyond!

(Photo: Arcelia Vanasse)