Last September 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.
Actually, I expect to do 1 or 2 new trades next week. I will be discussing my search for new high-quality sustainable dividend stocks that will be added in our free mailing list.
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 (please note that currently, dividends are not reinvested automatically through a DRIP strategy.. more on that later this week):
| Ticker | Name | Shares | Sept 13 Prices | Sept 13 Values | Aug 13 Prices | Aug 13 Values |
|---|---|---|---|---|---|---|
| OMC | Omnicom Group Inc | 25.7 | 38.91 | $999.99 | $51.66 | $1,327.66 |
| MSFT | Microsoft Corp | 38.4 | 26.04 | $999.94 | $30.39 | $1,166.98 |
| JCI | Johnson Controls Inc | 34.8 | 28.74 | $1,000.15 | $26.13 | $909.32 |
| PEP | PepsiCo Inc/NC | 16.5 | 60.54 | $998.91 | $71.99 | $1,187.84 |
| ETN | Eaton Corp | 25.4 | 39.31 | $998.47 | $45.94 | $1,166.88 |
| DOV | Dover Corp | 19.5 | 51.2 | $998.40 | $57.00 | $1,111.50 |
| ITW | Illinois Tool Works Inc | 23 | 43.41 | $998.43 | $57.61 | $1,325.03 |
| XLNX | Xilinx Inc | 32.2 | 31.08 | $1,000.78 | $33.65 | $1,083.53 |
| SJM | JM Smucker Co/The | 14 | 71.65 | $1,003.10 | $77.91 | $1,090.74 |
| BLK | BlackRock Inc | 6.6 | 151.22 | $998.05 | $174.95 | $1,154.67 |
| TROW | T Rowe Price Group Inc | 19.9 | 50.36 | $1,002.16 | $61.07 | $1,215.29 |
| OXY | Occidental Petroleum Corp | 12.4 | 80.45 | $997.58 | $90.05 | $1,116.62 |
| COP | ConocoPhillips | 19.8639 | 64.76 | $997.30 | $57.31 | $1,138.40 |
| MUR | Murphy Oil Corp | 19.5 | 51.33 | $1,000.94 | ||
| XOM | Exxon Mobil Corp | 14 | 71.65 | $1,003.10 | $88.14 | $1,233.96 |
| ADI | Analog Devices Inc | 30 | 33.28 | $998.40 | $40.53 | $1,215.90 |
| LLTC | Linear Technology Corp | 34.1 | 29.33 | $1,000.15 | $33.14 | $1,130.07 |
| HAS | Hasbro Inc | 27.8 | 36.03 | $1,001.63 | $37.58 | $1,044.72 |
| MAT | Mattel Inc | 37.9 | 26.375 | $999.61 | $35.59 | $1,348.86 |
| INTC | Intel Corp | 48.2 | 20.76 | $1,000.63 | $26.69 | $1,286.46 |
| AFL | AFLAC | 24.42 | $45.56 | $1,112.58 | ||
| Cash | 2.27 | $584.65 | ||||
| USDP | $20,000.00 | $23,951.65 | ||||
| SPX | 9.999600016 | 2000.08 | $20,000.00 | $2,442.46 | $24,423.63 |
Dividends Received
The Month of August is a good month in terms of cash flows for the Ultimate Sustainable Dividend Portfolio:
(click to enlarge)
Ultimate Sustainable Dividend Portfolio News
Two of the stocks that are paying dividends have increased their payouts, as you can see:
| Ticker | Name | News |
|---|---|---|
| DOV | Dover Corp | Dividend increase from $0.315 to $0.35, a 11.1% increase |
| SJM | JM Smucker Co/The | Dividend increase from $0.48 to $0.52, a 8.3% increase |
I also took a longer look at the stocks that I currently own this week. Take a look at this table:
| Ticker | Name | Industry | Price | Dividend Yield | Payout Ratio | Dvd 1 year growth | Dvd 5 year growth | Sales 5Y Gr. | EPS Growth 5 Y |
|---|---|---|---|---|---|---|---|---|---|
| OMC | Omnicom Group Inc | Advertising Agencies | 51.66 | 2.32 | 58.58 | 22.22 | 15.94 | 3.3 | 5.1 |
| MSFT | Microsoft Corp | Applications Software | 30.39 | 2.64 | 39.58 | 24.59 | 14.27 | 7.17 | N/A |
| JCI | Johnson Controls Inc | Auto/Trk Prts&Equip-Orig | 26.13 | 2.76 | 26.79 | 14.75 | 10.58 | 5.45 | 16.68 |
| PEP | PepsiCo Inc | Beverages-Non-alcoholic | 71.99 | 2.99 | 49.55 | 6.52 | 10.31 | 12.39 | 0.97 |
| ETN | Eaton Corp | Diversified Manufact Op | 45.94 | 3.32 | 34.22 | 12.98 | 11.99 | 7.3 | 135.17 |
| DOV | Dover Corp | Diversified Manufact Op | 57 | 2.46 | 25.92 | 14.55 | 11.23 | 5.53 | 12.93 |
| ITW | Illinois Tool Works Inc | Diversified Manufact Op | 57.61 | 2.64 | 33.97 | 5.88 | 11.38 | 3.75 | 37.48 |
| XLNX | Xilinx Inc | Electronic Compo-Semicon | 33.65 | 2.62 | 37.8 | 17.14 | 14.32 | 8.56 | 49.72 |
| SJM | JM Smucker Co/The | Food-Confectionery | 77.91 | 2.67 | 47.06 | 11.36 | 11.45 | 25.19 | 5.92 |
| BLK | BlackRock Inc | Invest Mgmnt/Advis Serv | 174.95 | 3.44 | 43.39 | 21.05 | 21.41 | 17.67 | 15.61 |
| TROW | T Rowe Price Group Inc | Invest Mgmnt/Advis Serv | 61.07 | 2.23 | 41.11 | 12.07 | 14.87 | 7.48 | 10.96 |
| OXY | Occidental Petroleum Corp | Oil Comp-Explor&Prodtn | 90.05 | 2.4 | 22.55 | 19.05 | 17.84 | 13.11 | 19.08 |
| COP | ConocoPhillips | Oil Comp-Integrated | 57.31 | 4.6 | 29.21 | 4.35 | 10.67 | -8.64* | 421.68 |
| XOM | Exxon Mobil Corp | Oil Comp-Integrated | 88.14 | 2.59 | 22.71 | 14.29 | 9.19 | 10.02 | 29.6 |
| ADI | Analog Devices Inc | Semicon Compo-Intg Circu | 40.53 | 2.97 | 32.69 | 20.88 | 10.1 | 5.25 | 35.39 |
| LLTC | Linear Technology Corp | Semicon Compo-Intg Circu | 33.14 | 3.03 | 57.35 | 4.26 | 7.27 | 9.65 | 20.64 |
| HAS | Hasbro Inc | Toys | 37.58 | 3.84 | 41.07 | 20 | 18.71 | 4.01 | 154.45 |
| MAT | Mattel Inc | Toys | 35.59 | 3.49 | 41.26 | 17.39 | 10.69 | 3.78 | 53.87 |
| INTC | Intel Corp | Electronic Compo-Semicon | 26.69 | 3.38 | 31.89 | 17.14 | 14.34 | 10.53 | N/A |
| AFL | Aflac Inc | Life/Health Insurance | 45.56 | 2.91 | 28.11 | 11.86 | 14.19 | 9.66 | 18.87 |
You can note that because of the spin-off, COP's negative sales growth is actually not "real." The weakest stock at this point is Linear Technology Corp, which I will probably be selling out of the portfolio next week.
Returns
Not much change, the USDP did outperform the S&P500 slightly over the last month but still trails by a few dollars.
(click to enlarge)
Trades
No new trades for today but I will be making a new trade next week so stay tuned:)
