Investment Goals for 2017 Check In… and Goals for 2018

2017 Investment Goals

At the beginning of 2017 – which was also the launch of Tallinvesting.com – I formulated five investment goals for the year.

  1. Contribute $30,000 to the portfolio
  2. Achieve forward dividend income of $3,500 by the end of 2017
  3. Receive $3,000 dividend income throughout 2017
  4. Keep forward dividend income as a % of my Portfolio  at >3.5%
  5. Keep trading cost < 150 

With 2017 in the books, let’s check back how I did on these goals.

With regards to Goal #1 I was pretty skepticalestimating that contributing $30,000 to my Portfolio would be a stretch. Turns out my fear wasn’t warranted as I managed to add $43,446 in capital in 2017. Goal achieved! 

Goal #2 was about getting my 12 month projected forward dividend income to $3,500 at the 31st of December. As can be seen in the graphic below, my forward dividend income at the end of 2017 was $3,960 annually (or $330 per month).  Again, Goal achieved! 

Goal #3 was about the dividends I planned to receive between Jan 1st and December 31st of 2017. While the target was $3,000 (see blue line below) – I ended the year with $3,173 in received dividends (green line).

As you can see in the chart, September was the month I crossed the line and started to beat the target. Not surprising since I almost received $400 in dividends that month. Goal achieved! 

With goal #4 I track my forward dividend income (goal #2) as a percentage of my portfolio contributions – ie my yield on cost (YOC).  In buying stocks I try to maintain a balance between high yielders (such as most REITS) and low yielders with above average dividend growth rates (stock like SBUX, DAL). Overall my goal is to obtain a minimum of 3.5% YOC.

At the end of 2017 my forward dividend income stood at 3.86% as a percentage of my portfolio contributions (chart below). Goal achievedand we are four for four here!

Finally, goal #5 is about keeping my trading cost low. As I do not my consider myself a trader but an investor, my ideal holding period for a stock is forever. By definition this allows me to keep my trading cost modest.

But while my goal was to keep my trading cost below $150 for the year, my actual trading fees came to $197. Goal not achieved!

Final score: four out of five 2017 investment goals achieved!

2018 Investment Goals

Turning towards the new year, I strive to achieve the following five updated investment goals:

  1. Contribute $25,000 to the portfolio
  2. Achieve forward dividend income of $6,000 by the end of 2018
  3. Receive $5,000 dividend income throughout 2018
  4. Keep forward dividend income as a % of my Portfolio  at >3.5%
  5. Keep trading cost < 100 

Goals #1, #2 and #3 are more modest in comparison to 2017.

I expect to be able to allocate significantly less capital to my portfolio this year.  However, with dividend raises continuing to kick in – the power of dividend growth investing – goals #1 and #2 should be attainable.

Goal #4 should also be doable if I continue to buy a mix of high-yielders and low-yielders (but with high dividend growth).

Reduced buying activity ensures that I meet my trading cost goal (#5) for 2018, as I failed miserably here for 2017.

What do you think about these goals? Did you make your 2017 goals and what are yours for 2018? Leave a comment/reply to share your thoughts!

Dividend Update: December 2017

It’s time for my favorite type of post: a tally of the dividends I received in the prior month.

Given my strategy of DGI, it is really the dividend payouts that I care about. For each of the companies I invest in, I like to see a steady and growing stream of dividend payouts.

So how did I do in December?

Last month 24 companies sent me a dividend payout, adding up to a total of $373.

With the sole exception of September 2017 (which came in with a dividend tally of $379) this was my highest amount ever. $400 in dividends in a single month is coming real close!

December’s $372 also adds nicely to my dividend goals for 2017. In a next post I will revisit my goals for 2017 and add them to see whether I indeed got to my $3,000 goal for the entire year.

The following table shows the tickers of the companies that made a December 2017 dividend payout to my portfolio.

It features the dividend amount I received and any change in payout as compared to the last payout moment.

TickerDividends ReceivedDividend per Share Change
WFC$13.65
SBUX$22.5020.00%
GWW$6.40
F$22.50
ADM$32.00
DAL$24.40
AMGN$20.70
MGA$13.75
UTX$7.00
ROK$8.359.87%
EMR$24.251.04%
JNJ$10.08
ADI$9.00
UL$12.651.86%
STAG$5.88
QCOM$28.50
IP$14.403.78%
GLW$15.50
VFC$13.809.52%
BP$18.00
TROW$14.25
GILD$13.00
CLDT$11.00
TRV$10.80

 

The fact that 24 companies sent me dividend checks is great in and of itself. But out of those 24 there were 6 companies who decided to raise their pay-outs. Really putting the growth in Dividend Growth Investing here.

Within those dividend increases three stand out.

Starbucks decided to turn my dividend Tall into a Grande by raising it by 20% (!). Double digit dividend increases are rare, but Starbucks have been serving them for years now. I hope they can keep it up, and continue to drive growth in China – opening a new store every 15 hours –  and even in the home of the espresso, Italy.

The other dividend increase that stands out is that of Rockwell Automation, coming in at nearly 10%. The company’s stock price has been on a tear almost all of 2017 and was pursued by another company in my portfolio – Emerson.

Finally, VF Corporation also delivered a near 10% dividend increase. The company – with it’s broad portfolio of brands – continues to do well and has proven to be a reliable dividend payer.

Comparing the dividend payout of December 2016 to December 2017 (below) shows an increase from $180 to $373- YoY growth of 107%.

How was your December and its dividend?  Leave a comment/reply to share your thoughts!