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:
Ticker Name Jan 14 2013 Price Jan 14 2013 Price Jan 14 2013 Values OMC Omnicom Group Inc 26 $52.69 $1,369.94 MSFT Microsoft Corp 50 $26.89 $1,344.50 JCI Johnson Controls Inc 36 $31.73 $1,142.28 PEP PepsiCo Inc/NC 17 $71.29 $1,211.93 ETN Eaton Corp 26 $55.33 $1,438.58 DOV Dover Corp 20 $66.60 $1,332 ITW Illinois Tool Works Inc 24 $62.88 $1,509.12 XLNX Xilinx Inc 33 $35.84 $1,182.72 SJM JM Smucker Co/The 15 $88.30 $1,324.50 BLK BlackRock Inc 7 $222.19 $1,555.33 TROW T Rowe Price Group Inc 21 $69.35 $1,456.35 OXY Occidental Petroleum Corp 13 $82.67 $1,074.71 COP ConocoPhillips 21 $58.47 $1,227.87 XOM Exxon Mobil Corp 15 $89.58 $1,343.70 ADI Analog Devices Inc 31 $42.24 $1,309.44 HAS Hasbro Inc 29 $36.56 $1,060.24 MAT Mattel Inc 39 $36.82 $1,435.98 INTC Intel Corp 49 $22 $1,077.95 AFL Aflac 25 $52.95 $1,323.75 BAX Baxter International 20 $68.03 $1,360.60 Cash $638.01 USDP $26,719.50 SPX 10.19307137 $2,584.36 $26,842.59
This year, I have no income in January but I expect February to be a very good one. The income is likely to increase much more quickly going forward as I will be adding more money into the fund and thanks to my use of the DRIP. Take a look at the progress:
Not much to report this time around. No dividends were paid so no dividend increases obviously:)
ReturnsI’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
I have started reinvesting $1000 into the portfolio every month which I will hopefully be able to keep up! This week, my biggest was increasing my position in Microsoft (MSFT) to bring it back in-line with the target weight of the portfolio