Ultimate Sustainable Dividend Portfolio – February 2012 Update

By: ispeculatornew
Date posted: 02.16.2012 (5:00 am) | Write a Comment  (1 Comment)

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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.After publishing an update in January, it is back today, with data as of Tuesday’s close.

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.

The 20 stocks were chosen out of thousands and I will be making some changes in the near future with one main objective; Keep out any stocks that could potentially limit their dividend growth in the near future. The goal remains the same: finding the ultimate stocks that can provide sustainable dividend growth.

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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. February was actually the first month with over $100 in 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:

Ultimate Sustainable Dividend Portfolio News

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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. That is why I’m (happily) surprised to see the USDP outperforming the S&P500… hopefully it continues.

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.

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1 Comment

  1. Comment by JERRY ZIMMERMAN — March 11, 2012 @ 4:53 pm

    Thank you again for your articles. I find them to be a “feeling if you will” of the way I would like to be investing. At my age, 73; I would still like to invest in dividend paying stocks. I would hope that if I do not get to enjoy my work of choosing stocks maybe my children will appreciate the monthly income I am trying to generate. I am wondering – how do you know to keep buying when the market has come up so much at this date. It would seem that we would be buying at 52 week highs. I try to learn from your articles and I check MSN Stock Scouter for 8-9-10 ratings. I also try to buy at +10 but -40 per share. I look for yield +4, P/E , BETA , and less then half of 52 week high. Please let me know if this is the right idea. Thank you for your articles. jz

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