Ultimate Sustainable Dividend Portfolio Looking Strong - March 2013 Update

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 |  Includes: ADI, COP, DOV, ETN, GAFL, HAS, INTC, ITW, JCI, MAT, MSFT, OMC, OXY, PEP, RBXLY, SJM, TROW, XLNX, XOM
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 an attempt to show how well such a portfolio can perform over the long term and also to 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. 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 Monday evening to start off:

Ticker Name Shares Mar 11 2013 Price Mar 11 2013 Values
OMC Omnicom Group Inc 26 $59.29 $1,541.54
MSFT Microsoft Corp 69 $27.87 $1,923.03
JCI Johnson Controls Inc 37 $33.97 $1,256.89
PEP PepsiCo Inc/NC 25 $76.85 $1,921.25
ETN Eaton Corp 27 $63.39 $1,711.53
DOV Dover Corp 21 $73.89 $1,551.69
ITW Illinois Tool Works Inc 24 $62.49 $1,499.76
XLNX Xilinx Inc 34 $38.33 $1,303.22
SJM JM Smucker Co/The 16 $97.39 $1,558.24
BLK BlackRock Inc 8 $247.87 $1,982.96
TROW T Rowe Price Group Inc 22 $75.19 $1,654.18
OXY Occidental Petroleum Corp 14 $82.88 $1,160.32
COP ConocoPhillips 22 $58.44 $1,285.68
XOM Exxon Mobil Corp 16 $89.16 $1,426.56
ADI Analog Devices Inc 32 $46.44 $1,486.08
HAS Hasbro Inc 29 $42.28 $1,226.12
MAT Mattel Inc 40 $41.67 $1,666.80
INTC Intel Corp 50 $21.69 $1,084.50
AFL Aflac 26 $51.05 $1,327.30
BAX Baxter International 21 $69.97 $1,469.37
Cash $633.95
USDP $30,670.97
SPX 11.12493981 $2,744.42 $30,531.55
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Dividends Received

Things are still looking good on this front as this March will bring in 44% more than the same period last time. I will be adding more money into the fund, thanks to my use of the DRIP. Take a look at the progress:

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Ultimate Sustainable Dividend Portfolio News

A few good dividend increases for the USDP, always good news right?

Ticker Name News
ADI Analog Devices Inc Dividend increase of 13.33%
ETN Eaton Corp Dividend increase of 10.53%
OXY Occidental Petroleum Corp Dividend increase of 18.52%
XLNX Xilinx Inc Dividend increase of 13.64%
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Returns

I'm thrilled to see that the USDP is back to overperforming the S&P500 total return index. It's not a total surprise as the portfolio has generally done well in solid months but it's still very nice to see.

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Trades

I didn't do much this time around, I simply reinvested the dividends into those stocks but not much else was done.