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 |
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:
(click to enlarge)
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% |
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.
(click to enlarge)
Trades
I didn't do much this time around, I simply reinvested the dividends into those stocks but not much else was done.
