Thursday, 1 January 2015

Goals for 2015

It's that time of year again. Time to set the new goals for the next calendar year. What do I want to achieve my this time next year? What will I consider a success?

Here I am going to set out my 4 main targets for this year. Hopefully as with 2014 I will find myself achieving the lion's share of them by this time next year.

Goal 1: Invest at least £6,000

This is more modest than in my first year. Chiefly the reason is because from an earnings perspective this year is going to be far less certain at present.

My current funding ends in October and I have no clarity on where I will move onto afterwards. Similarly, the likelihood is that I will be required to move cities in the process of finding a new job. As a result, I am looking to retain a little more of my earnings over the course of 2015.

For me, a £6,000 investment target seems both attainable and responsible at this stage. However, it is a strong likelihood that I will find myself surpassing this target over the course of the whole year especially if my earnings become more transparent through the year.

Goal 2: Maintain a portfolio yield of 4% or greater

Currently I have a portfolio yield on cost of about 4.25% which is excellent. Not only is this way above my 3.5% target for 2014 but also well ahead of my ISA's paltry 1.5%.

So, should I have a higher portfolio yield target for 2015? I think I will aim to raise this a little for next year to 4%. I will not go higher as I still hope to pull in a reasonable number of high dividend growth stocks which, usually necessarily, means taking a hit to my immediate portfolio yield for current years.  

Goal 3: Earn £800 income from dividends 

Back when I started this blog and seriously investing early this year I set a modest dividend total of £200 over the year. However, thanks to being able to invest more than I originally anticipated I am comfortable starting 2015 with this early target quadrupled to £800.

This is a modest total in reality as assuming that the dividend totals for 2014 are maintained across all my holdings for 2015 I should see over £650 in dividend income coming my way over the year even without investing any more.

Factoring in current estimates of dividend growth (or contraction in Tesco's case) would see that around £700. As a result, my new investments are only--within this target--hunting for an additional £100 to £150 dividend income.

Assuming the higher £150  would be needed, if I am to invest only £6000 over the year I should only need a yield of c.2.5% from my holdings within that year. 

Goal 4: Retain a Beta volatility below 0.85

Over the course of the year I have been looking to reduce the volatility of my portfolio. This I have slowly but surely managed to do and got it down to around 0.85

[Creative Commons image reproduced from Flickr user Jim Kelly]

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