Now that we’ve put 2022 in our rear-view mirror, it’s time to review my 2022 Portfolio Goals and see if I achieved them.

I felt like I was trending well over the course of the year, but that doesn’t matter, only the official results do.

At the start of 2022, I set 5 Portfolio goals.  These consisted of 3 primary goals and 2 bonus goals.

The primary goals included 1 investment goal and 2 dividend income goals.  The bonus goals included 2 sector weighting goals.

This past July I posted my Mid-Year Review of 2022 Portfolio Goals, and I was feeling good regarding the prospects of achieving the majority of my goals, especially the primary ones.

Of course, plenty can change in 6 months time.  So, let’s see how I finished the year and if I can feel satisfied with my accomplishments.

 

Review of 2022 Portfolio Goals

1) Invest at least $10,000 of new capital in the Portfolio

This was my 4th year in a row having this $10K investment goal.  I’m planning to bump this up in 2023!

At mid-year, I’d already invested $6,564.29 of the $10K goal, easily past the halfway point.

As it turns out, I improved upon my 1st half investing efforts and invested another $6,898.03 in the back half of the year.  In total, a net investment of $13,462.32.

I crossed the $10K investment mark in late November, then added to my total in December.

Since I have the most control of this goal compared to my others, I’d be sad if I didn’t achieve it.  Thankfully, 2022 was another successful year with regard to investment.

During 2022, I executed a total of 59 transactions…. 48 purchases and 11 sales.  The majority of the transactions (34) took place in the 2nd half of the year.

This transaction total of 59 was on par with what I did in 2021, but there was a stronger buy:sell ratio in 2022 than I had in 2021.

SUMMARY – GOAL MET!

 

2) Reach $16,200 in annual forward dividend income

I began 2022 with annual forward dividend income of $14,261.70 (or ~$1,188.48/mo.).  I’d need to add $1,938.30 in additional forward dividend income over the course of the year to reach my goal.

By mid-year, I’d already managed to add $1,042.52, or essentially 53.8% of my goal.  This left approximately $896 to go.

I was also ahead of pace in each category at the halfway point, getting better than average contributions (based on my estimates at the start of the year) from all 3 sources: reinvested dividends, dividend raises and new capital investment.

I achieved my goal by the end of November and padded my total in December.  I finished 2022 with a annual forward dividend income of $16,465.09, more than $265 past my goal.

My average monthly forward dividend income is now $1,372.09.

I ended up adding $2,202.56 to my forward dividend income in 2022.  That translated to a 15.45% YoY gain.

Here were the annual contributions from my 3 sources:

• Reinvested Dividends – $489.28 ($260.99 came in the 2nd half of the year)
• Dividend Raises – $1,173.82 ($521.02 came in the 2nd half of the year)
• Investment of Capital – $539.46 ($378.03 came in the 2nd half of the year)

SUMMARY – GOAL MET!

 

3) Obtain $15,100 in actual dividend income

I collected $13,466.05 in dividend income in 2021.  At the beginning of 2022 I targeted a ~12.13% increase for 2022, with a stretch goal of a 13% increase.  This would put my projected dividend total at $15,100 by year’s end, or $15,217 if I overachieved.

At the halfway point of 2022, I’d received $7,474.39.  This was less than half of what I needed for the year, but this tends to be the case at mid-year with my actual dividend income.  Because I was short of the halfway point at mid-year, this was the primary goal that was most in jeopardy of not being achieved, even though I thought I’d get there.

Luckily, things heated up a bit in the back half of the year and I raked in another $7,734.16 of dividend income.

So, at the end of 2022, my Portfolio generated $15,208.55 in dividend income.  I surpassed my goal by just over 0.7%.

I added $1,742.50 to my actual dividend income in 2022.  That was good enough for a 12.94% YoY gain.  Unfortunately, I just missed the stretch goal of a 13% YoY gain.

SUMMARY – GOAL MET!

 

Bonus Goal #1 – Increase the weighting of Technology in my Portfolio (make up half of the weighting difference needed to get in my target range)

I generally try to keep my Portfolio’s sector weightings within +/- 3 percentage points of the S&P 500 sector weightings.  I started 2022 with my Information Technology weighting 8.45 percentage points below that of the S&P 500 Tech sector (20.72% vs. 29.17%).  I didn’t think I could make up more than the 5.45 percentage point delta (8.45% – 3%) I’d need to get within the desired weighting range I have.  So, I shot for making up half the difference.  This meant that I needed to get my weighting difference in the Tech sector to be no more than -5.72 percentage points by the end of 2022.

Tech got punished in 2022, especially in the latter half of the year.  Thus, there should have been some decent prices on tech stocks, enticing me to invest and allowing me to make some headway towards this goal.

At the beginning of the year, I discussed possibly adding to my Skyworks Solutions (SWKS), Visa (V), Microsoft (MSFT) and Amdocs Ltd. (DOX) positions in order to make up some of the weighting difference.  By year’s end, I’d bought SWKS, V and MSFT multiple times each, as well as establish a new position in Accenture (ACN).

At the midway point of 2022, my Information Technology trailing percentage had been reduced to a difference of 7.74 percentage points.  Progress, but not close to half way yet.  At this point, I was leery of meeting my goal.

By year’s end, my Portfolio’s Information Technology weighting was 18.50%, while the S&P 500 had a weighting of 25.74%… the delta had been reduced a bit further, to 7.24 percentage points.  Unfortunately, this is a far cry from the 5.72 percentage point delta I was trying to reach, and thus I failed to achieve my goal.

While I did make some progress in 2022, the magnitude of the changes needed to be greater.

SUMMARY – GOAL MISSED!

 

Bonus Goal #2 – Decrease the weighting of Industrials in my Portfolio (make up half of the weighting difference needed to get in my target range)

In Bonus Goal #1 I was trying to increase my sector weighting, but here I’m trying to decrease it.  I’ve been overweight in the Industrials sector for some time.

I started 2022 with my Industrials weighting 5.95 percentage points above that of the S&P 500 Industrials sector (13.72% vs. 7.77%).

As in Bonus Goal #1, I am once again attempting to make up half the difference.  This meant that I needed to get my weighting difference in the Industrials sector to be no more than +4.47 percentage points by the end of 2022.

At the midway point of 2022, that weighting difference had increased to 6.22 percentage points (14.01% vs. 7.79%).  It was worse… not the progress I was looking for!  While I had trimmed 3M Co. (MMM) in the first half of the year, I basically cancelled out that weighting progress by initiating a position in Cummins (CMI).  Thus at mid-year, I had doubt that I might achieve this goal.

In the 2nd half of the year, I briefly helped myself by trimming my General Dynamics (GD) position, but essentially wiped out that progress by exchanging it for some more Caterpillar (CAT) shares.  Then to top it off, I established a position in FedEx (FDX), which moved me in the wrong direction.

While I was happy with the reshaping of my Industrials holdings, it didn’t help my sector weighting goal.  By year’s end, my Industrials weighting was 14.32%, while the S&P 500 had a weighting of 8.65%.  The weighting delta was reduced to 5.67 percentage points, barely much of a positive move compared to where I started the year.

SUMMARY – GOAL MISSED!

 

Summary

I’d say 2022 was another good year with regard to my Portfolio goals, even though I didn’t achieve them all.

I met all 3 of my primary goals.  I comfortably surpassed my new capital investment and annual forward dividend income goals, while I also met my actual dividend income goal with a little less margin.  Hard to argue with 3 for 3.

With regard to the 2 bonus goals, I didn’t meet either of them.  With the two bonus goals I was trying to increase the Information Technology sector weighting in my Portfolio, and decrease the Industrials sector weighting, such that I made up half of the difference that would bring them into my preferred weighting ranges.  Sadly, I wasn’t really close to meeting either goal.  At least the weighting differences were reduced in each case, just not nearly enough to reach either goal.  I guess I’ll have to settle for the incremental progress I made.

Well, at least my primary Portfolio goals were met in 2022.  Perhaps the bonus goals were a tad aggressive?  Anyway, no clean sweep of the Portfolio goals in 2022… perhaps it will happen in 2023.

My 2023 goals should be posted in the coming week, so keep your eyes open for that.

 

Were you successful in achieving your portfolio goals in 2022?  Did you manage to achieve all the goals, or just a select few?  I look forward to your comments.