UK Dividend Stocks Model Portfolio

The UK Dividend Stocks Membership Program is based around a virtual "model portfolio" which holds exactly the same stocks as my real-world portfolio.

The aim is to provide an educational resource for sensible, long-term dividend investors, by showing them every aspect of how a portfolio of dividend stocks can be managed in the real world.

Investment goals

The model portfolio is a dividend growth portfolio, so it has the following goals:

1. High Yield: Higher than the FTSE All-Share, ideally aiming for 5% or more
2. High growth: Higher than the FTSE All-Share, ideally aiming for a 5% dividend growth rate or more (giving a total return target of 10%)
3. Low risk: Suffer smaller annual declines than the FTSE All-Share

There is also a fourth goal, which is to grow the portfolio to £1 million by 2041 from its starting value of £50,000 in 2011. This is just to keep things interesting as the decades fly by, and it requires an annualised return of 10% per year over 30 years.

Investment strategy

To achieve these goals, the portfolio invests in high-quality dividend growth stocks using a simple three-step strategy.

1. Own high-quality dividend growth stocks
2. Own them at attractive valuations
3. Own a portfolio that is both concentrated and diverse

Performance

Stock markets go up and down over the short term, so performance should be measured over five years at the very least, and preferably ten years. 

The charts and tables below should give you a good idea of how the portfolio has performed over the longer term. 

Note that the 5% yield goal was new in 2021, so don't judge the portfolio's pre-2021 yield by that standard.