The UK Dividend Stocks Portfolio

Launched in 2011, the UK Dividend Stocks Portfolio holds a diverse collection of around 25 high-quality UK dividend stocks, mostly from the FTSE 100 and FTSE 250. You can follow every holding and every trade in the UK Dividend Stocks Newsletter. 

A Model Portfolio for UK Dividend Investors

The UK Dividend Stocks Portfolio is a virtual version of my real-world portfolio. It holds exactly the same stocks with approximately the same position sizes, and the only real difference between the two portfolios is their size. 

While this is a virtual portfolio, it's extremely realistic because it deducts all real-world expenses including broker fees, stamp duty and the cost of an annual subscription to The UK Dividend Stocks Newsletter.

The idea is to have a completely transparent portfolio where I can share every detail of every trade and every investment decision, without divulging the size of my own modest portfolio.

A Systematic Dividend Investing Strategy

I manage the portfolio using an updated version of the strategy detailed in my 2016 book, The Defensive Value Investor. If you don't want to read the whole book, you can read a summary of my investment strategy in this blog post: 

You can also download my investment checklist from the Dividend Investing Resources page.

Performance Goals

This is a defensive UK dividend portfolio, so it has two performance goals:

  1. Have a higher dividend yield than the FTSE All-Share
  2. Generate a higher total return than the FTSE All-Share over five or more years 

Performance Summary

The charts and table below track the portfolio's total return and dividend yield from inception in March 2011, in both percentage and absolute terms.

Note that the UK Dividend Stocks Portfolio and its FTSE All-Share benchmark portfolio were both launched with a virtual starting value of £50,000.

UK Dividend Stocks Portfolio - Dividend Yield
UK Dividend Stocks Portfolio - Dividends per year
UK Dividend Stocks Portfolio - Total Return
UK Dividend Stocks Portfolio - Total value
Performance to May 2024UKDS PortfolioFTSE All-ShareDifference
Dividend yield5.7%3.7%2.0%
10-Year total return54%76%-21%
5-Year total return11%30%-19%
3-Year total return4%24%-20%
1-Year total return-3%8%-11%

Broad Diversification

This is a defensive dividend portfolio, so the portfolio is broadly diversified by company, country, industry and sector.

The portfolio is managed in line with the following diversification rules:

  • Aim for 25 holdings and an average position size of 4%
  • Maximum position size of 6%, minimum position size of 2%
  • At least 80% of the portfolio must be in either the FTSE 100 or FTSE 250
  • At least 20% of the portfolio must operate in defensive industries
  • No more than 20% of the portfolio can operate in highly cyclical industries
  • No more than 20% of the portfolio can be invested in any one industry
  • No more than 10% of the industry can be invested in any one sector
  • On average, holdings must generate at least 50% of their revenues outside the UK¬†
UK Dividend Stocks Portfolio - Company Diversity
UK Dividend Stocks Portfolio - Sector Diversity
UK Dividend Stocks Portfolio - Sector Diversity
UK Dividend Stocks Portfolio - Size Diversity

Regular Portfolio Reviews

The portfolio is reviewed several times each year. These reviews cover performance, recent changes to its holdings and any other relevant news:

You can find earlier reviews on my old website:

Buy and Sell Reviews for Past Holdings

The portfolio follows a long-term investing strategy so there is relatively little in the way of trading activity on a day-to-day basis. 

In a typical month, there might be one new holding added to the portfolio, or one existing holding removed. With around 25 holdings, this means that each holding usually remains in the portfolio for at least several years. 

When companies are added to or removed from the portfolio, a detailed review (typically around ten pages) is published in the monthly UK Dividend Stocks Newsletter and you can download these buy and sell reviews for all past holdings below.

This website provides information, education and tools for investors. It does not provide financial advice or recommendations to buy or sell any specific investment. If you're not sure if an investment is right for you, you should speak to a regulated financial adviser. Please read the disclaimer for more details.