Ultimate Sustainable Dividend Portfolio - September 2014 Update - Moving Ahead

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Includes: ADI, AFL, BAX, BLK, BND, CVX, DOV, ETN, HAS, ITW, IVZ, JCI, MAT, MSFT, OMC, OXY, PEP, SJM, TROW, TXN, VWO, XLNX, XOM
by: Intelligent Speculator

As many of you know the Ultimate Sustainable dividend portfolio was built over a year ago as an attempt to slowly become financially free. By that I mean having enough passive income to not “need” to work any longer. I track my progress every month and I’m looking at many different ways to get that done, which includes real estate, my own business, etc. That being said, the core of my strategy relies on income generated from my portfolios.

The USDP, along with my ETF portfolio, generate the bulk of my passive income, and I decided to track this with a monthly post to keep myself accountable, and also because I’ve heard from many of you that this would be helpful.

Here are the portfolio holdings as of last night:

Ticker
Name
Shares
Sept 17 2014 Prices
Sept 17 2014 Values
OMC Omnicom Group Inc 32 $70.33 $2,250.56
MSFT Microsoft Corp 74 $46.52 $3,489
JCI Johnson Controls Inc 42 $46.37 $1,993.91
PEP PepsiCo Inc/NC 30 $92.85 $2,878.35
ETN Eaton Corp 33 $66.36 $2,256.24
DOV Dover Corp 26 $84.72 $2,287.44
ITW Illinois Tool Works Inc 30 $88.63 $2,658.90
XLNX Xilinx Inc 39 $43.92 $1,756.80
SJM JM Smucker Co/The 21 $99.71 $2,193.62
BLK BlackRock Inc 13 $329.74 $4,616.36
TROW T Rowe Price Group Inc 31 $79.30 $2,537.60
OXY Occidental Petroleum Corp 24 $98.17 $2,454.25
XOM Exxon Mobil Corp 21 $97.08 $2,135.76
ADI Analog Devices Inc 46 $49.63 $2,332.61
HAS Hasbro Inc 31 $53.77 $1,720.64
MAT Mattel Inc 45 $34.16 $1,571.36
AFL Aflac 31 $58.33 $1,866.56
BAX Baxter International 26 $72.65 $1,961.55
IVZ Invesco Ltd 69 $40.85 $2,859.50
CVX Chevron 20 $124.72 $2,619.12
TXN Texas Instruments Inc 32 $48.37 $1,596.21
VWO Vanguard FTSE Emerging Markets 81 $44.20 $2,696.20
BND Vanguard Total Bond Market 46 $81.46 $2,932.56
Cash $2,550.94
USDP $58,216.04
SPX 16.17845817 $3,643.33 $60,943.46


Dividends Received

Things are going absolutely great from this perspective. You will see in the below chart a clear trend in monthly income when you compare to the same period the previous year.

Ultimate Sustainable Dividend Portfolio News

Not much to report here. I can’t say I’d blame these companies for not announcing dividend increases in the middle of the summer!

Returns

Overall returns continue to be decent, but I did not yet catch up on that S&P500 uptick. The main stocks that have let me down from that perspective so far this year are:
Mattell (NASDAQ:MAT): -26% so far this year (total return)
ETN Corp (NYSE:ETN): -10,55%
Of course, it’s one more example of the importance of diversification in a portfolio like this one.

Trades

Not much going on from that perspective, but you can expect a change or two before year-end.