Saturday, December 15, 2012

2013 Investing Goals

My goals were originally defined in this December 1, 2007 Investing Goals post and last updated in my 2012 Investing Goals. Like last year, I will exceed my 2012 goal of $20,500 in annualized dividend income. Looking at my long-rang goals, I am still on track to reach my 2017 goal of $30,000 and based on my latest model, I could reach it as early as 2014. The 2027 goal of $110,000 is not as clear. My model now indicates I could surpass it in 2024.

2012 was a relatively smooth year. During the year we experienced some declines, which is always exciting to a value oriented long-term investor. My dividend growth portfolio's 2012 risk rating will end slightly higher than 2011's 1.56 rating as a result of higher valuations on many stocks I hold.

From an investing standpoint, 2013 will be much different than the previous years. As 2012 winds down, I have just about completed my investment transition to Dividend Growth Stocks. Much of my historical investments were reallocation of existing funds. With this no longer available in 2013, the dollar amount of new investments in my Dividend Growth Portfolio will be smaller.

Hopefully, we will have a few deep corrections in 2013. I always welcome a correction as a buying opportunity. 2012 saw very few dividend cuts, I anticipate a similar trend in 2013. I also suspect 2013 will see fewer companies failing to raise their dividends (dividend freezes). The trend in 2012 continued where my dividend increases exceed dividend cuts.

Description Dividend
on Cost
2027 Goal 110,000 n/a
2017 Goal 30,000 n/a
2013 Goal 25,000 n/a

I left the income goals for 2027 and 2017 goals unchanged. I am setting my 2013 annualized dividend income goal at $25,000. To achieve this goal, I anticipate moderate dividend growth in 2013, somewhat less than the near 6% I experienced in 2012.

I am confident that I will finish 2013 with higher annualized dividend income than where 2012 ended. In addition, I feel good that my string of sequential months of higher annualized dividend income will continue through 2013.

If it were easy, everyone would do it and success wouldn't be nearly as satisfying. Here's to a prosperous 2013!

(Photo: sanja gjenero)