Portfolio Status Update

• The total portfolio dividend cash flow was $1786 (up from $1612 in August 2009). This change was due to new purchases.
  
• The portfolio’s total yield on cost went up to 5.21% (up from 4.82% in August 2009)

New Purchases

• Purchased JW-A with annualized dividends of $36.00 (2.0% of total portfolio dividends). The purchase yield was 1.9%.
• Purchased DOV with annualized dividends of $53.00 (3.0% of total portfolio dividends). The purchase yield was 2.94%.
• Purchased WMT with annualized dividends of $44.00 (2.4% of total portfolio dividends). The purchase yield was 2.21%.

Additions to Existing Positions

• Added SYS, annualized dividends is now $77.00 (4.3% of total portfolio dividends).

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 14.2% (from more than 20% in January 2009).
• As we enter the last quarter of calendar year, it is almost certain now 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 quite above my high end of 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.

Later this week, I will publish the quarterly risk analysis.

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.

Summary for May 2009 is that my dividend portfolio is showing some signs of stability in value. The volatility seen in 1Q2009 is reduced. I initiated one new starter position. Attached below is the summary table to reflect the status as of May 31, 2009.

Portfolio Status Update

• The total portfolio dividend cash flow was $1444 (up from $1380). This change was due new purchases.
• The portfolio’s total yield on cost crawled up to 5.11% (up from 5.07%).

Dividend Tree Monthly Progress : May 2009

New Purchases

• Purchased VZ with annualized dividends of $64.4 (4.0% of total portfolio dividends). The purchase yield was 6.35%.

Additions to Existing Positions

• None

Selling

• None

General Comments

• I am continuing to be positive about many opportunities out there. I am being patience and will continue to hold my capital (if necessary).
• Now that the second half of the year has started, I will be closely monitoring my ability to meet my year end goal or whether it needs revision. As of today, I am still positive that I will be able to meet my year end goal of $3000 in dividend income.

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

My dividend portfolio consists of stocks, exchange traded funds, and closed-end funds. Since all of them are dividend focused and provide cash flow, I look at this together (and not standalone).

In general, companies are showing reduced earning, paring down growth plans and expenditure, and slashing and suspending dividends. Not only that many companies are not able to look forward and predict their own earning expectations. To me, not able to put an expectation is a sign that management is either not able to plan (clueless?) or not sharing the true state of their business. This recession wind is clearly separating chaff from wheat. Against all the sky is falling scenarios, I am continuing to invest in some really good companies at bargain prices.

Year 2009 Quartely Update

The status or update is as follows:

1. Dividend cash flow was $1380 per year.
2. Yield on my original investments (YOC) is 5.07%.
3. Year-to-Date the portfolio lost 1.6% of the value (relative to loss of -4.90% in SPY); and
4. At present, I hold 22 stocks.

Following is the summary of changes made

• Initiated starter positions (i.e. new purchases) in UL, PG, PEP, PAYX, TEG
• Reduced number of shares in GE. After dividend cut, moved to value/opportunity portfolio.
• Added to existing position in BAC and WFC, move them to value/opportunity portfolio.
• Exited from PFE and WL due to dividend cuts
• Added to existing position in DUK and O. Continuing to monitor in dividend portfolio.

In addition to these tangible targets, I had few other intangible areas of portfolio management that I needed to work on. These are:

1. Manage asset allocation and diversification from risk-to-dividend viewpoint: I have started using risk management using 5% max limit and invest only in medium-to-low risk dividend.
2. Invest in international dividend paying companies: I have started investing in stocks for international dividends. Buying stock of Unilever is an example.

In the next post, I will present the quarterly results of my risk analysis for my dividend portfolio.

Some stability… that’s the summary of my dividend portfolio’s progress for the month of March 2009. The month of March had some good opportunities. I initiated few starter positions in ETFs and stocks which I had been waiting for to fall into my buy range. Attached below is the summary table to reflect the status as of March 31, 2009.

Portfolio Status Update

• The total portfolio dividend cash flow was $1380 (up from $1317). This change was combination of dividend cuts (WFC), new purchases (PG), and additions (DUK and O).
• The portfolio’s total yield on cost crawled up to 5.05% (up from 4.94%).

Progress Update for March 2009

New Purchases

• Purchased PG with annualized dividends of $48 (3.5% of total portfolio dividends). The purchase yield was 3.06%.

Additions to Existing Positions

• Added to DUK with total annualized dividends now at $85 (6.1% of total portfolio dividends). The purchase yield was 7.41%.
• Added to O with total annualized dividends now at $115 (8.3% of total portfolio dividends). The purchase yield was 10.67%.

Selling

• None

General Comments

• I am continuing to hold WFC even tough it cut its dividend. This is my third stock (BAC and GE being other two), that I decided to continue to hold for long term. As of today, based on the information that is out there, I believe these three corporations will continue to exist for 10 years and beyond. In addition, the funds that will become available after selling of these positions will not make any significant impact on my portfolio.
• In my index portfolio, I also initiated starter position in VWO.

The next monthly progress update will be on May 1, 2009. The month of March is also the end of 1Q 2009. Shortly, I will publish the risk analysis of my dividend portfolio.