Sunday, July 1, 2012

Dividend Growth Portfolio, End of 1st Half Update

As we roll into July, it signifies the end of the 1st half of the year! I typically do a more in depth analysis of my progress this year at this time, so here goes.

1. Activity Review
First, there was no activity in June, so my annualized dividend remains the same, about $20 short of the full year goal.

New Purchases
There were no new purchases this month

There were no equities divestitures this month.

Intrinsic Dividend Changes

June 2012 Annualized Dividend: $3978.86

+ $00.00 (from new purchases)
-  $00.00 (from sales)
+ $00.00 (from intrinsic changes)

End of 1st Half 2012 Annualized Dividend: $3978.86
End of 2012 Goal: $3800 to $4000

2. Income Review
Second, end of the first half means I can take a look at my actual dividends received this year (rounded to the dollar)

Dividends Received: $1768
2012 Income Target: $3450

Given my annualized dividend stream, I should expect to receive another $1900-$2000 in the second half. This means I'm on track to exceed my 2012 target income. Last year, my goal was $2700, and the actual FY2011 income was $3030. It looks like I will achieve a similar beat (~10%) this year.

3. Growth Review
Third, I review where my income growth has come from this year, and my goals for 2013

Intrinsic Dividend Growth: $259.78, or 7.4% y/y
New Funds / Rebalance: $209.16, or 6.0% y/y

End of 2013 Annualized Dividend Goal: $4700 to $5000
2013 Income Goal: $4200

As you can see, I'm pretty aggressive with my income growth goals, targeting 20% growth annually. This is why keeping tabs on where the growth comes from is important. I believe I can achieve 10% growth from intrinsic dividend growth, and 10% from new funds. Based on my 1H 2012 numbers, it looks like it is very much possible. I still have 7 companies which raise dividends in 2H (BNS, TD, CMI, MC, MSFT, EMR, BA), and a bit of new cash I haven't deployed yet. I think I will meet both 10% targets for 2012.

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