An Income-Growth Portfolio For 2012: 4%+ Yield, Dividend Growth And Lower Beta

Background In mid-August, I created three model Dividend Growth stock portfolios based on a U.K. research study's findings regarding subgroups of DG stocks that historically outperformed. Since that time, I also developed some working theories on a potential indicator ( -20% rule ) of future dividend cuts and/or price declines, which I have applied to these models. The table below highlights the performance of these three portfolios, as well as a variation on the Income-Growth portfolio that utilized the 20% rule to actively remove and replace stocks that exhibited that pattern. Click to enlarge All of my model DG portfolios (Small-cap, Div Aristocrat+, Income-Growth) started with $300,000 on August 16th, 2011, and have outperformed the S&P (SPY) and S&P Dividend ETF (SDY) over the last five months. In addition, with the exception of the small cap portfolio, they did so with lower standard deviation of returns than the S&P as... Read more