DividendMax Model Portfolio 2013
This is the dividendMax model portfolio. The model portfolio outperformed the market dramatically in 2012 and also in 2013.
Price Earnings (P/E) data as at time of publication. The P/E is forward looking one year.
Weighting as at time of publication
Dividend Cover as at time of publication
Company |
Year-end price |
End-Q2 Price |
Performance |
Weighting (£1000 = 1%) |
Gain / Loss |
Meggitt |
527.5 |
519 | 1.6% |
0 |
£0.00 |
Diageo |
2000 |
1876 | 6.6% |
3 |
£198.29 |
Admiral |
1310 |
1329 | -1.4% |
5 |
-£71.48 |
BP |
488 |
454 | 7.5% |
4 |
£299.56 |
Balfour Beatty |
287 |
238 | 20.6% |
3 |
£617.64 |
3i |
385 |
338 | 13.9% |
4 |
£556.21 |
British Land |
629 |
566 | 11.1% |
3 |
£333.90 |
Amec |
1088 |
1006 | 8.1% |
4 |
£326.04 |
BHP Billiton |
1869 |
1678 | 11.4% |
10 |
£1138.25 |
Carillion |
331 |
275 | 20.0% |
7 |
£1425.45 |
First Group |
124 |
96 |
N/A |
5 |
£1458.33 |
Domino Printing |
765 |
623 | 22.8% |
4 |
£911.71 |
ITV |
194 |
140 | 38.6% |
5 |
£1928.57 |
Imperial |
2338 |
2280 |
2.5% |
3 |
£76.31 |
Kcom |
98 |
81.5 |
20.2% |
5 |
£1012.27 |
Glaxo |
1611 |
1642 | -1.9% |
5 |
-£94.39 |
Man Group |
85 |
83.4 | 1.9% |
4 |
£76.70 |
Marks & Spencer |
433 |
431 | 0% |
3 |
£13.92 |
RSA |
91.5 |
119 |
-23.1% |
4 |
-£924.37 |
Reckitt Benckiser |
4793 |
4648 | 3.1% |
3 |
£93.58 |
Sainsbury |
365 |
355 | 2.8% |
4 |
£112.67 |
Sage |
404 |
340.5 |
18.64% |
4 |
£745.96 |
SSE |
1370 |
1524 |
-10.1% |
3 |
-£303.14 |
Standard Chartered |
1360 |
1423 |
-4.4% |
6 |
-£265.63 |
Total Cash |
FTSE 100 |
Portfolio Performance |
£100,000.00 |
£103,432.74 |
£109,666.35 |
Model Portfolio Q2 performance. Capital performance only. Dividends not included.
Company |
End Q1 Price |
End-Q2 Price |
Performance |
Weighting (£1000 = 1%) |
Gain / Loss |
Meggitt |
490 |
519 | 5.9% |
3 |
£177.55 |
Diageo |
2069 |
1876 | -9.3% |
1 |
-£93.28 |
Admiral |
1329 |
1329 | 0 |
5 |
0 |
BP |
459 |
454 | -1.1% |
6 |
-£54.46 |
Balfour Beatty |
235 |
238 | 1.27% |
5 |
£63.83 |
3i |
316 |
338 | 6.96% |
4 |
£278.48 |
British Land |
542 |
566 | 4.4% |
3 |
£132.84 |
Amec |
1059 |
1006 | -5% |
4 |
-£200.19 |
BHP Billiton |
1917 |
1678 | -12.5% |
6 |
-£1614.98 |
Carillion |
272 |
275 | 1.1% |
7 |
£77.20 |
First Group |
201 |
96 |
N/A |
0 |
0 |
Domino Printing |
640 |
623 | -2.7% |
4 |
-£106.25 |
ITV |
129 |
140 | 8.5% |
9 |
£767.44 |
Imperial |
2296 |
2280 |
-0.7% |
3 |
-£20.9 |
Kcom |
81.5 |
81.5 |
0 |
5 |
0 |
Glaxo |
1538 |
1642 | 6.7% |
5 |
£338.10 |
Man Group |
89 |
83.4 | -6.3% |
4 |
-£251.68 |
Marks & Spencer |
389 |
431 | 10.8% |
4 |
£431.87 |
RSA |
116 |
119 |
2.6% |
4 |
£103.45 |
Reckitt Benckiser |
4720 |
4648 | -1.5% |
3 |
-£45.76 |
Sainsbury |
378 |
355 | -6.1% |
4 |
-£243.38 |
Sage |
342 |
340.5 |
-0.5% |
4 |
-£17.54 |
SSE |
1484 |
1524 |
2.7% |
3 |
£80.86 |
Standard Chartered |
1704 |
1423 |
-16.5% |
4 |
-£659.62 |
Total Cash |
FTSE 100 |
Portfolio Performance |
£100,000.00 |
£97,566.00 |
£99.152.58 |
Changes from Q2 to Q3
Meggitt from 3% to 0%
First Group from 0% to 5%
ITV from 9% to 5%
Diageo 1% to 3%
Balfour Beatty from 5% to 3%
BP from 6% to 4%
BHP from 6% to 10%
Marks & Spencer from 4% to 3%
Standard Chartered from 4% to 6%
H2 Performance
Company |
Entry Price |
End-Q1 Price |
Performance |
Weighting (£1000 = 1%) |
Gain / Loss |
Meggitt |
427 |
490 |
14.75% |
3 |
£442.50 |
Diageo |
1808 |
2069 |
14.43% |
1 |
£144.30 |
Admiral |
1199 |
1329 |
10.84% |
4 |
£336.00 |
BP |
450 |
459 |
1.02% |
6 |
£120.00 |
Balfour Beatty |
186 |
235 |
26.34% |
5 |
£1,317.00 |
3i |
229 |
316 |
37.99% |
4 |
£1,515.60 |
British Land |
579 |
542 |
-6.39% |
3 |
£191.70 |
Amec |
1030 |
1059 |
2.81% |
4 |
£112.62 |
BHP Billiton |
2145 |
1917 |
-10.62% |
6 |
£637.76 |
Carillion |
326 |
272 |
-16.56% |
7 |
£1,159.51 |
First Group |
199 |
201 |
1.00% |
4 |
£40.00 |
Domino Printing |
599 |
640 |
6.84% |
4 |
£273.60 |
ITV |
109 |
129 |
18.35% |
7 |
£1,284.50 |
Imperial |
2434 |
2296 |
-5.66% |
3 |
£170.09 |
Kcom |
72 |
81.5 |
13.19% |
5 |
£659.50 |
Glaxo |
1376 |
1538 |
11.77% |
4 |
£470.93 |
Man Group |
89 |
89 |
0.00% |
4 |
£0.00 |
Marks & Spencer |
370 |
389 |
5.13% |
4 |
£205.20 |
RSA |
126 |
116 |
-7.93% |
4 |
£317.46 |
Reckitt Benckiser |
3901 |
4720 |
20.99% |
3 |
£629.70 |
Sainsbury |
378 |
378 |
0.00% |
4 |
£0.00 |
Sage |
306 |
342 |
11.76% |
4 |
£470.40 |
SSE |
1460 |
1484 |
1.64% |
3 |
£49.20 |
Standard Chartered |
1680 |
1704 |
1.43% |
4 |
£57.20 |
Total Cash |
FTSE 100 |
Portfolio Performance |
£100,000.00 |
£106,370.00 |
£105,651.73 |
Company | 3 Div Yield | P/E | Cover | FDI | Sector | Price | Weighting |
---|---|---|---|---|---|---|---|
Meggitt plc | 7.14% | 12.4 | 2.1 | 4.3% | Aerospace & Defence | £4.27 | 0.0% |
Diageo plc | 3.08% | 17.5 | 2.0 | 6.4% | Beverages | £18.08 | 3.0% |
Admiral Group | 8.88% | 13.2 | 1.1 | 20.6% | Nonlife Insurance | £11.99 | 5.0% |
BP plc | 6.51% | 8.0 | 4.1 | 16.5% | Oil & Gas Producers | £4.50 | 4.0% |
Balfour Beatty plc | 6.8% | 8.4 | 2.6 | 6.5% | Construction & Materials | £2.82 | 3.0% |
3i Group plc | 4.42% | 0.0 | 2.0 | 2.5% | Financial Services | £2.29 | 3.0% |
British Land Co plc | 7.12% | 18.9 | 1.1 | 1.1% | Real Estate Investment Trusts | £5.79 | 3.0% |
AMEC Foster Wheeler | 4.39% | 13.7 | 2.4 | 14.8% | Oil Equipment, Services & Distribution | £10.30 | 4.0% |
BHP Group Plc | 4.57% | 13.0 | 3.1 | 8.5% | Mining | £21.45 | 10.0% |
Carillion | 7.05% | 7.9 | 2.7 | 4.7% | Support Services | £3.26 | 7.0% |
First Group | 16.0% | 6.7 | 1.3 | 7.0% | Travel & Leisure | £1.99 | 5.0% |
Domino Printing Sciences PLC | 4.97% | 16.2 | 1.7 | 6.7% | Industrial Engineering | £5.99 | 4.0% |
ITV | 3.17% | 12.7 | 4.8 | 50.0% | Media | £1.09 | 5.0% |
Imperial Brands Plc | 7.51% | 11.6 | 2.1 | 8.0% | Tobacco | £24.34 | 3.0% |
Kcom Group Plc | 7.64% | 9.9 | 1.7 | 11.8% | Telecomms | £0.72 | 5.0% |
GSK Plc | 7.3% | 12.5 | 1.6 | 5.7% | Pharmaceuticals & Biotechnology | £13.76 | 5.0% |
Man Group Plc. | 15.05% | 18.2 | 0.7 | 36.7% | General Financial | £0.89 | 4.0% |
Marks & Spencer Group | 5.5% | 11.2 | 2.0 | 1.2% | Retailers | £3.70 | 3.0% |
RSA Insurance Group Limited | 10.72% | 11.3 | 1.6 | 3.2% | Nonlife Insurance | £1.26 | 4.0% |
Reckitt Benckiser Group Plc | 4.87% | 15.8 | 1.9 | 4.8% | Household Goods | £39.01 | 3.0% |
Sainsbury (J) plc | 6.86% | 11.1 | 1.8 | 6.8% | Food and Drug Retailers | £3.78 | 4.0% |
Sage Group plc | 5.39% | 14.2 | 2.4 | 9.3% | Software & Computer Services | £3.06 | 4.0% |
SSE Plc | 7.27% | 12.9 | 1.4 | 5.1% | Electricity | £14.60 | 3.0% |
Standard Chartered plc | 4.81% | 12.6 | 2.7 | 9.7% | Banks | £16.80 | 6.0% |
Aerospace & Defence
Meggitt plc
Here we choose Meggitt over BAE systems this year. Meggitt issued a pretty good interim management statement toward the end of 2012 and whilst it does not yield as highly as BAE systems, it has superior dividend cover and a higher forecast dividend increase.
Banks
Standard Chartered plc
Last year we made a pretty good choice in Close Brothers, but this year we are going to go for Standard chartered with a lower yield, but with high exposure to the strong Far East market.
Beverages
Diageo plc
We went for Britvic last year and it was taken over (or is in the process) This year we will go for Diageo, albeit with a pretty low weighting as this sector looks expensive.
Construction & Materials
Balfour Beatty plc
We are going to stick with last years choice - Balfour Beatty. We will keep a lowish weighting as the sector will remain under pressure due to the governments finances not being great.
Electricity
SSE Plc
Price earnings ratios remain high compared to the yields on offer, but this year, we will take a small position in SSE, with its consistent track record of dividend increases.
Financial Services
3i Group plc
There is a great deal of choice in this sector, but in the end, we went for 3i because it allows the investor to spread his or her investments across the globe and across sectors. Add to that the massive increase in the dividend promised for this year and 3i looks good value at these levels.
Food and Drug Retailers
Sainsbury (J) plc
It is difficult to choose between the big three, but in spite of it's lower dividend cover, we have just gone with the optimizer. At 6.5%, Sainsbury is yielding more than rivals Tesco and William Morrison. The gap has narrowed from last year though, showing that we made the right choice.
General Financial
Man Group Plc.
After the success of Hargreaves Lansdown last year, this year we go for a recovery play with Man Group
Household Goods
Reckitt Benckiser Group Plc
It pays to have something from this sector due to the global coverage and exposure to the BRIC economies where Reckitts products are in a growth phase. The P/E says fair value, but the yield is unusually high for this sector.
Industrial Engineering
Domino Printing Sciences PLC
We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.
Media
ITV
ITV was a recovery play for last year. We believe it has a way to go.
Mining
BHP Group Plc
The mining sector has shown good recovery of late as it becomes apparent that China is still doing O.K. BHP Billiton is our choice.
Nonlife Insurance
Admiral Group, RSA Insurance Group Limited
Catlin, Admiral and Amlin all pay big. Admiral is our choice this year.
Oil Equipment, Services & Distribution
AMEC Foster Wheeler
AMEC has a fantastic track record of increasing dividends. We will stick with Amec for another year.
Oil & Gas Producers
BP plc
The baggage from the deep water horizon spillage is abating slowly, so we go for BP, which has strong dividend cover and therefore scope for decent dividend increases.
Pharmaceuticals & Biotechnology
GSK Plc
Glaxo is a dividend paying giant with a long time track record of increasing the payout year in, year out and almost always accompanied by share buybacks. With it's new strategy of focussing on growth markets and reducing exposure to the high litigation Pharmaceutical sector, this is a must for any portfolio.
Real Estate Investment Trusts
British Land Co plc
We see no value in this sector. Price earnings ratios are too high compared to the yields on offer.
Retailers
Marks & Spencer Group
There were some real highs and low last year giving some great capital gains opportunities, which were seen in the trading portfolio. However, Home retail and Halfords have recovered substantially. In spite of the recent slightly disappointing trading update, we feel we are playing safe this year with Marks and Spencer.
Software & Computer Services
Sage Group plc
Logica was taken over last year. This year we are going for Sage.
Support Services
Carillion
This year we go for the highest yielder in the sector, which is Carillion, which has a great track record.
Telecomms
Kcom Group Plc
TalkTalk was a standout performer last year, almost doubling. The choice is not so straightforward this year but we are going for minnow, Kcom.
Tobacco
Imperial Brands Plc
Imperial Tobacco is our choice here
Travel & Leisure
First Group
First Group is the clear winner here, although beware the issues surrounding rail franchises.