Monthly Progress Update – June/July 2009

I realized that I did not publish my progress update in July or July 2009 because of traveling in late July 09/early July 09. In general, the summary for June/July 2009 is that dividend portfolio is showing some stability in capital value. The strength is market is also reflected in my portfolio total value. I don’t know what is there in store for future, but I think I can have some control if I buy carefully. I initiated four new starter positions. Attached below is the summary table to reflect the status as of July 31, 2009.

June-July 2009

Dividend Tree Monthly Progress : June/July 2009

Portfolio Status Update

  • The total portfolio dividend cash flow was $1612 (up from $1444). This change was due new purchases.
  • The portfolio’s total yield on cost went down to 4.82%% (from 5.11%).

New Purchases

  • Purchased K with annualized dividends of $37.50 (2.4% of total portfolio dividends). The purchase yield was 3.45%.
  • Purchased MCD with annualized dividends of $40.00 (2.6% of total portfolio dividends). The purchase yield was 3.59%.
  • Purchased ADM with annualized dividends of $34.72 (2.2% of total portfolio dividends). The purchase yield was 2.10%.
  • Purchased EMR with annualized dividends of $55.44 (3.3% of total portfolio dividends). The purchase yield was 4.10%.

Additions to Existing Positions - None

Selling - None

General Comments

  • My over exposure to AOD for total portfolio dividends is automatically getting reduced since I am not adding to my existing position. My exposure has reduced to 15.8% from January 2009 high of more than 20%.
  • It is most likely that I will miss my year end goal to reach total dividend income of $3000. I am holding on to cash expecting that there will be better opportunities (i.e. at lower price levels). Most of the stocks on my shopping list are at higher end of my fair value buy range. Therefore, I am continuing to pursue my year end goal instead of revising the goal. I would have revisited and revised my goal if I did not have cash waiting to be deployed.

The next monthly progress update will be on September 1, 2009. In addition, I will also post an article on my quarterly risk analysis of my dividend portfolio.

6 Responses to “Monthly Progress Update – June/July 2009”

  1. Mike says:

    Also, how do you come to 5.1% for JNJ? When I look it up, it shows a yield of 3.25% as of today.

    • Mike,

      (1) 5.1% is in the context of my dividend income. i.e. Of the total dividend from my portfolio, I recieve 5.1% from JNJ. It does not show dividend yield. The reason I track this is becuase I want to limit my dividend risk to max of 5% from a single position.

      (2) Expecting 5.1% yield is not completely unrelistic. If JNJ keeps growing the dividends, one will get 5.1% yield-on-cost in few years.

      Best Wishes,

  2. Mike says:

    Glad to see you buying EMR, I’ve been in it for a while, and would love to see it make some gains.

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