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Minimum Long Term 16%/year Returns Targeted For A Large DGI Portfolio With Current Dividend Yield Near 4% And Dividend Growth Over 12%

I have created a DGI portfolio that yields nearly 4% and has overall dividend growth rate of 12.4% 5 year average) or 14.4% (1 year average). In the last year it has returned over 33%. The key over the long term is the dividend growth rate. If this can be maintained then this portfolio should gain an average of 16% per year, NOT including stock price appreciation!

This portfolio will not be static in that if any company cuts its dividend, or its dividend growth falls below 12% for more than 3 years, it is replaced.

Here is a chart of the last year of my hypothetical DGI portfolio (IRA1) versus the DOW Jones US Select dividend index:

Here is a list of the components:

Symbol Name Last Price Price Change Market Value Weight
AAPL APPLE INC COM 117.91 1.3 623.98 0.75
ABBV ABBVIE INC COM 63.79 0.02 834.41 1
ABT ABBOTT LABS 40.78 1.08 827.59 0.99
AFL AFLAC INC 70.19 0.24 648.27 0.77
AFSI AMTRUST FINANCIAL SERVICES INC COM 27.5 0.17 613.34 0.74
AGR AVANGRID INC COM 38.73 0.48 661.4 0.8
AMGN AMGEN INC 156.78 3.8 731.75 0.88
AMZA INFRACAP ACTIVE MLP ETF 11.01 0.01 481.21 0.58
APD AIR PRODS & CHEMS INC 144.36 1.14 453.68 0.55
APO APOLLO GLOBAL MGMT LLC CL A SHS 21.42 0.92 422.49 0.51
ARCC ARES CAP CORP COM 16.91 0.21 744.5 0.9
AVY AVERY DENNISON CORP 72.4 0.97 613.79 0.74
BA BOEING CO 159.1 0.39 559.79 0.67
BG BUNGE LIMITED 70.14 -0.96 631.56 0.76
BGS B & G FOODS INC NEW CL A 43.5 -0.5 738.8 0.89
BIP BROOKFIELD INFRAST PARTNERS LP INT UNIT 34.61 0.32 820.25 0.99
BLK BLACKROCK INC CL A 384.3 1.76 384.74 0.46
BPL BUCKEYE PARTNERS L P UNIT LTD PARTN 67.99 0.46 770.77 0.93
BX BLACKSTONE GROUP L P UNIT LTD 30.51 0.09 938.59 1.13
CAH CARDINAL HEALTH INC 75.33 0.83 556.05 0.67
CAT CATERPILLAR INC DEL 93.04 0.04 577.34 0.69
CCP CARE CAP PPTYS INC COM 25.35 -0.02 662.8 0.8
CE CELANESE CORP DEL SER A 81.03 0.28 646.9 0.78
CF CF INDS HLDGS INC 33.47 0.42 612.17 0.74
CHI CALAMOS CONV OPP AND INC FD SH BEN INT 10.47 -0.05 716.89 0.86
CINF CINCINNATI FINL CORP 75.78 0.02 620.87 0.75
CME CME GROUP INC CL A 117.19 1.27 567.34 0.68
CMI CUMMINS INC COM 138.72 0.97 497.52 0.6
CMRE COSTAMARE INC SHS 5.99 -0.13 192.44 0.23
CNNX CONE MIDSTREAM PARTNERS LP COM UNIT REPS 23.69 0.64 777.14 0.93
CONE CYRUSONE INC COM 48 -0.36 545 0.66
COR CORESITE RLTY CORP COM 82.43 -1.14 463.56 0.56
CSCO CISCO SYS INC 30.23 0.06 849.23 1.02
CSX CSX CORP 37.52 0.53 553.67 0.67
CTRE CARETRUST REIT INC COM 15.56 -0.01 647.01 0.78
DE DEERE & CO 106.49 1.14 723.95 0.87
DEA EASTERLY GOVT PPTYS INC COM 20.18 -0.31 549.22 0.66
DFT DUPONT FABROS TECHNOLOGY INC COM 47.25 -0.61 409.46 0.49
DIS DISNEY WALT CO DISNEY 108.98 1.6 512.69 0.62
DOV DOVER CORP 77.72 1.19 720.7 0.87
DOW DOW CHEM CO 57.44 -0.36 877.12 1.05
DRI DARDEN RESTAURANTS INC 71.55 -0.78 679.52 0.82
EMR EMERSON ELEC CO 56.4 0.26 753.38 0.91
EPD ENTERPRISE PRODS PARTNERS L P 27.65 0.24 845.83 1.02
ETN EATON CORP PLC SHARES 68.01 0.66 813.73 0.98
EV EATON VANCE CORP NON VTG 43.69 0.45 607.15 0.73
EVA ENVIVA PARTNERS LP COM UNIT 27.7 0.5 514.23 0.62
FAST FASTENAL CO 46.51 -0.11 598.84 0.72
FIS FIDELITY NATL INFORMATION SVCS COM 78.89 0.84 599.69 0.72
FLIC FIRST LONG IS CORP 28.1 -0.1 20.33 0.02
GE GENERAL ELEC CO 31.61 0.09 789 0.95
GLOG GASLOG LTD SHS 17 -0.05 558.31 0.67
GLW CORNING INC 24.52 0.21 597.47 0.71
GNK GENCO SHIPPING & TRADING LTD SHS NEW 7.68 -0.65 98.34 0.12
HBAN HUNTINGTON BANCSHARES INC 13.29 0.03 563.47 0.68
HON HONEYWELL INTL INC 118.53 1.77 823.96 0.99
HP HELMERICH & PAYNE INC 81.07 2.27 756.97 0.91
HQH TEKLA HEALTHCARE INVS SH BEN INT SH BEN 22.81 0.21 1360.69 1.64
HRS HARRIS CORP DEL 104.55 1.14 619.04 0.74
HUBB HUBBELL INC NEW 118.44 0.26 527.73 0.63
IBM INTERNATIONAL BUSINESS MACHS 169.53 0.83 814.87 0.98
INTC INTEL CORP 36.48 0.13 893.24 1.07
IP INTL PAPER CO 53.72 0.11 842.78 1.01
ITW ILLINOIS TOOL WKS INC 122.88 1.27 455.9 0.55
IVZ INVESCO LTD 31.53 0.01 761.61 0.92
JCI JOHNSON CTLS INTL PLC SHS 42.79 0.85 621.41 0.75
JNJ JOHNSON & JOHNSON 116.3 -0.56 705.29 0.85
KALU KAISER ALUMINUM CORP PAR $0.01 79.14 -0.77 392.58 0.47
KHC KRAFT HEINZ CO COM 86.31 -0.22 456.35 0.55
LAZ LAZARD LTD SHS A 41 -0.59 817.14 0.98
LMT LOCKHEED MARTIN CORP 257.85 1.87 128.98 0.16
LYB LYONDELLBASELL INDUSTRIES N V SHS - A - 88.17 -0.51 737.01 0.89
MAIN MAIN STREET CAPITAL CORP COM 36.83 -0.1 468.41 0.56
MCD MCDONALDS CORP 120.76 1.06 595.72 0.72
MDP MEREDITH CORP 58.25 -0.25 378.63 0.46
MDT MEDTRONIC PLC SHS 72.87 2.04 734.72 0.88
MET METLIFE INC 54.18 0.35 605.83 0.73
MGA MAGNA INTL INC CL A 45.06 -0.11 725.31 0.87
MMM 3M COMPANY 178.23 0.52 236.27 0.28
MMP MAGELLAN MIDSTREAM PRTNRS LP COM UNIT RP 76.81 -0.06 805.61 0.97
MPLX MPLX LP COM UNIT REP LTD 35.86 -0.01 847.17 1.02
MSFT MICROSOFT CORP 62.84 0.54 702.59 0.84
MXIM MAXIM INTEGRATED PRODS INC 39.74 1.3 769.14 0.92
NEWT NEWTEK BUSINESS SVCS INC 16.68 0.07 865.66 1.04
NM NAVIOS MARITIME HOLDINGS INC COM 1.62 -0.02 99.07 0.12
NMFC NEW MTN FIN CORP COM 14.55 0.15 873 1.05
NNA NAVIOS MARITIME ACQUIS CORP SHS 2.02 0.14 112.23 0.13
NSC NORFOLK SOUTHERN CORP 111.66 1.37 574.81 0.69
NUE NUCOR CORP 60.29 -0.61 791.81 0.94
NVS NOVARTIS A G ADR 73.49 -0.58 847.66 1.02
NWBI NORTHWEST BANCSHARES INC MD COM 18.06 -0.12 696.83 0.84
OHI OMEGA HEALTHCARE INVS INC 32.67 0.09 889.46 1.07
OKE ONEOK INC NEW 57.9 -0.93 565.94 0.68
PAA PLAINS ALL AMERN PIPELINE L P UNIT LTD P 32.55 -0.5 718.59 0.86
PAYX PAYCHEX INC 61.27 0.42 808.58 0.97
PETS PETMED EXPRESS INC 22.92 -0.07 779.17 0.94
PFE PFIZER INC 33.48 -0.13 814.65 0.98
PFG PRINCIPAL FINANCIAL GROUP INC 58.86 0.35 635.24 0.76
PG PROCTER & GAMBLE CO 85.03 -0.03 741.68 0.89
PKG PACKAGING CORP AMER 87.2 1.87 581.57 0.7
PNR PENTAIR INC 58.01 -0.06 662.83 0.8
PRU PRUDENTIAL FINL INC 105.15 0.6 636.9 0.77
PSEC PROSPECT CAPITAL CORPORATION 8.58 -0.02 718.85 0.86
QCOM QUALCOMM INC 65.53 -0.02 799.2 0.96
RDS.A ROYAL DUTCH SHELL PLC SPONS ADR A 55.79 -0.48 799.84 0.96
RIO RIO TINTO PLC ADR 38.39 -0.93 782.04 0.94
ROK ROCKWELL AUTOMATION INC 138.51 0.77 402.44 0.48
RTN RAYTHEON CO 148.22 0.06 410.28 0.49
RY ROYAL BK CDA MONTREAL QUE 70.07 -0.01 603.5 0.73
SEP SPECTRA ENERGY PARTNERS LP COM 47.07 0.08 749.17 0.9
SFL SHIP FINANCE INTERNATIONAL LTD SHS 15.05 0.05 99.51 0.12
SIX SIX FLAGS ENTMT CORP NEW COM 60.62 0.02 742.86 0.89
SMLP SUMMIT MIDSTREAM PARTNERS LP COM UNIT LT 26 0.4 407.84 0.49
STAG STAG INDL INC COM 24.41 0.19 738.69 0.89
T AT&T INC COM 41.32 -1.33 815.57 0.98
TD TORONTO DOMINION BK ONT NEW 50.87 -0.35 764.01 0.92
TGT TARGET CORP 71.44 -1.12 781.11 0.94
TROW PRICE T ROWE GROUP INC COM 75.62 -0.75 801.19 0.96
TSM TAIWAN SEMICONDUCTOR MFG LTD ADR 29.63 -0.17 796.99 0.96
TXN TEXAS INSTRS INC 74.15 1.23 504 0.61
UNP UNION PAC CORP 103.19 1.06 758.65 0.91
UPS UNITED PARCEL SERVICE INC CL B 115.4 0.23 803.15 0.97
UTX UNITED TECHNOLOGIES CORP 112.55 1.2 783.37 0.94
VZ VERIZON COMMUNICATIONS INC. 53.26 -1.38 652.3 0.78
WBA WALGREENS BOOTS ALLIANCE INC NEW 83.1 0.07 596.12 0.72
WHG WESTWOOD HLDGS GROUP INC 60.49 -0.62 498.57 0.6
WPZ WILLIAMS PARTNERS L P NEW UNIT LTD PAR 39.3 0.33 832.28 1
WRK WESTROCK CO COM 52.49 0.26 778.08 0.94
WTR AQUA AMERICA INC 30.3 -0.09 651.06 0.78

Portfolio Statistics:

This is the expected dividend growth based on an $83,000 portfolio:

Questions?

Disclosure: I am/we are long AAPL ABBV ABT AFL AFSI AGR AMGN AMZA APD APO ARCC AVY BA BG BGS BIP BLK BPL BX CAH CAT CCP CE CF CHI CINF CME CMI CMRE CNNX CONE COR CSCO CSX CTRE DE DEA DFT DIS DOV DOW DRI EMR EPD ETN EV EVA FAST FIS FLIC GE GLOG GLW GNK HBAN HON HP HQH HRS HUBB IBM INTC IP ITW IVZ JCI JNJ KALU KHC LAZ LMT LYB MAIN MCD MDP MDT MET MGA MMM MMP MPLX MSFT MXIM NEWT NM NMFC NNA NSC NUE NVS NWBI OHI OKE PAA PAYX PETS PFE PFG PG PKG PNR PRU PSEC QCOM RDS.A RIO ROK RTN RY SEP SFL SIX SMLP STAG T TD TGT TROW TSM TXN UNP UPS UTX VZ WBA WHG WPZ WRK WTR.