Sunday, December 14, 2014

2014 Goals Achieved!



I started this investing journey exactly one year ago. At the time, I had just finished reading a sea of material about investing, stocks, dividends, balance sheets, and market behavior. I had already made my decision that my first purchase would be ExxonMobil (XOM), I was determined to take the plunge and start investing my first savings into the market, I knew I had learned a lot both from my months-long research and from diligently follow the blogs of many fellow admired dividend investors

It was hard not to be scared, it was all theory and no practice, but dividend investing is not trading, it is a long-term endeavor which makes it hard to "paper trade" and see how good you were. There's also the fact that "paper trading" allows you to control your emotions much better due to not having actual money at stake. I figured that the only way I was going to get practice was by actually doing it. 

So I set some goals for the year of 2014 based on both my expected income, saving ability and potential setbacks that can happen to anyone and I got started. At the time, everything seemed pretty ethereal, could it really be? By yearend next year I would be earning a small but noticeable income and this income would be permanent. If I were to stop investing, this income stream would keep coming my way and growing yearly above inflation, it required dedication and discipline but the income stream would be "permanent".

Here we are now, exactly one year later, with my main goal achieved, this year I have earned $311 in dividends which surpasses my goal of $300 for the year, and, considering my current average yield and current invested capital, If I were to stop investing, I could expect a monthly income next year of around $50/month. 

Sadly, my current shares yield an average of 2.8% which is slightly below the average I was looking for of 3%. Anyway I am not disappointed, the yield is close enough to my objective, and I expected not to to reach it perfectly when trying to invest in the best opportunities available. 

I am very happy with this year, this was the first step in what I hope will be a multi-year journey. I hope that we are all here in 20 years, reading about a much larger scale dividend income. Thank you for following me through this journey! As we reach the end of December, I will assess my prospects for next year, look at where I am at that point, and set up my next year goals. Stay tuned!


Summary of Goals


Dividend Income: 300$ (Achieved December 2014)
Average Yield: 3% (2.8% Not Achieved)
Forward Monthly Yield50$ (Achieved September 2014)


How is your investment year going?

23 comments:

  1. Congratulations on hitting your 2014 goals! Given the growth of your portfolio, the next few years should be exciting as you rapidly expand the dividends you receive each year. Soon enough they will start compounding on their own for you.

    Congrats again on a successful 2014!

    ReplyDelete
    Replies
    1. Hi writing2reality,

      Thanks you! I am quite pleased with the results achieved. I am looking forward for the next years, where the dividend income grows and the compounding starts working for me.

      Best,
      DividendVenture

      Delete
  2. DV,

    Congrats on reaching most of your goals this year. A successful first year for sure. 2015 should be even better, by far!

    Keep it rolling. :)

    Best regards.

    ReplyDelete
    Replies
    1. Hey DM,

      Thanks! I am very happy with the results so far, looking forward to an awesome 2015 for both of us.

      Thanks for dropping by :)

      Best,
      DividendVenture

      Delete
  3. Congrats on reaching your 2014 goals! Looking forward to seeing what your 2015 goals will be.

    ReplyDelete
    Replies
    1. Hi DividendsForDummies,

      Thank you! I am still working on them, there are still some dividends coming my way before the end of December, after that I will publish my goals.

      Best,
      DividendVenture

      Delete
  4. Congrats on reaching your 2014 goals. That must be an awesome feeling to have. Looking forward to seeing your 2015 goals.

    ReplyDelete
    Replies
    1. Hey Tawcan,

      Thank you! It is a great feeling indeed. I know that it is not a huge value, but it feels awesome, my 2015 goals will be more ambitious for sure. Stay tuned!

      Thanks for dropping by,
      Dividend Venture

      Delete
  5. Congrats on reaching your goal, DV. You have some great stocks in portfolio and Im sure that YOC will rise with time...so, I wouldnt worry too much about the 2.8% yield.

    Best wishes
    R2R

    ReplyDelete
    Replies
    1. Hey R2R,

      Thanks! I agree, many of these stocks have above-average dividend growth and like I said, I was focusing on the best opportunities first and only looking at yield second.

      Best Wishes,
      DividendVenture

      Delete
  6. Happy to hear you have achieved your 2014 investment goals for the most part. You beat your dividend income goal but fell short regarding your average yield. That's no big deal. Current yield really does not matter that much when investing for the long term. I own many dividend stocks in my portfolio that are under 3%. In fact, almost all my stocks pay less than 3%. What you are really after is dividend growth. Look at my GWW, VFC or AFL current yields. Now look at those annualized dividend growth rates. Never chase yield when building a long term portfolio. Your core holdings should be dividend growers with high yielders as small % of portfolio if any.

    ReplyDelete
    Replies
    1. Hey DivHut,

      Thanks! I agree with you regarding the current yield. I just set a yield on cost goal to keep me grounded, otherwise I might end up investing in many companies with a low dividend and high dividend growth which are essentially promises that might never materialize.

      Since I am still young and have time, I think it's a good idea to go for good dividend growers, but all, while maintaining a reasonable dividend income.

      Best,
      DividendVenture

      Delete
  7. Grats on your goals man and hopefully 2015 U have even bigger completed ones.. Good Day and Grind On!

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    Replies
    1. Hi Asset-Grinder,

      Thanks for dropping by! I'm hoping for a definitely more ambitious 2015, let's see!

      Best Wishes,
      Dividend Venture

      Delete
  8. DV

    Congratulations on achieving $300 in annual dividend income. Great progress for your first year investing. Looking forward to seeing what 2015 brings for you!

    ReplyDelete
    Replies
    1. Hey Mr. Captain Cash,

      Thanks for dropping by! I am pretty happy with my first year's result and am looking forward to 2015 very eagerly.

      Best Wishes for 2015!
      DividendVenture

      Delete
  9. Congrats on the great year and knocking off your goals. I wouldn't get too beat up over the average yield of the portfolio. At first I would always focus on this metric, especially when I was trying to accumulate dividend income as quickly as possible. However, as your portfolio matures, you begin to invest in a blend of high yield/low dividend growth stocks and low yield/high growth stocks. And for many of the low yield/high dividend growth stocks, they are below the 3% goal you defined. If you excluded lower yielding stocks, you would miss out on many great, dividend growth stocks, so why limit yourself?

    I think you crushed the two most important goals, dividend income and monthly yield. Keep up the great work and best of luck going forward in 2015!

    Bert, One of the Dividend Diplomats

    ReplyDelete
    Replies
    1. Hi Bert,

      Thank you for dropping by and for your very supportive words! I also think that way regarding average yield, but it is always nice to see other dividend investors supporting that view.

      From this investing year, I have started noticing that usually high yield (around 5%) companies tend to have some form of weakness or perspectives of low growth. I have been liking low yielders for their high growth perspectives and average yielders (like JNJ) for their stability. Due to this, I will not include an average yield goal for 2015.

      Thanks and happy festivities!
      DividendVenture

      Delete
  10. Congrats! reaching your goal, hopefully your portfolio will grow next year and looking forward to seeing your 2015 goals.

    ReplyDelete
    Replies
    1. Hey J,

      Thanks for dropping by! The 2015 goals are coming soon.

      Merry Christmas!
      DividendVenture

      Delete
  11. Congrats on reaching most of your goals! Good Luck in 2015

    ReplyDelete