Once again it is time for a goals/progress update. I am pleased to report that annualized dividend income rose in August, extending the streak to 6 months after February’s decline. Since I began publicly tracking annualized dividend income in November 2007, it has increased in 20 of the last 21 months.
|Div. Changes YTD||(417)||-0.36%|
The above information covers the current month and year-to-date through the current month.
For the month, annualized dividend income increased $275, and Yield on Cost (YOC) increased 0.08%. This month’s changes were a net of new purchases, dividend changes and sales. Let’s examine each of the these categories:
Purchases: The $542 increase in annual dividend income and (0.06%) decrease in YOC related to the following purchases (yield at the time of purchase):
- $112 Genuine Parts Co. (GPC) 4.42%
- $53 Automatic Data Processing Inc. (ADP) 3.48%
- $133 iShares iBoxx $ Invest Grade Corp Bond (LQD) 5.57%
- $105 Vanguard Intermediate-Term Bond ETF (BIV) 4.41%
- $139 Vanguard Intermediate-Term Bond ETF (BIV) 4.38%
All the purchases, except LQD, 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 $15 decrease in annual dividend income and (0.01%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
- $3 Clorox Co. (CLX) $0.46q>$0.50q 0.00%
- ($18) Eaton Vance Tax-Advantaged Global Dividend Opportunities Fund (ETO) $1.71m>$1.65m -0.01%
Sales: The ($252) decrease in annual dividend income and 0.15% increase in YOC related to the following sale:
- ($66) Vanguard Dividend Appreciation ETF (VIG) 0.09%
- ($76) Manulife Financial Corporation (MFC) 0.02%
- ($110) Royal Bank of Canada (RY) 0.04%
In August I continued the process of trimming back my ETFs/CEFs income holdings with the sale of VIG. I will continue to reduce my holdings in this area each month. MFC cut is dividend in August, so I immediately liquidated my position. Also during August, RY announced another C$0.50/share dividend. This ensures that 2009 will be flat with 2008. As such, I just sold my entire position in RY. Ironically, this is one of the few sells resulting from a flat/cut dividend that I recognized a gain on.
Based on year-to-date results, I am going to raise my revised estimate of annualized dividend income on December 31, 2009 to $6,700 from $6,500.
That’s it for this time. The next monthly progress update will be early October.