Ultimate Sustainable Dividend Portfolio: April 2014 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. 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.

The last month was a difficult one for the overall markets but the USDP continued to generate steady returns.

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:

P.S: Small note. In early March, one of my holdings, Dover (NYSE:DOV), spun off part of its business, Knowles (NYSE:KN), which I should have included last month, I did this time.

Ticker Name Shares Apr 14 2014 Price Apr 14 2014 Values
OMC Omnicom Group Inc 31 $68.87 $2,134.97
MSFT Microsoft Corp 73 $39.18 $2,860.14
JCI Johnson Controls Inc 41 $46.11 $1,890.51
PEP PepsiCo Inc/NC 29 $83.55 $2,422.95
ETN Eaton Corp 32 $71.03 $2,272.96
DOV Dover Corp 25 $81.56 $2,039
KN Knowles Corp 12.5 $30.02 $375.25
ITW Illinois Tool Works Inc 29 $81.64 $2,367.56
XLNX Xilinx Inc 38 $51.69 $1,964.22
SJM JM Smucker Co/The 20 $95.39 $1,907.80
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Dividends Received

Ahhh... as great as March is in terms of dividends, April is usually much slower and while I will be earnings over 50% more than the same period last year, it still amounts to only about $18. Ah well... As long as the numbers continue to increase, I certainly can't complain.

Ultimate Sustainable Dividend Portfolio News

Not much to report here as no dividend increases were signaled.


As would expect, the decline in the overall market in the past month ended up helping my returns when compared with the overall market. I am now slightly above of the S&P 500 total return index (assuming the same investments).

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One thing that I will be doing shortly is probably getting rid of the new Knowles Corp (KN) position which I got through a corporate action. Otherwise, I did end up buying about $1,400 worth of my 2 ETF positions, VWO and BND, which now represent about 10% of my portfolio.