The UK Dividend Stocks Portfolio

Building a Million Pound Dividend Portfolio

I launched the UK Dividend Stocks Portfolio 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: The portfolio's annualised total return (including reinvested dividends) over any rolling 10-year period should exceed 10%
• Dividend Yield Goal: The dividend yield should always exceed 5%

If those goals turn out to be overly optimistic, then at the very least the portfolio should beat the FTSE All-Share in terms of dividend yield and capital gains.

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.

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. 

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 and sale reviews contain useful lessons for serious investors, so I've published my purchase and sale review for all ex-holdings below.