Ultimate Sustainable Dividend Portfolio – December 2012 Update – Obama Tax Hike?

By: ispeculatornew
Date posted: 12.19.2012 (3:00 am) | Write a Comment  (2 Comments)

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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

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:

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Dividends Received

Thanks in part to a special dividend (more on that later), December income will end up being at least double what it was a year ago. 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

I had mentioned that I would not buy a stock simply based on a special dividend. That being said, I would be happy if an exiting stock took that decision which is exactly what TROW did, announcing a special $1.00 dividend in addition to its $0.34 quarterly dividend.  More to come? It’s certainly possible with a few days left and big dividend tax hikes still very much in the picture.

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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

Starting in January, I will be trading almost every month since I will be reinvesting $500 into the portfolio every month.

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2 Comments

  1. Comment by Steve — December 19, 2012 @ 12:13 pm

    Which brokerage are you using, as I am curious which allows partial shares of U.S. stocks, or is it only theoretical?

  2. Comment by IS — December 19, 2012 @ 8:16 pm

    @Steve – Thanks for the question. I do have more or less this portfolio but in order to track it in a very accurate manner, I do publish this one as theoretical yes

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