Watching Dividends Rise: A Typical Dividend-Growth Portfolio
David Van Knapp submits:In 2008, I re-tooled an existing aimless portfolio to become a focused dividend-growth portfolio. I did this in conjunction with publication of the first in what has become an annual series of e-books on dividend investing. The current edition is TOP 40 DIVIDEND-GROWTH STOCKS FOR 2011: How to Create Wealth or Income from Dividend-Growth Stocks. When I retooled the portfolio, I gave it a great name (Dividend Growth Portfolio) and used the e-book as a guide not only to what stocks to select but also to how to manage the portfolio. I created a strategy document and set of rules to govern the portfolio.The Dividend Growth Portfolio's purpose is to demonstrate the results that can be achieved by following sound dividend-growth investing principles. I consider it in many ways to be a typical portfolio of its type. It is not a hypothetical, model, or back-tested portfolio. It is real, reflecting decisions made in real time..I thought that it would be instructive to take a look at the portfolio now that it has three full years under its belt.As should be obvious, the main focus of a dividend-growth portfolio is to create streams of dividends that become ever-larger over time. This portfolio is doing that. Year Dividends Yield on Cost Change 2008 $1316 3.3% 2009 $1568 3.9% 19% 2010 $1799 4.5% 15% The yield on cost is based on the original value of the portfolio ($40,000). Note how the dividend stream and yield on cost both march continuallyComplete Story »
- Original article
- Login or register to post comments

