Ultimate Sustainable Dividend Portfolio - September 2012 Update

by: Intelligent Speculator

One year ago, I did some in-depth research to find long-term, sustainable dividend stocks. I have been doing updates on this Ultimate Sustainable dividend portfolio since then in order to not only show how well such a portfolio can perform over the long term, but also show how I would manage such a portfolio. As I have said 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.

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 Sept. 11, 2012, to start off:

Ticker Name Shares Sept 11 2012 Prices Sept 11 2012 Values
(NYSE:OMC) Omnicom Group Inc 25.7 $53.53 $1,375.72
(NASDAQ:MSFT) Microsoft Corp 38.4 $30.79 $1,182.34
(NYSE:JCI) Johnson Controls Inc 35.0346 $28.14 $985.87
(NYSE:PEP) PepsiCo Inc/NC 16.625 $71.58 $1,190.02
(NYSE:ETN) Eaton Corp 25.4 $47.62 $1,209.55
(NYSE:DOV) Dover Corp 19.5 $59.01 $1,150.70
(NYSE:ITW) Illinois Tool Works Inc 23 $60.32 $1,387.36
(NASDAQ:XLNX) Xilinx Inc 32.2 $34.88 $1,123.14
(NYSE:SJM) JM Smucker Co/The 14 $86.01 $1,204.14
(NYSE:BLK) BlackRock Inc 6.6 $176.72 $1,166.35
(NASDAQ:TROW) T Rowe Price Group Inc 19.9 $63.07 $1,255.09
(NYSE:OXY) Occidental Petroleum Corp 12.4 $86.44 $1,071.86
(NYSE:COP) ConocoPhillips 19.8639 $56.37 $1,119.73
(NYSE:XOM) Exxon Mobil Corp 14 $89.62 $1,254.68
(NASDAQ:ADI) Analog Devices Inc 30 $40.23 $1,206.90
(NASDAQ:HAS) Hasbro Inc 27.8 $38.56 $1,071.97
(NASDAQ:MAT) Mattel Inc 37.9 $35.54 $1,346.97
(NASDAQ:INTC) Intel Corp 48.2 $23.34 $1,124.99
(NYSE:AFL) Aflac 24.42 $48.62 $1,187.30
(NYSE:BAX) Baxter International 19.28158002 $59.70 $1,151.11
Cash $630.65
USDP $24,396.41
SPX 9.999600016 $2,498.83 $24,987.32

Dividends Received

The month of September is a fairly good one in terms of cash flows for the Ultimate Sustainable Dividend Portfolio. Since the start of this month, all dividends are being reinvested in DRIP fashion. Also, now that the portfolio is one year old we'll be able to compare how much these cash flows have increased year over year, which should be fascinating:

Ultimate Sustainable Dividend Portfolio News

In a way, this was the most quiet of months for the Ultimate Sustainable Dividend Portfolio, and we did not see any dividend announcements for our holdings. There wasn't much going on during the summer, so I had little to announce. One change, as I mentioned earlier, was enabling the DRIP.


Not much change here either. The Ultimate Sustainable Dividend Portfolio did outperform the S&P 500 slightly over the last month, but it still trails by a few dollars.


I did a trade a few weeks ago when I added Baxter international (BAX) -- read about it here. There will not be a big trade for now. However, I plan to invest a bit of cash into the underweighted stocks, such as Johnson Controls (JCI).

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