2020 Review: Dividend and Goal Results

With 2020 behind us, it is now time for my 2020 Review: Dividend and Goal Results. When I set those goals back in 2019, I never imagined 2020 would be the year of a global pandemic that would alter life so drastically. None of us escaped without certain financial wounds such as dividend cuts, but yet, we still marched forward. In fact, many of us took the downturn as an opportunity to by great dividend stocks at a nice discount. I ended up making many stocks purchases this past year (more then any previous years). So, how did I do with the goals I set and how did the dividend numbers turn out? Let’s find out!

I set goals using a system with multiple tiers with the highest bar being the top prize. For dividend income I used bronze, silver, and gold trophies to represent different tiers. My 2020 dividend goals for forward income were: Bronze Cup – $10,500, Silver Cup – $10,750, and Gold Cup – $11,000. The results:

Silver Cup! When I began the year 2020 last January, my portfolio was set to generate $9,764 in dividend income. I closed the year 2020, with my portfolio set to generate $10,864 in dividend income. Strangely enough, that comes to an exact $1,100 increase over the year. That is an 11% year over year growth in forward dividend income. I am actually quite happy with that, considering the kind of year it was. At the same time, I realize I would have achieved the gold cup had it not been for the dividend cuts this year. Nevertheless, I will still celebrate the silver cup!

For new stock purchases, I used bronze, silver, and gold medals to represent different tiers. My 2020 goals for new stock buys were: Bronze Medal – add 5 new stocks, Silver Medal – add 7 new stocks, and Gold Medal – add 9 new stocks. The results:

Gold Medal! This year I added 12 new dividend paying stocks to my portfolio! When I began the year 2020 last January, my portfolio was comprised of 29 dividend stocks. At the close of 2020, I had 42 stocks with an additional stock (VTRS) from the PFE spinoff. The main reason I ended up making so many new purchases was due to the market downturn and lots of companies trading at nice discounts.

Now to look at my dividend increase and decrease amount totals for the year:

Total 2020 Dividend Increases: $242.99

Total 2020 Dividend Cuts: $230.51

As most of you know, it was a tough year for dividends. Dividend increases really stalled this past year between both cuts and freezes. When I compare the amount of dividend increases to the amount of dividend cuts for the year, I end up with a small net gain of $12.48. Thus, it was a pretty much a break even between cuts and raises. In 2018, dividend increases amounted to $418.82 and in 2019, dividend increases amounted to $315.67. So, this was the worse of the 3 years that I’ve kept track (along with the dividend cuts).

Nevertheless, despite a year of turmoil I still had a record year. I collected a yearly record of $10,327.89 in dividend income for the year 2020. That is the most I ever collected. Also, I just recently made my first new stock purchases of the year and have cross the $11K milestone. The next major milestone is the $12K mark which I will strive for this year (see my 2021 goals).

The value of my portfolio at the very end of 2020 was a bit over $232,000. The next milestone, that will probably happen this year, is my portfolio will cross over $250,000 in value. That is a quarter million dollars! Of course, the dividend income my portfolio generates is the most important. As of this post, my portfolio stands to generate $11,055 In dividend income over the next 12 months.

And that is a wrap. Thus concludes my 2020 Review: Dividend and Goal Results. How did you do the past year? Did you achieve your goals? Also, how were your dividend increases versus your cuts? Let me know in the comments below!