Ultimate Sustainable Dividend Portfolio – October 2012 Update – 77% Income Increase Y/Y

avatar By: IS
Date posted: 10.10.2012 (5:00 am) | Write a Comment  (3 Comments)

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In September 2011 year, 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.

The USDP is now one year old!! 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:

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Dividends Received

The Month of October is turning out to be great!! Last year, when the USDP started, October was the first full month so this one was my first opportunity to see how much it had increased in one year. In short, the income has increased 77%!!! Hopefully it will keep up!:) It will hopefully increase as the companies increase their payouts and as my positions increase thanks to my use of the DRIP.  Take a look at the progress:

 

Ultimate Sustainable Dividend Portfolio News

The past month has been fairly quiet although 2 stocks did end up raising dividends, see the details here:

[table “457” not found /]

Returns

This month, the USDP slightly underperformed with Intel Corp (INTC) being the weakest performer..hopefully it can turn things around soon but the main metric, the dividends, have continued to increase!

 

Trades

Well we did a trade last month when I added Baxter international (BAX), you can read about it here, there will not be more trading for now. However, tonight I will be investing a bit of our cash into the under weighted stocks such as Johnson Controls Inc (JCI).

More on this topic (What's this?) Read more on Chun YU Works, Dividends at Wikinvest
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3 Comments

  1. Comment by KB — October 10, 2012 @ 9:33 am
    avatar

    IS – if you take the listing of the 20 equities mentioned

    ADI AFL BAX BLK COP DOV ETN HAS INTC ITW JCI MAT MSFT OMC OXY PEP SJM TROW XLNX XOM  

    and load them into an ETF Screening site like ETF Channel and recognizing that diversification remains important and willing to only go ddown to 15/20 = 75% you can buy the same equities using a ETF product like VYM 15/20 = 17.38% paying a 3.25% distribution. Or if you want all 20 DTD at 11.13% of portfolio paying 2.95%.

    ETF # of Eq. % of ETF
    VYM        15    17.38%
    VTV        15    13.34%
    DLN        19    12.93%
    PIV        15    11.58%
    SPHQ        16    11.44%
    DTD        20    11.13%
    SPYG        17    10.98%
    IVW        17    10.92%
    MGC        16    10.45%
    VOO        20    9.69%
    IVV        20    9.58%
    SPY        20    9.54%
    IWD        15    9.53%
    VSPY        20    9.44%
    EUSA        20    9.23%
    ELR        20    8.97%
    VV        20    8.88%
    IWW        15    8.76%
    VSPR        18    8.59%
    IWB        20    8.54%
    ISI        20    8.51%
    TMW        20    8.47%
    IYY        20    8.29%
    VTI        20    8.27%
    IWV        20    7.89%
    EPS        19    7.88%
    RSU        20    7.68%
    EXT        19    6.86%
    PBP        19    6.24%
    SSO        20    6.15%
    TOK        20    5.34%
    URTH        20    4.90%
    ACWI        17    4.47%
    UPRO        20    4.26%
    RSP        20    3.93%
    PRF        18    3.73%
    VT        19    3.53%
    EWRI        20    2.06%
    UWC        19    1.10%

    http://www.etfchannel.com/finder/?symbol=ADI%09AFL%09BAX%09BLK%09COP%09DOV%09ETN%09HAS%09INTC%09ITW%09JCI%09MAT%09MSFT%09OMC%09OXY%09PEP%09SJM%09TROW%09XLNX%09XOM

  2. Comment by Hans — October 10, 2012 @ 9:43 am
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    IS, you have shown excellent returns this year..

    I am wondering, what percent of that is divys ?

    Thank you most kindly…

  3. Comment by Magnus from iLoveDividends.com — October 11, 2012 @ 8:16 am
    avatar

    Dividends Received chart looks quite nice! :)

    Good luck in the future!

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