Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in July, extending the streak to 5 months after February’s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 19 of the last 20 months.
|Div. Changes YTD||(402)||-0.35%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $203, and Yield on Cost (YOC) increased 0.05%. I finally crossed the elusive $6,000 mark. Hopefully, more stable markets and fewer dividend cuts will allow me to reach the $7,000 level more quickly. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:
Purchases: The $350 increase in annual dividend income and (0.02%) decrease in YOC related to the following purchases (yield at the time of purchase):
- $53 Nucor Corp. (NUE) 3.42%
- $103 Emerson Electric Co. (EMR) 4.16%
- $194 Vanguard Long-Term Bond ETF (BLV) 5.49%
All the purchases, except BLV, lowered my YOC. 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 $31 decrease in annual dividend income and (0.03%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- $3 Canadian National Railway Company (CNI) $0.200q>$0.217q 0.00%
- $2 Vanguard Long-Term Bond ETF (BLV) $4.02a>$4.04a 0.00%
- $1 Realty Income Corp (O) $0.14206m>$0.14237m 0.00%
- ($4) iShares Investment Grade Corp. Bond (LQD) $5.80a>$5.58a 0.00%
- ($12) SPDR S&P Dividend (SDY) $2.15a>$2.00a -0.01%
- ($21) Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO) $1.78m>$1.71m -0.02%
Sales: The ($116) decrease in annual dividend income and 0.10% increase in YOC related to the following sale:
- ($116) Vanguard High Dividend Yield Indx ETF (VYM) 0.10%
In July I continued the process of trimming back my ETFs/CEFs income holdings with the sale of VYM. I will continue to reduce my holdings in this area each month.
Based on year-to-date results, I am going to raise my revised estimate of annualized dividend income on December 31, 2009 to $6,500 from $6,300.
That’s it for this time. The next monthly progress update will be early September.