Ultimate Sustainable Dividend Portfolio - November 2012 Update

by: Intelligent Speculator

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

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 Shares Nov 13 2012 Price Nov 13 2012 Values Monthly Return
OMC Omnicom Group Inc 25.84 $46.65 $1,205.44 -11.06%
MSFT Microsoft Corp 38.73 $27.09 $1,049.18 -7.48%
JCI Johnson Controls Inc 35.0346 $25.17 $881.82 -6.26%
PEP PepsiCo Inc/NC 16.625 $68.58 $1,140.14 -3.57%
ETN Eaton Corp 25.61 $49.47 $1,266.93 6.85%
DOV Dover Corp 19.5 $60.75 $1,184.63 7.75%
ITW Illinois Tool Works Inc 23.15 $60.83 $1,408.21 2.98%
XLNX Xilinx Inc 32.41 $33.18 $1,075.36 -0.21%
SJM JM Smucker Co/The 14 $87.05 $1,218.70 3.57%
BLK BlackRock Inc 6.6 $188.34 $1,243.04 -0.33%
TROW T Rowe Price Group Inc 19.9 $64.07 $1,274.99 0.11%
OXY Occidental Petroleum Corp 12.4 $74.86 $928.26 -10.25%
COP ConocoPhillips 19.8639 $55.35 $1,099.47 -4.24%
XOM Exxon Mobil Corp 14.09 $86.47 $1,218.36 -6.14%
ADI Analog Devices Inc 30 $40.45 $1,213.50 4.60%
HAS Hasbro Inc 27.8 $36.98 $1,028.04 -1.57%
MAT Mattel Inc 37.9 $35.50 $1,345.45 0.40%
INTC Intel Corp 48.7 $20.28 $987.64 -7.40%
AFL Aflac 24.59 $50.03 $1,230.24 4.08%
BAX Baxter International 19.28158002 $65.95 $1,271.62 9.04%
Cash $630.65 0%
USDP $23,901.67 -0.87%
SPX 9.999600016 $2,404.58 $24,044.87 0.72%
Click to enlarge

Dividends Received

The income increased significantly from October 2011 to October 2012 but that was not the case in November. What could have caused it? Since no companies have decreased their dividends in the history of the USDP (hopefully I’m not jinxing it!), I’d have to say that some companies maybe changed their dividend dates slightly. 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:

Click to enlarge

Ultimate Sustainable Dividend Portfolio News

This time around, there was very little news in fact, no dividend increases, which has not happened in a while.


Overall, the USDP portfolio did perform fairly well in the last month as it gained a bit despite markets being down in the past month. This is certainly a very good indication that the portfolio could do very well in down markets, which is certainly a goal that I have.

Click to enlarge


More details to come in the near future but I do expect a bit more trading in the coming months in the USDP:) Should be very interesting