I was only able to increase my projection annual dividend income by 15% in 2025, slightly below my target of 20%. This is mainly due to my strategic decision to increase my cash position over the last year.

While I plan to continue building my cash reserves in 2026, I also want to increase my dividend income. My goal is to increase it by 25% by the end of the year.

I plan to achieve this goal by focusing on investing the cash I don’t keep in high-quality, high-yielding dividend stocks. One of the main holdings I plan to continue adding to in 2026 is Real estate income (NYSE:O). The real estate investment trust (REIT) pay to monthly dividend which currently yields 5.7%, well above the 1.1% average for the S&P 500. Realty Income also has an excellent track record of increasing its dividend. It has increased its dividend payout 133 times since going public in 1994, growing it at a compound annual rate of 4.2% over that time period. The REIT is in a strong position to continue growing its dividend in 2026 and beyond.

Investing more money in high-quality, high-yielding stocks that regularly increase their payouts should allow me to reach my ambitious goal of increasing my dividend income.

I was right on target with my goal of growing my passive income alternative investments 25% by 2025. Selling our old house, refinancing the mortgage, and hitting the emergency fund goal freed up extra cash each month that I was able to invest in private real estate, private credit, and other income-generating investments. Additionally, a big the non-performing investment made a partial return of capital during the year, which I was able to reinvest in a new income-generating investment.

I have set myself an even more ambitious goal for 2026 to grow my passive income from alternative investments by 40%. It is an achievable goal based on my projected available funds for these investments and the rate I expect to earn. Achieving this goal would help further diversify my sources of income, increasing my financial independence.

By 2025, I wanted to be more financially secure, which I’m glad I achieved. By 2026, I aim to de-risk my portfolio and improve my financial independence by significantly increasing my passive income. Achieving these 2026 financial resolutions will allow my wife and I to be even more financially free to do more of the things we love.

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Matt Dillalo has positions in Real Estate Income. The Motley Fool has positions and recommends Realty Income. The Motley Fool has one disclosure policy.

My top 3 financial resolutions for 2026 was originally published by The Motley Fool