Personal Goal

In my case, I am 53 and I have several pensions and a SIPP in place. As a Dividend Income Investor, my personal goal is to generate at least £8,000 (and growing) in tax free annual dividend income in 6 years time. I anticipate starting to draw income from my dividend income growth plan in 5 to 10 years time.

I have created the Dividend Income Portfolio, and opened an ISA brokerage account online at TD Waterhouse in order to be able to invest in both London listed stocks as well as shares listed on a number of stock markets abroad.

Earlier, in January 2011, I sold all my stocks and shares (bar two) in a previous ISA and transferred £70,000+ into the TD Waterhouse account, as well as shares in two dividend paying companies previously purchased at historically undervalued levels.

In order to achieve my personal investment goal I intent to invest an equal portion of my approximately £75,000+ starting capital in up to 30 dividend paying companies,  and, initially, reinvest the dividend income.

Reporting every move I am about to make in the Dividend Income Portfolio, exclusively available to ‎subscribers only.

My investment focus is on building a well diversified portfolio of high-yielding stocks, purchased at historically undervalued levels, which increase their dividend payments over time; preferably well above the annual inflation rate.

Achieving a minimum of £8,000 in income in six years time may seem high but is feasible based on the amount of initial capital available as well as the yield on invested capital that I intend to secure.

Dividends are one of the most powerful wealth-building
tools in an investor’s arsenal because of the
phenomenon of compounding!

Take a look at this chart to see what happens to a £20,000 investment earning a 7% annual yield that’s reinvested.

I believe that my personal goal is conservative since I will have several powerful allies that would help me to reach it, including

Assuming that I have about £100,000 invested in 6 years, I would have to own assets yielding/earning 8 per cent annually in six year time. If I have £200,000 invested at the time I would only need a 4 per cent annual yield.

What next

Accept Cookies?