Purchases: The $633 increase in annual dividend income and 0.10% increase in YOC related to the following purchases (yield at the time of purchase):

• 229 CTL (9.90%)
• 64 PG (3.43%)
• 102 GPC (4.92%)
• 118 LLY (5.73%)
• 120 BLV (5.45%)

All the purchases, except PG, increased 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 $5 increase in annual dividend income and 0.00% no change in YOC related to the following dividend changes (a=dividend stated in annual terms, q=quarterly, m=monthly):

• 12 PG $0.40q>$0.44q 0.01%
• 11 RY $0.40141q>$0.44365q 0.01%
• (18) ETO $1.90m>$1.84m -0.02%

The change in RY relates to currency conversion as a result of the U.S. dollar weakening against the Canadian dollar.

Sales: The ($478) decrease in annual dividend income and (0.03%) decrease in YOC related to the following sales:

• (228) NNN (0.07%)
• (180) BBT  (0.02%)
• (70) PID 0.06%

During May, BBT cut its dividend and I immediately sold my entire position. Also in May, NNN froze its dividend. It was one of my larger holdings, so I reduced my position my 50% and will watch for additional signs of a dividend cut.

The ETFs/CEFs, volatility in their dividends does not align with my income portfolio’s goal of consistently growing income. In May I started the process of trimming back my ETFs/CEFs income holdings with the sale of PID. I will continue to reduce my holdings in this area each month.

Based on year-to-date results, I believe my revised estimate of $6,300 of annualized dividend income on December 31, 2009 is still obtainable.

That’s it for this time. The next monthly progress update will be on Saturday, July 11th.