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The UK Dividend Stocks Portfolio

This portfolio is the centrepiece of the UK Dividend Stocks Newsletter.

A Portfolio of Quality Dividend Stocks

The UK Dividend Stocks Portfolio is, as the name suggests, invested exclusively in UK-listed stocks.

Most of its 25 or so holdings are in the FTSE 100 or FTSE 250, with the remainder being members of the FTSE Small Cap, FTSE Fledgling or AIM UK-50 indices. Many holdings also have long track records of consistent dividend growth, typically extending back at least 20 years.

This is a virtual portfolio, but it takes account of all real-world expenses including trading fees, stamp duty and the cost of an annual subscription to The UK Dividend Stocks Newsletter.

A Systematic Investing Strategy

The portfolio is managed using an updated version of the strategy in The Defensive Value Investor. If you don't want to read the whole book, you'll find a summary of the strategy in the Company Review Checklist, which is used to make buy and sell decisions on a monthly basis.

Three Performance Goals

The portfolio was launched in 2011 and it has three performance goals which, in order of importance, are:

  1. Dividend Yield higher than the FTSE All-Share's at all times
  2. Dividend Growth ahead of CPI inflation over ten years
  3. Total Return higher than the FTSE All-Share's over ten years
UK Dividend Stocks Portfolio - Dividend Yield
UK Dividend Stocks Portfolio - Dividends per year
UK Dividend Stocks Portfolio - Total Return

Portfolio Diversification

To reduce risk, the portfolio is broadly diversified by company, sector and country:

  • The portfolio holds 24 or 25 approximately equally weighted holdings
  • The target position size for new holdings is 4%
  • Holdings that grow above 6% are trimmed back to 4%
  • Holdings that fall below 2% are either topped up to 4% or sold
  • No more than two holdings can operate in the same sector
  • No more than 50% of the portfolio's revenues can be generated in the UK
UK Dividend Stocks Portfolio - Total Return
UK Dividend Stocks Portfolio - Total Return
UK Dividend Stocks Portfolio - Total Return

Interim and Annual Portfolio Reviews

The portfolio is reviewed twice each year, with the review covering performance, recent changes to the portfolio's holdings and other relevant news:

You can find earlier reviews on this website's predecessor:

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, 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.