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

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:

Ticker	Name	Shares	Oct 9 2012 Price	Oct 9 2012 Values
OMC	Omnicom Group Inc	25.84	$52.45	$1,355.31
MSFT	Microsoft Corp	38.4	$29.28	$1,124.35
JCI	Johnson Controls Inc	35.0346	$26.85	$940.50
PEP	PepsiCo Inc/NC	16.625	$71.12	$1,182.37
ETN	Eaton Corp	25.61	$46.30	$1,185.74
DOV	Dover Corp	19.5	$56.38	$1,099.41
ITW	Illinois Tool Works Inc	23.15	$59.07	$1,367.47
XLNX	Xilinx Inc	32.2	$33.25	$1,070.65
SJM	JM Smucker Co/The	14	$84.05	$1,176.70
BLK	BlackRock Inc	6.6	$188.96	$1,247.14
TROW	T Rowe Price Group Inc	19.9	$64	$1,273.60
OXY	Occidental Petroleum Corp	12.4	$83.41	$1,034.28
COP	ConocoPhillips	19.8639	$57.80	$1,148.13
XOM	Exxon Mobil Corp	14	$92.13	$1,289.82
ADI	Analog Devices Inc	30	$38.67	$1,160.10
HAS	Hasbro Inc	27.8	$37.57	$1,044.45
MAT	Mattel Inc	37.9	$35.36	$1,340.14
INTC	Intel Corp	48.2	$21.90	$1,055.58
AFL	Aflac	24.42	$48.07	$1,173.87
BAX	Baxter International	19.28158002	$60.48	$1,166.15
Cash				$630.65
USDP				$24,066.42

SPX		9.999600016	$2,516.79	$25,166.87

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:

Ticker	Name	News
MSFT	Microsoft Corp	Dividend increase from $0.315 to $0.35, a 11.1% increase
BAX	Baxter International	Dividend increase from $0.48 to $0.52, a 8.3% increase

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).

3 Comments »

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

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
Comment by Hans — October 10, 2012 @ 9:43 am

IS, you have shown excellent returns this year..

I am wondering, what percent of that is divys ?

Thank you most kindly…
Comment by Magnus from iLoveDividends.com — October 11, 2012 @ 8:16 am

Dividends Received chart looks quite nice!

Good luck in the future!