Ultimate Sustainable Dividend Portfolio - May 2013 Update - Crushing the S&P 500

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 USDP continues to do very well! Very exciting stuff and I’m thrilled with how things have gone so far. 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 May 14 2013 Price May 14 2013 Values
OMC Omnicom Group Inc 27 $63.36 $1,710.72
MSFT Microsoft Corp 70 $33.53 $2,347.10
JCI Johnson Controls Inc 37 $37.22 $1,377.14
PEP PepsiCo Inc/NC 25 $83.50 $2,087.50
ETN Eaton Corp 29 $65.09 $1,887.61
DOV Dover Corp 21 $75.43 $1,584.03
ITW Illinois Tool Works Inc 25 $69.38 $1,734.50
XLNX Xilinx Inc 35 $38.35 $1,342.25
SJM JM Smucker Co/The 16 $104.53 $1,672.48
BLK BlackRock Inc 8 $284.45 $2,275.60
TROW T Rowe Price Group Inc 26 $76.65 $1,992.90
OXY Occidental Petroleum Corp 19 $91.03 $1,729.57
COP ConocoPhillips 22 $63.06 $1,387.32
XOM Exxon Mobil Corp 17 $91.11 $1,548.87
ADI Analog Devices Inc 41 $46.34 $1,899.94
HAS Hasbro Inc 30 $47.51 $1,425.30
MAT Mattel Inc 40 $46.58 $1,863.20
INTC Intel Corp 51 $23.84 $1,215.84
AFL Aflac 26 $54.56 $1,418.56
BAX Baxter International 21 $70.49 $1,480.29
IVZ Invesco Ltd 34 $34.48 $1,172.32
Cash $75.80
USDP $35,228.84
SPX 11.82827993 2920.370817 $34,542.96

Dividends Received

May 2013 is the best month to this day for the USDP in terms of income with nearly $125 of dividends. It’s not enough to live off just yet but it’s a start right?:) Take a look at the progress:

Ultimate Sustainable Dividend Portfolio News

Very nice to see 3 of my 20 existing holdings increase their dividend payouts! See the details over here:

Ticker Name News
PEP PepsiCo Inc/NC Dividend increase from $0.5675 to $0.5375, a 5.6% increase
XOM Exxon Mobil Corp Dividend increase from $0.57 to $0.63, a 10.5% increase
BAX Baxter International Dividend increase from $0.45 to $0.49, a 8.9% increase


It’s far if you tell me that I’m not exactly “crushing” the S&P500. But I did outperform decently and it’s better to celebrate when that does happen as the next month could be very different:)

(Click to enlarge)


Yesterday, I reinvested nearly all of the money reinvesting the dividends but also adding a 21st stock to the mix, as I had hinted last week, I went with Invesco (NYSE:IVZ) which is a nice addition to my current portfolio. I have said I preferred staying away from banks but a company such as Invesco is quite different. It manages money and earns a cut..it’s a fairly stable business.