The Dividend Project: Creating a Dividend Portfolio.
I am mostly a growth investor but now that I am semi-retired I decided to create a portfolio that will provide a steady income stream that will steadily grow forever over time. This will be a new project strictly focused on the growth of dividend income.
Every task should have some goals so here are some specific basic goals that I set as a bench for myself to measure my progress.
- Total dividend annual growth of 3%.
- Minimum Average Yield of 3%.
- Annual dividend totaling $10,000 by 2023.
The expected raise for workers in the US for 2018 is 3% therefore my target for 3% annual dividend growth is to keep in line with those figures. Just as salary earners are expected a raise, I expect the same from my investments.
Choosing the investments and maintaining the appropriate amount of risk to get to an average yield at a specific target may be difficult but any yield should be above the core inflation which is currently at 2.2%. For now I plan on keeping things simple.
PURCHASES
FAGIX (Fidelity Capital & Income): Have owned this for many years. Now assigned into my dividend project. Yields currently at 4.04%. Have been reducing my holdings here due to the rising interest rate environment but due to its high quality corporate bonds, still holding.
FSTFX (Fidelity Limited Term Municipal Income): Have owned this one for many years as well. It is part of my risk off cash holdings currently yielding 1.53%.
T (AT&T): Purchased 373 Shares at $32.02! Have been in and out of ATT all my life and current prices look like a nice entry point. Current yield at 6.23%! This lot should increase my dividend income by around $63.13 per month. That should cover a utility bill! Sweet!
ETP (Energy Transfer Partners): This one is slightly more on the risky side. This is a MLP stock with a yield of 11.87%. Bought 217 shares at $18.42. That gives me $40.91 per month.
Fundrise: This one invests in real estate and included for diversification purpose. I love real estate and after some research I found this platform intriguing. Invested 14K which is yielding around 3.8%. Resulting in a dividend of $44.33 per month.
SALES
NONE.
Total Investments: $121,019
Total Yield: 3.9%
Monthly Dividend: $390.82
Annual Dividend: $4689.81
Looks like a long way to $10,000 annual! Would love to hear some feedback on ideas and what other ways you guys generate dividend income. I will periodically update to keep you guys updated!
I'm also a dividend investor! I will definitely follow you since we are posting about the same things. If you want some inspiration for your portfolio I have made posts about different dividend companies, good job man!
Btw, I have been looking at picking up AT&T as well. I'm a bit concerned about the total debt after the Time Warner purchase, so I'm going to wait a bit longer before purchasing but definitely not a bad entry
Just subscribed to you! Awesome to meet people with similar interests! I was worried about ATT debt as well but the prospects of new revenue from new markets and with their fee increases I came to the conclusion the debt can be manageable.
Thanks! Yea, I think you may be right here! The content that comes with the deal is major, will probably pick up the company in the near future myself
Congratulations @insidelook! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOP
To support your work, I also upvoted your post!
Do not miss the last post from @steemitboard:
SteemitBoard World Cup Contest - Russia vs Croatia
Participate in the SteemitBoard World Cup Contest!
Collect World Cup badges and win free SBD
Support the Gold Sponsors of the contest: @good-karma and @lukestokes
Congratulations @insidelook! You have completed the following achievement on Steemit and have been rewarded with new badge(s) :
Click on the badge to view your Board of Honor.
If you no longer want to receive notifications, reply to this comment with the word
STOP
Do not miss the last post from @steemitboard:
SteemitBoard World Cup Contest - Russia vs Croatia
Participate in the SteemitBoard World Cup Contest!
Collect World Cup badges and win free SBD
Support the Gold Sponsors of the contest: @good-karma and @lukestokes