Ultimate Sustainable Dividend Portfolio – February 2014 Update – Tough Month

By: ispeculatornew
Date posted: 02.19.2014 (3:00 am) | Write a Comment  (2 Comments)

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passiveincomeIn 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. I would personally say that things have been going very well and will certainly continue to evolve. I do have a few more things planned which I will discuss in the near future.

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.

Things continue to go very well for the USDP which I’m thrilled to see. The past few weeks were not the most successful but overall the performance remains very solid. I will be publishing more analysis of the stocks from the portfolio in the free newsletter. 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 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:

TickerNameSharesFeb 18 2014 PriceFeb 18 2014 Values
OMCOmnicom Group Inc30$76.16$2,284.80
MSFTMicrosoft Corp73$37.42$2,731.66
JCIJohnson Controls Inc40$49.27$1,970.80
PEPPepsiCo Inc/NC28$78.18$2,189.04
ETNEaton Corp31$72.47$2,246.57
DOVDover Corp24$87.10$2,090.40
ITWIllinois Tool Works Inc28$79.92$2,237.76
XLNXXilinx Inc38$50.32$1,911.97
SJMJM Smucker Co/The20$95.31$1,906.20
BLKBlackRock Inc11$305.96$3,365.56
TROWT Rowe Price Group Inc29$80.66$2,339.14
OXYOccidental Petroleum Corp22$96.28$2,118.16
COPConocoPhillips26$65.37$1,699.62
XOMExxon Mobil Corp20$94.07$1,881.40
ADIAnalog Devices Inc44$51.23$2,254.12
HASHasbro Inc31$52.96$1,641.76
MATMattel Inc44$35.47$1,560.68
INTCIntel Corp54$24.76$1,337.04
AFLAflac30$63.03$1,890.90
BAXBaxter International24$69.29$1,662.96
IVZInvesco Ltd68$34.14$2,321.52
VWOVanguard FTSE Emerging Markets43$38.77$1,667.11
BNDVanguard Total Bond Market24$81.17$1,948.08
Cash$801.41
USDP$48,058.66
SPX14.72205005$3,310.89$48,743.06

Dividends Received

This month, the USDP will end up generating $112.53 which is  about 2.50% more than last year. It’s small progress but every month that provides more income than the previous year is good news.  Take a look at the progress:

income

Ultimate Sustainable Dividend Portfolio News

Xilinx (XLNX) Inc Dividend increase from $0.25 to $0.29, a 16% increase
BlackRock Inc (BLK) Dividend increase from $1.68 to $1.93, a 14.9% increase
Occidental Petroleum Corp (OXY) Dividend increase from $0.64 to $0.72, a 12.5% increase
Hasbro Inc (HAS) Dividend increase from $0.40 to $0.43, a 7.5% increase
Mattel Inc (MAT) Dividend increase from $0.36 to $0.38, a 5.6% increase

Returns

Wow, it was not a good month… that much seems obvious. There were a few bad performances but by far the biggest miss was Mattel (MAT). Who knew Barbie dolls were going out of style?:( Joking aside, the company reported some disappointing numbers….I’ll be looking into if I can remain invested in this stock in the next few days and might be trading out of it next month.

MAT

 

This is very disappointing because even though I pay a lot of attention to the income, generating a solid total return is as critical so I will need to review what happened. Bad months will happen and that’s fine but I do still need to review the performance and adjust if required.

usdp1

Trades

This time around, I am not entering any new trades apart from re-investing the dividends that were received. I do expect to trade some next month as I will review the entire USDP portfolio and I’m getting a feeling that there will be at least 1 or 2 changes.
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2 Comments

  1. Comment by James — February 23, 2014 @ 7:34 pm

    Hey – great posting. I like how transparent your portfolio is, especially your chart on the monthly dividends.

    I think what this posting really indicates is how hard it is to build up passive income. It takes a while and you have to manage it.

  2. Comment by IS — March 2, 2014 @ 7:58 pm

    @James – It’s really about building a system, once that’s done, it doesn’t feel like that much time is necessary!

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