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Last September I did some in-depth research to find long term sustainable dividend stocks and have been doing updates on this Ultimate Sustainable dividend portfolio since then in the attempt to show how well such a portfolio can perform over the long term but also show how I would manage such a portfolio. I have said it before, I do not believe in stocks that you can hold “forever”. Thus, even in a long term portfolio such as this one, I will end up making some trades from time to time. I do discuss the search for new high quality sustainable dividend stocks that can be added in our free mailing list, if ever you would like to receive those types of updates, please join, it’s free:
Keep in mind that this portfolio was built by selecting 20 stocks out of thousands. The goal is not to pick the 20 best dividend stocks but rather to pick a diversified, high quality portfolio that will keep dividends increasing over time.
Here are the holdings as of last night to start off (please note that currently, dividends are not reinvested automatically through a DRIP strategy):
Ticker Name Shares Sept 13 Prices Sept 13 Values Jul 17 Prices Jul 17 Values
OMC Omnicom Group Inc 25.7 38.91 $999.99 $49.75 $1,278.58
MSFT Microsoft Corp 38.4 26.04 $999.94 $29.66 $1,138.94
JCI Johnson Controls Inc 34.8 28.74 $1,000.15 $27.49 $956.65
PEP PepsiCo Inc/NC 16.5 60.54 $998.91 $70.33 $1,160.45
ETN Eaton Corp 25.4 39.31 $998.47 $38.37 $974.60
DOV Dover Corp 19.5 51.2 $998.40 $51.58 $1,005.81
ITW Illinois Tool Works Inc 23 43.41 $998.43 $50.50 $1,161.50
XLNX Xilinx Inc 32.2 31.08 $1,000.78 $30.89 $994.66
SJM JM Smucker Co/The 14 71.65 $1,003.10 $75.98 $1,063.72
BLK BlackRock Inc 6.6 151.22 $998.05 $176.15 $1,162.59
TROW T Rowe Price Group Inc 19.9 50.36 $1,002.16 $62.08 $1,235.39
OXY Occidental Petroleum Corp 12.4 80.45 $997.58 $86.55 $1,073.22
COP ConocoPhillips 19.8639 64.76 $997.30 $56.28 $1,117.94
MUR Murphy Oil Corp 19.5 51.33 $1,000.94
XOM Exxon Mobil Corp 14 71.65 $1,003.10 $85.73 $1,200.22
ADI Analog Devices Inc 30 33.28 $998.40 $36.57 $1,097.10
LLTC Linear Technology Corp 34.1 29.33 $1,000.15 $29.83 $1,017.20
HAS Hasbro Inc 27.8 36.03 $1,001.63 $33.26 $924.63
MAT Mattel Inc 37.9 26.375 $999.61 $34.05 $1,290.50
INTC Intel Corp 48.2 20.76 $1,000.63 $25.38 $1,223.32
AFL 24.42 $43.61 $1,064.96
Cash 2.27 $510.93
USDP $20,000.00 $22,652.89
Dividends Received
The Month of July is a low cash flow month for the Ultimate Sustainable Dividend Portfolio. It should be back with a high payout (hopefully a record one) in August:)
Ultimate Sustainable Dividend Portfolio News
Today I decided to take a look at the entire portfolio to see how much they’ve increased their dividend payout since September. One of my big assumptions when calculating the impact of retiring on a portfolio like this is holding stocks that can increase dividends at a high pace.
Stock Dividend Increase Since Sept
MAT 34.78%
MSFT 25.00%
XOM 21.28%
OMC 20.00%
HAS 20.00%
ADI 20.00%
OXY 17.39%
XLNX 15.79%
JCI 12.50%
ETN 11.76%
AFL 10.00%
TROW 9.68%
BLK 9.09%
INTC 7.14%
PEP 4.37%
LLTC 4.17%
SJM 0.00%
ITW 0.00%
DOV 0.00%
COP 0.00%
As you can see, a few stocks have not increased their payout yet. Although I do expect most of them to do so:
SJM 8.3% dividend increase expected in the August payout
ITW 5.5% dividend increase expected in the September payout
DOV 13% dividend increase expected in the August payout
COP Did a spinoff which might affect the short term dividend increase
On average, in about 10 months, the average stock has increased its payout by over 11%!!!!
Returns
Not much change, the USDP did outperform the S&P500 slightly over the last month but still trails by a few dollars…!
Trades
No new trades for today but I do expect to have 1 or 2 changes either in August or September, which will mark the 1 year anniversary of this portfolio!!!
Why are you not reinvesting the DRIPs?
@Squeezer – I will likely change that in the near future, thanks for your comment:)