I’m excited to announce that I’ve created a variety of model portfolios to each follow a slightly different approach to dividend growth investing!  The model portfolios are available within the Dividend Growth Insiders program.

Below you’ll find more info about the model portfolios I have created along with the rules I plan on following within the portfolios.  I’ll also reveal one of the portfolios with the initial transactions to get it started.

5 Different Dividend Growth Model Portfolios

I’ve created 5 different portfolios to each track a slightly different approach to dividend growth investing.  The portfolios are:

  • Highest Dividend Growth Success Rating Portfolio - Within the Dividend Growth Insiders program, each company that is followed has a calculated “Dividend Growth Success Rating (DGSR)” based on a variety of financial growth and valuation metrics that I believe to be important to successful dividend growth investing.  This portfolio is focused on purchasing the highest rated companies with the idea that these should offer the best long term return.
  • Highest Dividend Yield Portfolio - This portfolio aims at investing in the dividend growth companies within the Dividend Growth Insider Database that have the highest current dividend yields.  The idea behind this strategy is to follow along and see if investing in higher yielding companies may yield better long term results.
  • Undervalued Dividend Stocks Portfolio - This portfolio focuses on purchasing stocks of companies that are currently undervalued.  The portfolio finds undervalued stocks by using the Dividend Growth Insider Stock List of companies currently trading with a P/E ratio lower than their historical 10 year average P/E ratio.  This portfolio should demonstrate that investing in undervalued stocks yields the best long term total returns.
  • Highest Earnings Per Share (EPS) Growth Portfolio - This portfolio invests in the companies with the highest 5 year EPS growth rates.  This portfolio should demonstrate the benefit of investing in those companies with the ability to grow their earnings the fastest.
  • Dollar Cost Average Portfolio - This portfolio invests in 20 of the most popular dividend growth companies.  Each month this portfolio will invest an equal amount among the 20 companies making up the portfolio regardless of valuation.  The goal of this portfolio is to see if taking a strictly dollar cost averaging strategy into some of the most popular stocks will yield solid long term results.

Each portfolio was funded with $5,000 to start on August 1st, 2014.  Each month another $1,000 will be contributed to each portfolio.  Each portfolio will be built up to hold a total of 20 companies in total with roughly equal weightings in each company.

Within each model portfolios page, I will document all buy/sell transactions along with the funds dividends earned and total returns.

If you are already a Dividend Growth Insider, you can find the model portfolios here.  Become an Insider for just $4.99 your first month!

Portfolio Rules

Within each model portfolios page, you can find more specific rules for that particular portfolio.  Here is a list of general rules that I will follow for each portfolio:

  • Each portfolio was funded with $5,000 on August 1st, 2014.
  • Each month, another $1,000 will be contributed to each portfolio to be invested.
  • New buys will be in roughly $1,000 increments.
  • Dividends will be collected in cash and added to the next months contributions for new buys.
  • Assuming a $4.95 trade commission on each portfolio using TradeKing ($9.95 commission for the Dollar Cost Average Portfolio using Motif)
  • Buys will be made on the first Friday of each month.
  • Each portfolio will be built up to 20 companies total with roughly equal weightings in each company.
  • Within each portfolio page, I will report the trades made, dividends earned and total returns earned.

DGSR Portfolio

Here you can find the first model portfolio I have set up which purchases the top rated stocks from the Dividend Growth Insider database.  I have created a calculation which gives each company a Dividend Growth Success Rating to identify a company’s long term investment prospects.

The first purchases for this portfolio included 18 shares of Aflac, 12 shares of Deere & Co., 13 shares of Wal-Mart Stores, 23 shares of Microsoft and 12 shares of T. Rowe Price.  Check out the table below for the initial model portfolio.

Company
Symbol
DGSR
Shares
Cost
Price
Market Value
% Portfolio
AflacAFL85181,069.1159.12$1,064.1621.4%
Deere & Co.DE85121,024.4784.961,019.5220.5%
Wal-Mart StoresWMT8413960.9773.54956.0219.2%
MicrosoftMSFT8323990.7342.86985.7819.8%
T. Rowe Price GroupTROW8312936.8777.66931.9218.7%
Cash17.850.4%
Total$4,975.25

Interested in Following Along with the Portfolios?

Updates for these portfolios will only be available to Dividend Growth Insiders.

Currently, I have a special offer of $4.99 for your first month of membership.  Learn more about becoming a Dividend Growth Insider here!

 

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4 Responses to Introducing! Dividend Growth Model Portfolios

  1. Excellent Dan. I can’t wait to look under the hood!
    -Bryan

  2. That’s a great idea to see how things evolve going forward with different portfolio construction. I’ll definitely have to stop in and check these out.

    • Dan Mac says:

      Thanks JC and Bryan! I’m real curious to see how the different portfolio strategies turn out over time. I’ll be interested to see if one strategy really stands apart from the others. Right now for my personal portfolio, I use a more balanced approach which is to say I purchase stocks that fit all these different strategies.

  3. FerdiS says:

    Hi Dan — this is a really cool idea; a dividend portfolio arm-wrestle match of sorts. It would be interesting to see which of these strategies win out!

    BTW, I’ve added your blog to my newly expanded blogroll page at http://divgro.blogspot.com/p/blogroll.html

    Cheers
    FerdiS

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