It’s almost the end of 2018 so it’s a good time to set my dividend targets for next year. The inflation in The Netherlands is 2,0% in November compared to previous year. As a result of the inflation I’m increasing the monthly dividend income target from €1.015 to €1.035,30.
- Reach €3.500 dividend income
- Invest €14.400 fresh capital in my stock portfolio
Based on the portfolio I have now my dividend income for 2019 will be €3.176. My dividend income target is based on this income and 6% average dividend growth. Also I expect that new purchases will result in €133 in extra dividend income.
I reduced my monthly deposit from €1.500 to €1.200 this year. I want to increase the balance in my savings account in 2019, because it’s below the level where I want it to be after making some investments in my house.
Last few months the stock market is very volatile so I’m curious how next year will be on the stock market.
Starting this year I made it an target for myself to have an average monthly dividend income of €1.000 in 2027. I also stated in my long term goals that I would increase the average dividend amount every year with the inflation. The inflation in The Netherlands based on the CPI-index is 1,5% so I increase my monthly dividend target to €1.015.
– An average monthly deposit of €1.500 excluding dividend reinvestments
– Receive €1.600 in dividend
– €2.200 expected annual dividend income (full year basis)
– €5.000 additonal mortgage repayment above regular monthly repayments
I end 2017 with an expected yearly dividend of €1.296,49 based on todays exchange rates. For next year I have a short term focus of adding companies generating a relatively high dividend stream to my portfolio so I will build a layer of income generating companies in my portfolio which I can use to increase my monthly share purchases.
It’s the first time I set a target to reach next year to support the long term target. I have to say it’s a bit challenging to estimate a realistic goal for next year. Just because I decided to have a year with a focus on stocks with a high yield I have to be aware to not only blindly focussing on stocks delivering a high absolute return. Within high yield shares I still have to find stocks which have a history in increasing dividends.
The shortlist with potential investments is full with REIT’s, Utilities, Financials, Oil Companies and a few Consumer Staples and Pharma companies. So keeping my portfolio properly spread over various sectors will be challenging.
Another challenge is keeping the currencies balanced. It’s way more easy to do research about American companies, because information about American listed companies is more available than information about European companies. For this reason on my short list there are only a few European companies. I’m from the Netherlands so I want to have a decent share of euro companies in my portfolio to avoid overexposure to dollar exchange rates. So I have to so more research to find euro companies with attractive yields.
I’m curious how my portfolio will develop next year and if I will be able to realize my targets while keeping my portfolio balanced.