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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:)

Source: Ultimate Sustainable Dividend Portfolio - August 2012 Update