Most of the stocks that I own and write Covered Calls upon also pay dividends. Dividends occur on a regular basis and add significantly to my annual investment income. Year to date I have received a total of $5,136.60 in dividends in my various accounts. My year to date average monthly dividends received is currently $85.10. The year-to-date dividends currently represent about 31.93% of my average monthly investment cash flow and about 2.23% return on my current basis value.
My YTD dividends are up by $68.19 on a monthly average from last year. That represents an 8.65% increase to date year over year. I attribute the increased average dividends to a few companies raising their dividends and to my purchasing additional dividend paying stocks. During June, I received notice of the following dividends paid in various accounts for a total of $857.56.
Please notice that PGF is an ETF and pays dividends monthly. The annualized dividend yield for PGF is based upon the simple and false assumption that it will pay the same dividend each month for the next 12 months. The actual annualized dividend yield may be more or less than illustrated here.
I use my basis per share to determine the simple and annualized percentage return because I feel that it gives me a better representation of the value of the dividends as they relate to my portfolio. My basis may be above or below the market price which causes my return to be lower or higher than published yields for a stock. I calculate my basis per share as my acquisition price less any option premiums received on those shares. I do not use dividends to reduce my basis.