Goals
| Year | Goal | Result |
|---|---|---|
| 2013 | Earn $1,000 in dividend income. | Accomplished |
| 2014 | Earn $2,000 in dividend income. | Accomplished |
| 2015 | Earn $2,700 in dividend income. | Failed |
| 2016 | ? | ? |
| Year | Goal | Result |
|---|---|---|
| 2013 | Earn $1,000 in dividend income. | Accomplished |
| 2014 | Earn $2,000 in dividend income. | Accomplished |
| 2015 | Earn $2,700 in dividend income. | Failed |
| 2016 | ? | ? |
Greetings, I have 3 questions:
1. How do you determine which companies to invest in?
2. How do you determine your goals? In other words, do you see how much money you have to invest for that year, then set out to make a percentage of that in dividend income?
3. Do you ever use Closed End Funds?
Thank you.
Good questions Mike. I stick with only dividend paying companies so it eliminates a lot of other companies to choose from. The main goal as an investor for me is to receive my full investment back as soon as I can. Therefore dividends raises help greatly as my yield on costs appreciates, returning more and more of my investment back to me, while still holding the asset in full without selling and incurring other costs.
As far as which dividend stocks I personally choose is based on company fundamentals such as their P/E, Dividend Growth Rate, Payout Ratio, Dividend Yield, Consecutive Dividend Streak, Revenue Growth, Debt and Graphical Trends to name a few. There is a ton of information on a single company, I simply stick to the basics.
Yeah, basically you answered the second question yourself. I take current dividend income minus future goal then divide that by .035 (estimated dividend return) which shows how much money in total I would have to invest for that year to accomplish my goal.
As for Closed Ended Funds, I avoid them. Typically these type of mutual funds have high management fees associated with them.
Hope I answered your questions, perhaps I can build on that in the future and create a more detailed article.
Best of luck.