After the turbulent years during the financial crisis, 2011 was a relatively smooth ride. During the year we experience several dramatic declines, which is always exciting to a value oriented long-term investor. My dividend growth portfolio's 2011 risk rating will end lower than 2010's 1.66 rating.
Looking to 2012, I don't see it much differently than 2011. Hopefully, we will have a few deep corrections in 2012. I always welcome a correction as a buying opportunity. 2011 had fewer dividend cuts, I anticipate a similar level in 2012. I also suspect 2012 will see fewer companies failing to raise their dividends (dividend freezes). 2011 will be the first year that dividend increases exceed dividend cuts since I began publicly tracking my investments.
I will no longer provide goals for Yield-On-Cost (YOC). It is nearly impossible to project and often runs counter to my primary goal of an ever-increasing stream of dividend income. With that as a backdrop here are my updated goals going into 2012:
| Description | Dividend Income Annualized | Yield on Cost |
| 2027 Goal | 110,000 | n/a |
| 2017 Goal | 30,000 | n/a |
| 2012 Goal | 20,500 | n/a |
I left the income goals for 2027 and 2017 goals unchanged. I am setting my 2012 annualized dividend income goal at $20,500. To achieve this goal, I anticipate more robust dividend growth in 2012 than what we experienced in 2012.
I am confident that I will finish 2012 with higher annualized dividend income than where 2011 ended. In addition, I feel good that my string of sequential months of higher annualized dividend income will continue through 2012.
If it were easy, everyone would do it and success wouldn't be nearly as satisfying. Here's to a prosperous 2012!
(Photo: sanja gjenero)
