Here are the top 20 stocks in my Dividend Portfolio as of 10/31/09 ranked by size of holdings.

1. Kinder Morgan Energy (KMP) USA
2. Barclays PLC (BCS) UK
3. DCP Midstream Partners (DPM) USA
4. HRPT Properties Trust (HRP) USA
5. Penn West Energy Trust (PWE) Canada
6. Procter & Gamble (PG) USA
7. Johnson & Johnson (JNJ) USA
8. General Electric Company (GE) USA
9. American Capital (ACAS) USA
10. Exxon Mobil Corporation (XOM) USA
11. Banco Santander (STD) Spain
12. GlaxoSmithKline (GSK) UK
13. Deutsche Bank (DB) Germany
14. Diana Shipping Inc. (DSX) Greece
15. Aircastle Limited (AYR) USA
16. Cooper Tire & Rubber (CTB) USA
17. ONEOK, Inc. (OKE) USA
18. Newell Rubbermaid Inc. (NWL) USA
19. Seagate Technology (STX) USA
20. Duke Energy Corporation (DUK) USA

Since I am a fan of the Tweedy Browne Funds, here is an update of the Tweedy, Browne Worldwide High Dividend Yield Value Fund as of 10/31/09.

1. Total SA France
2. Muenchener Rueckver Germany
3. Glaxosmithkline PLC UK
4. Unilever NV Netherlands
5. CNP Assurances France
6. Novartis AG Switzerland
7. Pearson PLC UK
8. 3M Co USA
9. Philip Morris Int’l USA
10. Diageo PLC UK
11. Emerson Electric Co USA
12. Vodafone PLC UK
13. Conocophillips USA
14. Genuine Parts Co USA
15. Eni Spa Italy
16. Coca Cola Co USA
17. Johnson & Johnson USA
18. Embotelladoras Arca Mexico
19. AT&T Inc USA
20. Akzo Nobel NV Netherlands

My Annualized Dividend Income as of the end of October increased to $5,381 from $5,378 for the month. This means my dividend stocks will pay $5,381 in dividends over the next 12 months.

I made a few small dividend stock purchases over the past month from dividend distributions. It looks like the economy is showing some signs of stabilizing and we will have fewer dividend cuts for the rest of the year.

My Dividend Income Goal for 2009 was $7,000 in yearly dividend income but due to the poor economy and dividend cuts, I will have to review that goal. I think $5,500 would be a much more realistic and challenging goal over the next few months.

Most of my stocks are held in my Zecco Trading account and the rest are DRIPs. The dividends from my stocks are reinvested but I am keeping track of the amount of income I could receive once I retire or choose to receive the dividends in cash.

I will post my Top 20 Stock Holdings on Wednesday.

As of the end of October our Net Worth decreased to $747,078 from $755,013 for the month which is a 1.05% decrease. For now the markets look like the have settled but we will have to wait and see if the economy slowly starts to recover.

The breakout is as follows:
ASSETS
Retirement Accounts $366,513
Taxable Accounts $116,147
Cash $18,358
Home $205,000
Cars $9,000
Personal Property $3,000
Kids 529 Accounts $29,060

Here is the summary for this month:

Our Net Worth decreased the past month due mostly to the drop in the stock market. We are now debt free since we paid off our credit card debt. We will continue to use our credit cards for rewards but payoff the balances each month. I received around $100 in dividends for the month and have used the cash from these dividends to make additional stock purchases of our dividend stocks but I have not been adding much extra money.

We will be building up our cash over the next few months to increase our cash reserves. You can click on my Net Worth graph on the right to see the changes in each category from the previous month. I continued funding our Roth IRA's each month.

I will post my Dividend Income Update on Tuesday.

Value manager John Osterweis has been focusing on high-yielding stocks in the current weak economy. Mina Kimes of Forture Magazine has a recent portfolio update with John Osterweis. Here are the highlights: Funds that are way up: Osterweis

A true bottom-up investor, John Osterweis doesn't make big sector bets -- so it's not surprising that his winning stocks this year were a varied bunch, including garbage collector Republic Services (RSG), security software maker Websense (WBSN), and publisher McGraw-Hill (MHP).

The San Francisco-based manager's fund, which has about $700 million in assets, has returned about 10% annually since its 1993 inception, four points better than the S&P 500.

Like many value managers these days, Osterweis currently has a large chunk of his portfolio -- about 23% -- in health-care stocks. But while he likes drugmaker Valeant Pharmaceuticals (VRX) and hospital chain Healthsouth (HLS), he says those are individual bets, not a sector play.

Nevertheless, the manager does look for some themes. One of his favorite types of investments is a turnaround story, or a company whose low operating margins belie its growth potential. That's why he bought shares of American Water Works (AWK), an underperforming utility that has undergone management changes. "With the shift, this company should start growing and get back on track," Osterweis says.

Another turnaround bet is consumer foods giant Unilever (UL), whose 12% profit margin is four points lower than rival Nestle's. "They're a company with strong brands and a national presence," says Osterweis. "They brought in a new CEO last year to get the company's margins on par with its competitors'."

While Osterweis has picked up some deep values this year, he has also boosted his cash position to 23% of his portfolio from 10%. He is skeptical about the strength of the economic recovery, which he thinks will be "anemic" by historical standards. He expects profit growth to be slow, and he's wary of banking stocks, having written in July to shareholders that bank balance sheets "remain suspect."

Osterweis says the continued deleveraging of the consumer and financial sectors will slow a rebound. "In an environment like that, stock market returns will be less robust than what we've seen in prior cycles," he says.

He does see one area of opportunity. "Getting total returns from dividends makes a lot of sense," says Osterweis. He prefers high-yielding stocks not only because they have stable returns, but also because they tend to belong to companies with better balance sheets.

In pursuit of dividends, Osterweis has bought shares of pipelines like Energy Transfer Equity (ETE, Fortune 500), a master limited partnership that has a 7.7% yield. He also added spirits maker Diageo (DEO), which has a 4.6% yield.

"We don't go whole hog into any one theme, but dividends will be prominent in what we doing going forward," he says.

Disclosure: The Div Guy owns shares of Unilever (UN) at the time of this post.

Here are the top 20 stocks in my Dividend Portfolio as of 9/30/09 ranked by size of holdings.

1. Kinder Morgan Energy (KMP) USA
2. Barclays PLC ADR (BCS) UK
3. DCP Midstream Partners (DPM) USA
4. HRPT Properties Trust (HRP) USA
5. General Electric Company (GE) USA
6. Johnson & Johnson (JNJ) USA
7. Procter & Gamble (PG) USA
8. American Capital (ACAS) USA
9. Penn West Energy Trust (PWE) Canada
10. Aircastle Limited (AYR) USA
11. Exxon Mobil Corporation (XOM) USA
12. Deutsche Bank (DB) Germany
13. Banco Santander (STD) Spain
14. Cooper Tire & Rubber (CTB) USA
15. GlaxoSmithKline (GSK) UK
16. Diana Shipping Inc. (DSX) Greece
17. ONEOK, Inc. (OKE) USA
18. Newell Rubbermaid Inc. (NWL) USA
19. Seagate Technology (STX) USA
20. Duke Energy Corporation (DUK) USA

Here are the top 10 holding of the Vanguard International Value Fund as of the end of 8/31/09.

1 Vodafone Group PLC
2 Sanofi-Aventis
3 Barclays PLC
4 Eni SpA
5 BP PLC
6 Nokia Oyj
7 E.On AG
8 Samsung Electronics Co., Ltd.
9 GlaxoSmithKline PLC
10 Novartis AG