One of the first things that I had done when I embarked on the process to build a dividend portfolio was to identify what my goals were going to be during my inaugural year of dividend growth investing.
There are plenty of resources that stress how critical it is to write down your goals and there are various studies that will demonstrate that you’re more likely to achieve goals that have been written down.
Oddly enough, the goal that I am talking about today was one that I did not write down on my goals page but have shared in a few posts.
$5,000 in Project Annual Dividend Income
While I did define a goal for how much I wanted to earn in actual dividends during this first year, I had not defined a goal related to the projected annual dividend income–or forward dividend income if you prefer.
However, as mentioned, over the last month as I have been making purchases and adding to positions in my portfolio I had stated that I set a goal to achieve $5,000 in projected annual dividend income.
Here is a snapshot from my dividend spreadsheet:
Shortly after posting about my latest purchase of BlackRock stock where I was a measly $10.00 away from goal, my monthly contribution into my Vanguard account processed and I purchased 7 shares of VYM.
The additional forward dividend income from that purchase has pushed me past my goal.
It has been a whirlwind of activity since I created my dividend growth portfolio and I have been doing my best to aggressively add to positions that I find to be at attractive price points. That result of that activity is demonstrated in this view of the monthly increase to my projected annual dividend income.
As shown above, my progress towards this goal was turbo-charged in September when I established my personal REIT ETF and I haven’t slowed down in October as I have been deploying as much new capital as possible.
So where do we go from here?
When You Achieve Your Goal, Revise Your Goal
The easy thing to do would be to check off this goal as achieved, put up my feet, and relax for the remaining two months of the year.
Hopefully you know that this is not what I have planned at all.
Also, if you’ve read my defined goals you will know that I am a firm believer in setting aggressive goals as many times that can push you to achieve heights that your mind did not believe were possible.
Therefore my initial thought of resetting the bar at $5,250 in PADI has been tossed aside.
Over the next two months (plus a few remaining days in October) I am kicking the bar up a notch, and my new goal is…
$5,500 in projected annual dividend income!
Will I be able to do it?
Looking at the month by month growth in the table above, you will see that I added approximately $190 in forward dividend income during July and August–and then September jumped way up thanks to my pension rollover. October has returned closer to the July / August metrics.
I will need to average $250 in projected annual dividend income over the next two months to reach this new goal.
I’m not anticipating too many dividend raises the remainder of the year, therefore this will primarily need to come via new capital being invested and the reinvestment of dividends–two of the three legs from the dividend tripod.
While October has seen a considerable amount of new capital being deployed, it has been in lower yielding–but higher growth–positions and therefore has had a slightly reduced impact to the forward dividend income. With the market continuing to provide buying opportunities and some higher yielding positions being on my radar, it might be possible.
But isn’t it possible that I fail?
However, have I really failed if I am aggressively targeting $5,500 in PADI and only achieve $5,400? Or even $5,300?
Not in my opinion, although I can certainly appreciate those that might consider that a failure. To me, anything above and beyond my comfort level–which in this case I would say was the $5,250 that immediately came to mind–would not be a failure at all.
By taking the time to write down your goals and setting some stretch goals in the process, you will find that you can push yourself beyond your comfort zone and achieve the impossible.
We have a tendency to create goals that we know we can achieve.
It makes sense when you think about it, because nobody enjoys failing. However, the difference is in how you define failure and to me the fact that you might not quite reach those aggressive goals is not a sign of failure.
Thinking of that as a failure means you have the wrong perspective.
Shoot for the moon. Even if you miss, you’ll land among the stars.
While I enjoy the success of reaching my initial goal of $5,000 in projected annual dividend income, I am shooting for the moon and revising that goal to aim 10% higher. It will be difficult and I might not make it–but I will enjoy the process and be better for pushing myself.
Do you think I will achieve my revised goal?
What goals do you have over the last two months of the year?
20 thoughts on “Goal Achieved :: $5,000 Projected Annual Dividend Income”
Damn dude, what an amazing ride your taking us on. $5000 in forward income is just amazing. I reached my own milestone with my latest puchases but I will save that for a later post.
I have no doubt you will either reach your new goal or get very close. For me I have changed my goal from 200,- euros to 225,- since I already made my goal last month.
Thanks Mr. Robot, and congrats on reaching your milestone as well–look forward to checking out that post! It is also great to see that we both take the approach of moving the bar higher once we have reached our goal.
Here is to us both being able to share about reaching our revised goals come December!
Great job. I really do not write down numerical goals for my investments. Maybe I should, but I never have. I have some overall investment objectives, specifically creating a portfolio that achieves current income, growth of income and capital appreciation over the long run. I like what you do with a numerical dividend income goal since that’s the one we have the most control of and one reason I love dividend stocks like you. Tom
Thanks Tom, and I think my inclusion of the numerical goals is influenced by having to write SMART goals for work all these years. It adds that measurable component to the goal. However, as I hope I conveyed in the post, I think just the fact that we are all investing and working to grow our portfolios means we are already successful.
Truly amazing what you’ve been able to accomplish on the PADI front this year.
I definitely would call your efforts a success, and any further you advance the PADI is a bonus. Great work!
Thanks ED, and I have been fortunate to have received a severance to kick-start my DGI portfolio. Next year I will not have the luxury of that lump sum, but I am looking forward to the challenge and am happy with what I have been able to do outside of that initial investment this year.
Congratulations on achieving the milestone and very good approach at pushing yourself to the limit here. Great thing about dividend growth investing is how quickly the gap closes between the lines “Dividend Raises” and “Investment of Capital” (I haven’t experienced it myself yet but saw it in other bloggers’ progress) in your table of where the forward income is coming from. Nice job at getting that snowball rolling and good luck with the revised target for the remainder of the year.
Thanks BI, and you’re right about how the three legs of the dividend tripod all begin to work for you. You’re likely thinking of Engineering Dividends, as he has shared his table where the dividend raises have provided a huge chunk to his PADI.
That really is the ideal point where our money begins earning more money than we are able to contribute.
Congrats on achieving your goal Divvydad. Very impressive. I’m about 5 years from where you are right now. In any case, after reading your post, I am reminded of the famous quote by Michaelangelo, which says that “the greater danger for most of us lies not in setting our aim too high and falling short; but in setting our aim too low, and achieving our mark.” Good luck on reaching your goal of $5500. But even if you don’t make it, you’ve made incredible progress and are moving in the right direction.
Thanks DP, and you’ve been doing amazing things even with all of the changes that you’ve been managing. I have all the confidence that you’ll be here before you know it!
Thanks for sharing that quote, that is another good one that I like. I really do think a lot of people, and I’ve definitely been guilty of it myself, of setting goals that are too easy as we want that satisfaction of accomplishing our goal. It is something that I continue to work on.
Great job on achieving such an amazing goal Divvydad. I have no doubt in my mind you will hit they $5500 mark before the end of this year. You have plenty of time left to get it done. I have to agree with you in setting aggressive goals, it is by far the most critical aspect to anybody especially success.
Keep up the amazing job.
Thanks Dr. D! Appreciate the vote of confidence, and one thing that I can guarantee is that I will be doing my absolute best to reach this revised goal.
Wow, DivvyDad! Congrats on that major milestone! The next goal of $5,500 will be quite significant as your investments would generate enough dividend income all by themselves to max an IRA. The snowball is really starting to roll and work its magic. Keep it up!
Thanks Kody, and that’s a really interesting perspective that I had not thought about before. It’s pretty cool to think that my DGI portfolio can essentially self-fund an IRA. Then I need to get to work on the next $5500 to be the equivalent of an IRA contribution for my wife!
All I can say here is CONGRATS! Anytime you can beat a goal it is a HUGE and major accomplishment. Get ready to blow by your $5,500 goal as well. You’ll be shocked how quickly you start surpassing each new step/benchmark here.
Thanks Bert, it does feel great to have met my goal and now be striving for an even higher level. I am definitely excited to keep knocking off higher benchmarks as I continue this journey!
Congrats on an amazing accomplishment. Can wait to see what other goals you reach. What a milestone.
Keep up the good work and pushing yourself to the promise land.
Thanks DP, and appreciate you stopping by!
The goals that I defined for this year are all progressing quite nicely, and I am starting to think about the 2019 goals. Definitely going to keep pushing myself!
Congratulations! That’s a great milestone to achieve. Keep up the great work and I look forward to congratulating you when your overtake 10k! 😉
Thanks TDP, and I’ll try to get there as quickly as possible so don’t go too far!