The UK Dividend Stocks Portfolio

Building a Million Pound Dividend Portfolio

I launched the UK Dividend Stocks Portfolio in early 2011 with a starting value of £50,000. It's a virtual portfolio that is effectively identical to my real-world portfolio in every way other than size.

The portfolio has the following goals:

1. To invest in a diverse group of 15-20 quality dividend stocks from the FTSE All-Share
2. To have a higher dividend yield than the FTSE All-Share and ideally above 5%
3. To produce higher long-term total returns than the FTSE All-Share, ideally above 10%
4. To avoid excessive risk (this is hard to define, but the intention is clear)

If the portfolio achieves my ideal goals and if I reinvest all dividends (which I do) then it will also hit the following long-term targets:

• Long-term growth goal: Grow the portfolio to £1 million by the end of 2042
• Long-term income goal: Grow the dividend to £50,000 by the end of 2042 

I use these long-term goals partly for motivation, but also as a reminder to focus on the long-term and not to get too worried about the short-term ups and downs of the stock market.

A Systematic Dividend Investing Strategy

I manage the portfolio using an updated version of the investment strategy described in my book, The Defensive Value Investor. You can find out more about this strategy and how to apply it yourself on the Free Resources page.

Regular Portfolio Reviews

I publish regular portfolio reviews on the UK Dividend Stocks Blog, and pre-2021 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.

Buy and Sell Reviews for Past Holdings

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

In a typical month I might add one holding to the portfolio or remove one existing holding, and in either case I'll write up my reasoning in detail in the monthly UK Dividend Stocks Newsletter. 

I think these purchase reviews and sale reviews contain useful lessons for serious investors, so I've included reviews for all of my portfolio's ex-holdings below.