I’ve got a goal this year that I am calling my Drive to Five. Essentially, I’ve got a goal to be in a position to receive $500/year in dividends (qualified and/or ordinary). This $500/year is ‘forward looking’ meaning that on Dec 31, 2014, I need to own stocks which would pay a minimum of $500/year in dividends from Dec 31 2014 to Dec 31 2015.
Just like you’re not supposed to put all your eggs in one basket (stock), one of my unstated goals for FI is to have a few diverse streams of income, the anchor being the rentals. In an ideal world, when I hit FI, I would like my stock portfolio to pay out a minimum of $5,000 annually.
This year, I started with about $82/year in dividends. With my most recent purchases of KMI and SDRL, my annual total is up to about $116, a 40% gain. The $116/year isn’t a huge sum of money, but I’d bet that if I came to you once a year and asked for $116, there would be a pause before you answered!
Disclosure: Long KMI and SDRL