Investment Goals for 2017

Having just launched this site, I figured it would be a good idea to list my dividend investing goals for 2017.

My ultimate goal is to create a reliable and growing dividend income stream. However, I break down my ultimate goal into yearly goals to see how I am faring.

  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 

#1 is pretty straightforward - but also the most stretching. Contributing 30,000 to my Portfolio in 2017 comes down to 2,500 a month, which will definitely require focus and discipline. However, I think it’s doable.

#2 entails getting my 12 month projected forward dividend income to 3,500 on the 31st of December. Given that my forward income right now is ~2,400 this goal is as ambitious as #1

Goal #3 is about the dividends I will receive between Jan 1st and December 31st of this year. My current projection for the year is ~2,400 so this means adding another 600 for the year. However, while every new buy will add income to my forward dividend income (goal #2), not every new buy means a full pay-out within calendar year 2017.

With goal #4 I track my forward dividend income (goal #2) as a percentage of my portfolio - 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.

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 - buy once and simply start collecting the dividend. As each new buy costs me 7.95 with Fidelity, I aim for no more than 20 trades in 2017.

What do you think about these goals? Leave a comment/reply to share your thoughts!