Ultimate Sustainable Dividend Portfolio – January 2012 Update

By: ispeculatornew
Date posted: 01.11.2012 (5:00 am) | Write a Comment  (8 Comments)

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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. 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.

I could be using any amount but I will be starting off with a $20,000 capital so exactly $1000 into each of the 20 stocks. As you can see in the chart below the value of the portfolio has clearly increased which you would expect since the S&P500 has done exactly that as well. To be fair to the mentality shift that I’ve discussed I will be more focused on increasing the monthly cash flows that will come from this portfolio over time than the actual value.

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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. In the first 4 months, the portfolio generated $165 of 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:


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.


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 by Hans — January 11, 2012 @ 12:08 pm

    Why are you using a four month period?

  2. Comment by IS — January 11, 2012 @ 12:20 pm

    @Hans – I will be doing it every month going forward, that will improve the usefulness;)

  3. Comment by John Hunter — January 11, 2012 @ 9:13 pm

    Marketocracy is a very nice tool to track performance. I use it to monitor 2 “paper” portfolios of mine:


    I am beating S&P 500 (140 basis points annually and 180) AFTER they deduct a 2% annual simulated management fee (as if you were a mutual fund with administrative fees…). These returns are after many years – it might not seem great but it is actually very good performance, beating almost all mutual funds.

  4. Pingback by Weekend Reading 1/14/2012 — Dividend Monk — January 14, 2012 @ 3:22 pm

    […] Ultimate Sustainable Dividend Portfolio The Intelligent Speculator keeps track of a dividend portfolio to show returns, dividends, etc. […]

  5. Comment by IS — January 15, 2012 @ 12:45 pm

    @John – Wow, thanks for linking to that, I was a regular on your investing blog, had no idea you had all of that other stuff too:)

    Nice performance, very impressive actually:) Hopefully I can do that well over time with this one!

  6. […] Ultimate Sustainable Dividend Portfolio – “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…” […]

  7. Comment by melvin turetzky — August 4, 2012 @ 6:47 pm

    I examined this list back on 6/1/12 and again on 8/3/12. There have been some severe losses on the stock values. JCI, ETN and DOV are particularly troubling. I have not been able to find any updates from the original list in the recent time frame.

  8. Comment by IS — August 4, 2012 @ 9:03 pm

    @Melvin – Things are going well actually, you can take a look at the most recent update here:


    Next update will be in 10 days or so

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