I can’t say I’ve ever been one to write down my goals. However, over and over I hear how productive it can be to write them down, how it should increase my odds of achieving them. So, in the interest of trying something new, I thought I’d take a crack at writing down my investing goals for the dividend Portfolio for 2018. If nothing else it should be a kick to look back at these a year from now and see how I did.
I did have one dividend portfolio goal I set in 2017, but I didn’t write it down (as usual). It was to achieve $7,200 ($600/mo. average) in annual forward dividend income by year’s end, which I did.
Since this is my first time writing down goals, I’ll keep the number of goals to a minimum. I suspect that over the years I’ll be able to better refine the goals I set, or the specifics that go along with achieving those goals. So without further adieu…
Portfolio Goals for 2018
1) Invest at least $15,000 of new capital in the Portfolio
I must say, I feel pretty good about this one, mainly because I’ve been able to do this each of the past two years. So you may be asking, “Why not set the goal higher?” Well, my first child will be off to college this coming Fall (not sure where yet), and who knows what kinds of expenses I’ll see.
2) Generate $1,800 in options income to then invest in the dividend Portfolio
This one is a big unknown. I only started trading options early last year, and while I deemed it to be successful considering I generated over $1,200 in about 10 months, the fact is that maybe things just fell my way last year. Maybe I won’t be so lucky this year, and I’ll find it much more difficult to generate options income. So, I’m throwing out a target of $150/mo. on average – about 25% more per month than I was able to achieve last year.
3) Reach $8,700 in annual forward dividend income
I’m starting 2018 with an annual forward dividend income of about $7,317 (or $609.75/mo.). The goal number would require nearly $1,400 in forward dividend income be added over the course of the year. This would put me at an average of $725.00/mo. by year’s end. I think I can get to around $8,400 without too much trouble if I: a) invest the $15K + $1.8K mentioned above at my current portfolio yield of 2.52%, b) reinvest the $7,317 in forward dividends mentioned above at my current portfolio yield of 2.52%, and c) pick up about an average 6% dividend raise across the current portfolio holdings. Interestingly enough, the largest chunk of that increase in annual forward dividend income would come from the dividend raises. Getting to $8,700 in annual forward dividend income could be possible by investing more than $15K in new capital, generating more than $1.8K in options income, by investing the new money (or the reinvested dividends) at a higher yield than 2.52%, or getting a larger average dividend raise than the projected 6%.
There you have them… 3 investing goals for the dividend portfolio for 2018. They seem achievable if things fall into place for me. Perhaps they’ll prove to be too conservative, or too aggressive… time will tell.
Happy New Year, everyone!
Have you found writing down goals to be beneficial? Have you noticed increase levels of success as a result? Please share what’s worked for you.