This portfolio and post were created in 2018 to begin testing the Dividend System™. It’s performed well, delivering returns that are 12% above the market!
Using the Dividend System™ we have created a model portfolio designed to maximize long-term growth. This portfolio is intended for younger investors with a long horizon until retirement (at least 20 years.) So this should be appropriate for investors below 45-50 years young.
To select the stocks held in the portfolio, we use our unemotional Dividend System™. Our internal studies have shown that high free cash flow growth, high dividend growth rates, low debt, and a minimum 7 years of increasing dividend payments can yield total returns in excess of the market benchmark, the S&P 500.
Readers are cautioned that model portfolios like ours are developed not for individual situations, but to demonstrate examples of selecting stocks, managing holdings, and weighing alternatives. No investor should blindly follow this portfolio. Individual situations, goals, dreams, and economics must be taken into account before any buying decision. We urge you to use this list as a starting point for further research before making any investment decisions.
With that said, here’s the 25 stock Model Dividend Portfolio: Long Term Growth.
We will update the portfolio monthly to keep readers informed of changes and the relative successes (or failures) of the strategy. Comments, suggestions, friendly and respectful debates welcome!For the purposes of the portfolio, these purchases were made on July 20th, 2018, using the market closing price. This works out nicely to give you a chance to research stocks before the end of the month, i.e., payday!
Disclosure: I am/we are long CHD, HRL, NKE, SBUX, TJX, VFC.
Additional disclosure: I have no intention of buying more or selling these in the near future.