The start of a new year gives everyone a fresh start.  All around us people are making goals and resolutions to try and change their lives for the better.  Seems that the most popular types of resolutions are usually fitness or financial related.  Well I am certainly no different and I have established both types of goals for the upcoming year.  Since this is my website about dividend growth stock investing, I will stick to discussing my investing goals that I will be trying to reach this year.

Dividend Growth Stock Portfolio

Currently I have a taxable account with Scottrade where I invest in dividend growth stocks.  I discussed in my last article that I made around $377 in dividend income last year in this portfolio.  My main goal this year is to contribute $8,000 in new capital to this account so that I can make new buys.  This should allow me to make around 8 to 10 purchases in 2013.  My plan will be to purchase either completely new positions in companies that I would like to own but haven’t previously bought or to purchase more shares of companies that I already have a position in.  Sometime this month I would like to update my stock watch list to reflect all the companies I may be interested in owning a part of one day.  This way when I have new capital to invest I can easily go out and do quick valuations for these companies to determine the best to buy at that time.

I’m not going to make a dividend income goal at this time because it’s kind of hard to estimate.  Obviously if I am investing new capital throughout the year and if the companies I own increase thier dividends at some point during 2013 like I want, then my income will definately increase.  I am in the accumulation phase and while I eventually have the goal of dividend income offsetting my living expenses, I am a long way off from being able to reach that goal.  So in the meantime I think it best to focus my efforts on a goal that I can have more control over.  This is why I will focus on the amount of new capital I contribute to this account and save.  I believe as long as everything goes well this year I should have a good chance of reaching this goal.

401k Retirement Plan

Along with my dividend growth stock investment account, I also have a 401k through my employer.  In my 401k I am saving for retirement goals and for 2013 I will have the same goal of contributing $8,000 into my 401k.  This goal should be pretty easy to reach because all I have to do is set my contribution amount and forget it.  The money will automatically be taken from my paycheck before I even have the opportunity to see it.  As long as no problems emerge in 2013, I should be able to leave my contribution level high enough through the year to reach this goal.

Website Goals

I started this website last year as a way for me to share what I have learned about what I consider to be the best investing strategy out there.  Things went pretty well for my site last year as the number of visitors grew each month since the start.  I am looking to maintain that growth this year and I am aiming for double the number of visitors in 2013 compared to what I reached in 2012.  I am planning to achieve this through a consistent posting routine of at least 2 posts per week or about 8 posts per month.  I will also try to get some more guest posts this year which has proven to be quite beneficial for increasing traffic.  A couple other ideas I would like to implement for the website at some point in 2013 is a free ebook that I can give away in exchange for signing up for a newsletter which I will also look to create sometime this year.  Hopefully all of these initiatives will help me gain more readers and more comments to make a great community here at Dividend Growth Stock Investing.

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10 Responses to Looking Ahead to 2013: Goals and Plans

  1. Martin says:

    I like your goal. I agree that setting a dividend goal at the beginning phase of the investing doesn’t make much sense. I didn’t do it during 2012 either. For 2013 I already set it up (my second year) and I believe I will be able to reach it. Not right away, but during the year I should be able to do it.

    I like your reason for the website. That’s the same reason I had to start my web. Another reason of mine is to have it as a journal to articulate reasons for buying a stock or option contract.

    Hope we stay in touch

    • Dan Mac says:

      Thanks Martin, I think it best for me currently to focus on increasing capital before worrying about the actual dividend income. I could increase my dividend income by purchasing the highest yielding dividend growth stocks but that isn’t necessarily my goal. I prefer to purchase stocks of the companies I believe to be the best with a good balance between dividend yield and growth.

      Hopefully this website can be a good place for people to come and learn my ideas and to hopefully share thier ideas with me so I can learn more as well. Like you I also use this site as a sort of journal so I can look back and understand why I may have purchased a given company at a given time. Helps me remember my thought processes at different times of my investing career!

      • Martin says:

        Agree, also adding high yield stocks can be dangerous. Most of them are not sustainable and you lose money on principal and dividend income as well. I already have been on that path and lost money as soon as the company announced cutting the dividend. So I now do the same, selecting stocks with long history of increasing dividends and being in the middle of yield – growth ratio (so ideally 5% yield and 5% growth, sometimes slightly more in growth).

  2. Best of luck in 2013! If you can keep with it I’m sure you’ll blow past your goals. I’ve really noticed the traffic picking up for my site and I hope to continue that in 2013. Wish my portfolio could grow this fast. Keep it up and stay focused.

  3. Ben says:

    I like the goals you set out for yourself. I also started a blog this year to have a place to write about dividend investing and options selling. I agree that it’s nice to have a place to document your thought processes when purchasing/selling stocks. Sometimes you forget the reason you bought in the first place!

    Keep up the good work!

    • Dan Mac says:

      Thanks for reading Ben. I think every investor should keep some kind of journal whether it be online or in a notebook or whatever where they can look back and remember thier thought process for different investments. Since I also calculate an estimated return before my purchase I like to look back and see how close I was in my estimations.

  4. Ron says:

    Hey Dan I just started following you about a month ago. I started dividend investing in July. I don’t have a website but post frequent updates on twitter (@BatsBarone). I was wondering if you have any advice on things to avoid, lessons learnt the hard way. Also when did you start and what holdings you currently have (just to compare).

    • Dan Mac says:

      Hey Ron thanks for reading! I’ll be sure to follow you on Twitter. Be sure to follow me as well @DGSInvesting.

      As far as advice on things to avoid check out my article about 2 mistakes I made last year. I point out that I believe it is important to figure out your strategy and investing rules and then stick by them. You’ll be tempted along your journey to invest in the next “hot thing” and stray from your methods but I think if you are following a proven strategy that you will benefit the most long term by sticking with it.

      Also, I started investing in dividend growth stocks about halfway through 2011 and last year was my first full year sticking to the plan. Before that I tried some other investing strategies that didn’t really work out for me. Check out my last post where I mentioned the stocks I bought in 2012 and also mentioned the ones I already had in my portfolio from my start in 2011. Great stocks including MCD, WMT, KO, COP, AFL, WAG and many more.

      Hope this helps and good luck!

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