Dividend Progress – 2015 Year End

December 2015 Dividend Activity 

  • In December, I had zero activity.  No transactions or dividend changes.
  • Dividend income for the month increased by 49.4% compared to December of last year.  Most of the increase came from additional purchases during the year.  Total income for the month also hit a milestone that I have waited several years for.  Kind of a nice feeling.

Annual Progress – 2015

  • Overall, forward dividend income increased by 19.28% compared to 2014
    • Stock sales reduced income by 5.71%
    • Dividend increases added 4.88%
    • Stock purchases added 20.12%
  • Dividends received in 2015 were 41.24% higher compared to 2014 (again, mostly from heavy purchasing in 2014-2015).

Goals and Forecasts

Early in 2014, we met with our financial adviser to discuss possibilities for my retirement.  I had created a ten year income projection spreadsheet which included estimates on dividend income.  For 2014, I fell short of my projection by a little over 2%.

For 2015, I was projecting a 26% increase in dividend income over the 2014 projection.  The good news is that we came in at about 38%.  That helps in that it should make it a little less difficult to reach my projection/goal for 2016.

Investing Plans For 2016

Along with working toward my income goals for 2016, there are a few other things I want to accomplish.

  • Finalization of my investment business plan (though always subject to refinement)
    • The plan will include a legacy section.  I am concerned about the predicament my wife would find herself in if I am suddenly unable to manage our portfolio.  Stocks are clearly not her “thing”.
    • The legacy information will offer some guidance as to what to do with the portfolio, as well as what not to do.  This could get tricky and due diligence is in order.
  • Giving serious thought to my true risk tolerance.  Since becoming involved with dividend stocks, I have never experienced a true bear market.
  • Determine what allocation levels should be for stocks and bonds.  This will obviously affect my business plan, so I need to get a handle on this.
  • I’m certain that my business plan will address the issue of holding only high quality in our portfolio.  I plan to work toward that goal.  I have a few companies that are questionable and they probably don’t need to be among our holdings.

How about you?  Any particular plans or goals for the new year?

Thanks for reading.  I wish you happy investing and the happiest of new years.

2 responses

  1. Great year over year increase from Dec. to Dec. Regarding your risk tolerance to a bear market, I think that if you are invested in truly solid companies that offer safe dividends you should be fine even if your entire portfolio shows red. I held all of my stocks during 2008/9 and sold not one share. I kept buying every month as I always have and continued to collect dividends. This is why I do not like very volatile stocks, as you find in energy or tech. I’d rather stick with boring steady payers that help me sleep at night. Thanks for sharing. Look forward to your 2016 progress.

    1. Hi DH,
      Thanks…. I am pleased with the YOY increases for December. How could I not be? 🙂

      I agree with you in general on buying solid companies, though I have a few that are less than “stalwart” in status. I aim to rectify that during the coming year. I just have to find replacements, which isn’t easy as of late. I am a fair amount older than you, and already retired. That being the case, I think I need to lean even more heavily toward the stalwart side of the equation.

      In addition, I have to consider the fact that there won’t likely be any (or very little) new money being added to our portfolios outside of dividend income. I won’t be in the same position as you, as to my ability to just keep buying through market downturns. I may be able to reinvest some of the dividends, though at my age it won’t have the impact that it will have for you. In that light, I feel the need to be a little more cautious than I was in my forties. As to the energy stocks you mention, I messed up there. I got WAY too heavy into big oil. I’m now trying to bring that percentage down by way of buying into other sectors. It will take a little time and may or may not be a good idea. Time will tell. I’m a little leery of tech as well. My only holding there is a small amount of MSFT.

      I’ve got some work to do before I can get completely comfortable with our stocks. It’s great to have these conversations. It makes me think. Thanks for stopping by. Keep up the good work on your end.

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