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In September 2011, 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.
The USDP is obviously a critical part of my now very public quest to replace my job income with passive income. you can see my most recent update here I think it’s fair to say that I’m not counting on term deposit rates to fund my retirement for now:)
The USDP continues to do very well!! Very exciting stuff and I’m thrilled with how things have gone so far. I have done a couple of trades and continue to work on optimizing it, 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:
Ticker Name Jan 14 2013 Price Jan 14 2013 Price Jan 14 2013 Values
OMC Omnicom Group Inc 26 $52.69 $1,369.94
MSFT Microsoft Corp 50 $26.89 $1,344.50
JCI Johnson Controls Inc 36 $31.73 $1,142.28
PEP PepsiCo Inc/NC 17 $71.29 $1,211.93
ETN Eaton Corp 26 $55.33 $1,438.58
DOV Dover Corp 20 $66.60 $1,332
ITW Illinois Tool Works Inc 24 $62.88 $1,509.12
XLNX Xilinx Inc 33 $35.84 $1,182.72
SJM JM Smucker Co/The 15 $88.30 $1,324.50
BLK BlackRock Inc 7 $222.19 $1,555.33
TROW T Rowe Price Group Inc 21 $69.35 $1,456.35
OXY Occidental Petroleum Corp 13 $82.67 $1,074.71
COP ConocoPhillips 21 $58.47 $1,227.87
XOM Exxon Mobil Corp 15 $89.58 $1,343.70
ADI Analog Devices Inc 31 $42.24 $1,309.44
HAS Hasbro Inc 29 $36.56 $1,060.24
MAT Mattel Inc 39 $36.82 $1,435.98
INTC Intel Corp 49 $22 $1,077.95
AFL Aflac 25 $52.95 $1,323.75
BAX Baxter International 20 $68.03 $1,360.60
Cash $638.01
USDP $26,719.50
SPX 10.19307137 $2,584.36 $26,842.59
Dividends Received
This year, I have no income in January but I expect February to be a very good one. The income is likely to increase much more quickly going forward as I will be adding more money into the fund and thanks to my use of the DRIP. Take a look at the progress:
Ultimate Sustainable Dividend Portfolio News
Not much to report this time around. No dividends were paid so no dividend increases obviously:)
Returns
I’m fairly happy with the USDP return in the past year. Why? Because both are more or less equal which in a fairly fast rising market is a good performance for a dividend/income focused portfolio.
Trades
I have started reinvesting $1000 into the portfolio every month which I will hopefully be able to keep up! This week, my biggest was increasing my position in Microsoft (MSFT) to bring it back in-line with the target weight of the portfolio
I am surprised to see no ETF positions in your portfolio, I would think that some monthly payers might be a really good way to go. I am only just beginning but I have a number of solid monthly payers in my portfolio, it does help the bottom line and I reinvest on a regular basis. There are also some really good payers with good financials out there that also pay monthly. MAIN, PSEC, FSC, PGX which is a global ETF, I also have Quarterly payers of course like BGS, RGR both of which are good solid companies with good dividend histories.
@John – Certainly something I’ve been looking into, it’ll probably be part of the upcoming high yield portfolio… more on that soon!