The decrease in MFC was due to currency conversion resulting from a strengthening U.S. dollar compared to the Canadian dollar. The TEG change corrects an errant share amount entered into my spreadsheet.
Once again it is time for a goals/progress update. December finally provided some relief from a dividend cut standpoint. My only cuts were in ETFs/CEFs and resulting from currency conversions. This allowed me to lower my exposure to high-yield and high risk securities. I am pleased to say that my annualized dividend income increased for the month, keeping alive the string of 13 consecutive months of increases dating back to December 2007 when I began tracking it. 2009 will be a challenge to keep the string going. I anticipate additional dividend cuts in the near-term.
My goals were defined in this December 1, 2007 Investing Goals post. I am pleased to note that both of my goals were achieved in 2008 - not may investors can say that. Below is an updated version of the table found in the original post.Description Dividend
Income
AnnualizedYield
on Cost2027 Goal 110,000 20.00% 2017 Goal 30,000 10.00% 2008 Goal 4,000 4.90% December/2007 3,054 5.00% Purchases YTD 4,424 0.91% Div. Changes YTD (47) -0.01% Sales YTD (1,795) -0.62% December/2008 5,636 5.28% Purchases 237 -0.10% Div. Changes (75) -0.07% Sales (108) -0.06% November/2008 5,582 5.51%
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 $54, and Yield on Cost (YOC) decreased -0.23%. These changes were driven by new purchases, dividend changes and sales. Let's examine each of the these categories:
Purchases: The $237 increase in annual dividend income and -0.10% increase in YOC related to the following purchases (yield at the time of purchase):
As a result of my focus on quality and lowering my portfolios risk, all the above purchases 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 ($75) decrease in annual dividend income and (0.07%) decrease in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):
As previously discussed, I am over-allocated in AOD and ETO from a dividend income standpoint. Over the next several months I plan to reduce my allocation in each by selectively selling a portion of my holdings. This will position me to better withstand a dividend cut from them.
That's it for this time. The next monthly progress update will be on Saturday, February 7th.
(Photo: sanja gjenero)
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Progress Update - December 2008
Posted by D4L | Saturday, January 03, 2009 | progress | 1 comments »________________________________________________________________
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div4,
Great post. You are doing very well. Thanks and continued good luck.