If you’re interested in how a real-world dividend growth portfolio performs over time, this episode is for you. In this community dividend portfolio review, we look at how a portfolio built by Dividend Talk listeners themselves performed through 2025, what worked, what surprised us, and what it tells us about long-term dividend growth investing as European investors.

This episode was recorded in 2026. The principles are evergreen, but market conditions, valuations, and individual company circumstances can change over time.

A Wild Start to 2026

We start the episode by setting the scene. Early 2026 has already delivered sharp market moves, driven by year-end tax selling reversals, shifting sentiment, and a constant stream of geopolitical headlines. For many investors, portfolios jumped sharply in the first trading days of January, especially value-oriented holdings that had been under pressure late in December.

This kind of volatility is a reminder that short-term market moves are often driven by flows, positioning, and calendar effects rather than fundamentals. As dividend growth investors, our job isn’t to predict these moves, but to stay focused on business quality, cash flow, and long-term income growth.

Why Macro Noise Still Matters

Although Dividend Talk isn’t a macro podcast, ignoring the broader environment entirely isn’t realistic either. In this episode, we discuss increasing US political volatility, currency effects for European investors, and the growing question of whether global capital flows may start to look different over the next decade.

For European investors, currency can be just as important as share price. A strong or weak dollar can dramatically change reported returns, even when the underlying companies are performing well. This reinforces the case for diversification across regions and currencies, rather than concentrating everything in one market.

Novo Nordisk, Market Leadership, and Competitive Pressure

Novo Nordisk once again features heavily in the discussion, reflecting its importance in many dividend growth portfolios. We talk through recent developments around weight-loss treatments, new distribution channels, and the trade-off between growth, margins, and long-term brand power.

The key takeaway isn’t whether Novo Nordisk will win or lose in the short term, but how even dominant businesses face constant pressure to adapt. First-mover advantage helps, but it doesn’t eliminate competition, pricing risk, or execution challenges. For long-term investors, this reinforces the importance of watching cash flows and capital allocation rather than reacting to headlines.

The Community Dividend Portfolio: How It Performed

The core of the episode is the review of the Dividend Talk community portfolio. This portfolio was not picked by the hosts. It was built by the community and invested into monthly, making it a useful real-world experiment.

Over 2025, the portfolio delivered a total return of roughly 15.6%, comfortably ahead of the S&P 500’s reported return of around 13% for the year. While one year never proves a strategy, it does highlight the power of quality-focused dividend growth investing when combined with patience and diversification.

The portfolio blends European and US companies, defensive sectors and growth-oriented businesses, and income with capital appreciation. It’s not designed to chase maximum returns, but to compound steadily while paying a growing income along the way.

Companies Mentioned in This Episode

The community portfolio includes a mix of well-known global businesses across sectors and regions. These include Agree Realty, ASML, Automatic Data Processing, Johnson & Johnson, L’Oréal, LVMH, Microsoft, Realty Income, Shell, and Visa.

These companies were discussed to illustrate portfolio construction, performance drivers, and different business models. These are mentioned for context, not as recommendations.

Dividend Growth vs ETFs: An Ongoing Debate

Several listener questions focused on whether dividend growth investing still makes sense compared to distributing ETFs. We revisit this honestly. For many people, ETFs are absolutely the right solution, especially if they don’t enjoy analysing companies or following earnings.

However, for investors who want growing income, more control over taxation, and a closer link between business performance and cash flow, individual dividend growth stocks still offer advantages. The right answer depends less on returns and more on temperament, tax situation, and what helps you stay invested through difficult periods.

Lessons from the Questions

Listener questions covered everything from oil majors and dividend safety, to brand power erosion, to when to stop reinvesting dividends into a single stock. A recurring theme runs through all of them: humility.

No checklist or metric replaces judgement. No strategy works perfectly every year. What matters most is having a clear process, understanding why you own what you own, and being honest with yourself when circumstances change.

Chapters From the Episode

0:00–3:10 – Market volatility and the start of 2026
3:10–9:10 – Macro noise, currency effects, and Europe vs US exposure
9:10–16:40 – Novo Nordisk, competition, and pricing power
16:40–31:30 – Community portfolio performance and structure
31:30–45:30 – Portfolio holdings discussion and business quality
45:30–59:50 – Fundsmith letter, index concentration, and market structure
59:50–1:22:10 – Listener questions and practical investing lessons

Where to Go Next

If you enjoyed this episode, you may also find these useful:

EP 144 – Why Dividend Investing is the single best dividend strategy
EP 212 – High Yield dividend Investing
EP 247 – Our Thoughts on Valuation mentrics

DISCLAIMER:Dividend Talk is not a licensed or registered investment adviser or broker/dealer. We are not providing you with individual investment advice on this site. Please consult with a licensed investment professional before you invest your money. This site is for entertainment, informational, and educational use only.Any opinion expressed on the site here and elsewhere on the internet is not a form of investment advice provided to you. We use information, data, and sources in the articles we believe to be correct at the time of writing them, but there is no guarantee of their accuracy, completeness, timeliness, or correctness. We are not liable for any losses suffered by any party because of information published on this site. Past performance is not a guarantee of future performance. By reading this site or subscribing to it, you agree that you are solely responsible for making investment decisions with your funds.