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Late last year, I did a few surveys to find out what IntelligentSpeculator readers liked the most and wanted to see more of. The Ultimate Sustainable Dividend Portfolio post that we published in September was clearly a favorite. It made us possible for me to give 20 dividend stock picks that would provide long term sustainable dividend flows to build passive income. I’ve decided to build upon this by doing monthly updates of this portfolio. The picks were made on September 14th 2011 so I will be using the previous night’s prices as my reference.
I could be using any amount but I will be starting off with a $20,000 capital so exactly $1000 into each of the 20 stocks. As you can see in the chart below the value of the portfolio has clearly increased which you would expect since the S&P500 has done exactly that as well. To be fair to the mentality shift that I’ve discussed I will be more focused on increasing the monthly cash flows that will come from this portfolio over time than the actual value.
Ticker Name Shares Sept 13 Prices Sept 13 Values Oct 10 Prices Oct 10 Values
OMC Omnicom Group Inc 25.7 38.91 $999.99 45.3 $1,164.21
MSFT Microsoft Corp 38.4 26.04 $999.94 27.84 $1,069.06
JCI Johnson Controls Inc 34.8 28.74 $1,000.15 34.36 $1,195.73
PEP PepsiCo Inc/NC 16.5 60.54 $998.91 65.66 $1,083.39
ETN Eaton Corp 25.4 39.31 $998.47 47.74 $1,212.60
DOV Dover Corp 19.5 51.2 $998.40 59.18 $1,154.01
ITW Illinois Tool Works Inc 23 43.41 $998.43 48.68 $1,119.64
XLNX Xilinx Inc 32.2 31.08 $1,000.78 32.93 $1,060.35
SJM JM Smucker Co/The 14 71.65 $1,003.10 78.8 $1,103.20
BLK BlackRock Inc 6.6 151.22 $998.05 183.09 $1,208.39
TROW T Rowe Price Group Inc 19.9 50.36 $1,002.16 60.41 $1,202.16
OXY Occidental Petroleum Corp 12.4 80.45 $997.58 97.88 $1,213.71
COP ConocoPhillips 15.4 64.76 $997.30 73.28 $1,128.51
MUR Murphy Oil Corp 19.5 51.33 $1,000.94 59.2 $1,154.40
XOM Exxon Mobil Corp 14 71.65 $1,003.10 85.72 $1,200.08
ADI Analog Devices Inc 30 33.28 $998.40 36.76 $1,102.80
LLTC Linear Technology Corp 34.1 29.33 $1,000.15 30.84 $1,051.64
HAS Hasbro Inc 27.8 36.03 $1,001.63 32.91 $914.90
MAT Mattel Inc 37.9 26.375 $999.61 28.84 $1,093.04
INTC Intel Corp 48.2 20.76 $1,000.63 25.59 $1,233.44
Cash $2.27 $167.66
Total $20,000.00 $22,832.91
I do expect for dividends to be a bit more volatile from month to month but they should increase steadily over time so that will be an important metric. In the first 4 months, the portfolio generated $165 of dividends. In the next few months, I will be giving monthly updates to this amount so we’ll see how that goes. Here is the amount to start off:
Returns
I will also be comparing the returns of this portfolio to the return of the S&P500 (with dividends reinvested).. Keep in mind that I would expect the Ultimate Sustainable to do better in difficult times and worse in great times. Why? The USDP is a more stable portfolio that will fluctuate less over time.
Trades
Every month, I will discuss trades that will be done in the portfolio, they will only be done once per month and most months will actually have no new activity. These are sustainable dividend picks so there is no reason to become too active.
As I have discussed in the recent past, there are two main flaws that I will want to address in the near future for this portfolio:
-Over exposure to the oil sector (I will likely take out an oil stock in the next few months)
-Under exposure to international dividend stocks
For now, I do expect to keep the portfolio at 20 stocks so any new stock being added will replace an existing one. I strongly recommend that you join our free mailing list if you are interested in dividend stocks, that is where most of the discussions regarding new stocks to add will be done. To sign up, simply enter your name below:
As always, I would love to hear your thoughts on this. It is the first of many posts on the USDP and I do hope to make this a very interesting part of this blog.
Similar Posts:
- Ultimate Sustainable Dividend Portfolio – February 2012 Update
- Ultimate Sustainable Dividend Portfolio – May 2012 Update
- Ultimate Sustainable Dividend Portfolio – April 2012 Update
- Ultimate Sustainable Dividend Portfolio – March 2012 Update – New Trade
- How Long Would It Take To Build A $5000/Year Dividend Cash Flow?
Why are you using a four month period?
@Hans – I will be doing it every month going forward, that will improve the usefulness;)
Marketocracy is a very nice tool to track performance. I use it to monitor 2 “paper” portfolios of mine:
http://curiouscat.com/invest/investingclub.cfm
I am beating S&P 500 (140 basis points annually and 180) AFTER they deduct a 2% annual simulated management fee (as if you were a mutual fund with administrative fees…). These returns are after many years – it might not seem great but it is actually very good performance, beating almost all mutual funds.
[...] Ultimate Sustainable Dividend Portfolio The Intelligent Speculator keeps track of a dividend portfolio to show returns, dividends, etc. [...]
@John – Wow, thanks for linking to that, I was a regular on your investing blog, had no idea you had all of that other stuff too:)
Nice performance, very impressive actually:) Hopefully I can do that well over time with this one!