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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 (USDP) 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. I recently came back from vacations and I can tell you that it’s one incredible motivation. Not that I needed it but wow!

Things continue to go very well for the USDP which I’m thrilled to see. 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 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 Sept 16 2013 Price Sept 16 2013 Values
OMC Omnicom Group Inc 28 $65.66 $1,838.48
MSFT Microsoft Corp 71 $32.80 $2,328.87
JCI Johnson Controls Inc 39 $42.73 $1,666.47
PEP PepsiCo Inc/NC 27 $81.02 $2,187.54
ETN Eaton Corp 30 $68.53 $2,055.90
DOV Dover Corp 23 $89.94 $2,068.62
ITW Illinois Tool Works Inc 26 $75.10 $1,952.60
XLNX Xilinx Inc 36 $47.50 $1,710
SJM JM Smucker Co/The 18 $107.92 $1,942.56
BLK BlackRock Inc 10 $272.66 $2,726.60
TROW T Rowe Price Group Inc 28 $72.61 $2,033.08
OXY Occidental Petroleum Corp 21 $89.68 $1,883.28
COP ConocoPhillips 24 $69.34 $1,664.16
XOM Exxon Mobil Corp 18 $88.67 $1,596.06
ADI Analog Devices Inc 43 $48.30 $2,076.90
HAS Hasbro Inc 30 $47.39 $1,421.70
MAT Mattel Inc 42 $41.93 $1,761.06
INTC Intel Corp 52 $23.39 $1,216.28
AFL Aflac 28 $61.87 $1,732.36
BAX Baxter International 23 $71.92 $1,654.16
IVZ Invesco Ltd 66 $31.61 $2,086.26
Cash $1,003.07
USDP $40,606.01
SPX 13.1676454 $3,026.95 $39,857.75

Dividends Received

September is once again a very solid month as the USDP will generate $80.20 which is nearly 50% more than a year ago. Take a look at the progress:


(Click to enlarge)

Ultimate Sustainable Dividend Portfolio News

Not much to report here, none of the reported dividends were increases. Microsoft did announce a 22% dividend increase and a massive stock buyback so that is certainly positive.

Returns

Not much to report here. The portfolio slightly outperformed the S&P500 total return index. The USDP returned 0.52% while the S&P500 did 0.44%. It’s not a big difference but over time those differences are adding up which is helping that little blue line distance the red one:)


(Click to enlarge)

Trades

No new trades

Source: Ultimate Sustainable Dividend Portfolio - September 2013 Update - Thanks Microsoft!