Our International Dividend Portfolio dropped -7.78% in € and -9.95% in US$ in March, compared to -13.66% for the Dividend Aristocrats Index. Year-to-date the performance is now -23.39% for the Dividend Aristocrats Index, while the International Dividend Portfolio dropped -16.2% in US$. Representing an outperformance of almost 7.2%.
Since inception in 2009, the portfolio has returned 227% in US$ and 322% in €, excluding reinvesting dividends.
Below a chart on the performance since 2009.
In 2019 the performance was 23.8% in US$ and 26.5% in € and the portfolio generated 10.320 US$ this year in dividends.
Calendar Year Performance
Our International Dividend Portfolio objective is to generate dividend income every month, based on international dividend growth stocks and over the long-term preserve and grow the invested capital. The total return is expected to follow the MSCI World index and to aim for dividend growth rate between 4%-9%.
Looking back on the last 11 years, the dividend growth rate is on average 7.2% and the annualized return for this period is 13.2%, while the MSCI World index returned 10.08%.
See below how the annualized returns (CAGR) have evolved over time.
Figure 2: annualized returns (CAGR) International Dividend Portfolio
We created the International Dividend Portfolio, so customers can follow a selection of international dividend stocks. Some investors could mirror the portfolio holding for holding, but others use the list to generate investment ideas and make sense of trends and risk/returns in their own portfolios.
If you decide to mirror the portfolio, our recommendation would be to invest equally across all holdings. This provides diversification between stocks, sectors, and currencies. Preferable the value of one individual stock is always below 5%-8%. Some holdings may appear undervalued and some overvalued, so we provide some guidelines/rules when to buy or not to buy. Please take into account that there is currency risk.More details and the dividend stocks in portfolio are available to members.