The UK Dividend Stocks Portfolio

This is the centrepiece of the UK Dividend Stocks Newsletter. Launched in 2011, it's a concentrated portfolio of around 20 high-quality dividend stocks from the FTSE All-Share index.

Building a Million Pound Dividend Portfolio

The UK Dividend Stocks Portfolio was launched in 2011 with a starting value of £50,000. This is a virtual portfolio but it holds exactly the same stocks as my real-world portfolio and it has four main goals:

  1. To grow to £1 million before the end of 2041 (with all dividends reinvested)
  2. To generate annual dividends of £50,000 before the end of 2041
  3. To be a test-bed where investing theory can be refined into practical real-world guidance
  4. To show investors how a portfolio of quality dividend stocks can be managed in the real world 

To reach a value of £1 million and a dividend income of £50,000 by the end of 2041, the portfolio needs to hit these performance goals:

  • Total Return Goal: Total 10-year annualised return should exceed 10%
  • Dividend Yield Goal: Dividend yield should always exceed 5%

A Systematic Dividend Investing Strategy

The portfolio is managed according to an updated version of the methodical, systematic investment strategy described in John Kingham's book, The Defensive Value Investor. You can read a high-level overview of the strategy in this blog post.

Regular Portfolio Reviews

You can read regular portfolio reviews on the UK Dividend Stocks Blog, as well as detailed buy and sell reviews for any holdings sold. Pre-2021 portfolio reviews are on this website's predecessor, UKValueInvestor.com.

Performance

The charts and tables below show the portfolio's performance versus a FTSE All-Share tracker (accumulation fund) and also the 5% dividend yield and 10% annualised total return targets.

Please note that the 5% dividend yield goal was only introduced in 2021, so it isn't an appropriate benchmark before that date.

Buy and Sell Reviews for Past Holdings

The investment strategy involves buying quality dividend stocks at value-for-money prices and holding them as long as both conditions remain true.

If one of the companies in the portfolio weakens to the point where it is no longer a quality business, it will be sold.

Alternatively (and preferably), if a holding's share price increases to the point where it no longer seems to offer value for money, it will be sold. 

Clearly this is not a buy-and-hold strategy, but it isn't high-frequency trading either. In a typical month, there might be one buy or sell trade, plus one or two trim or top-up trades (to rebalance holdings back to their target position size).

Every buy, sell, trim or top-up decision is written up and published in the UK Dividend Stocks Newsletter a few days before the trade is carried out.

You can read buy and sell reviews for all of the portfolio's past holdings below. 

Important notice: This website provides information and education for investors. It does not provide financial advice. If you need personal financial advice you should speak to a regulated financial adviser.