4th Qtr 2017 : Dividend and Portfolio Update





Is time to see many update from financial bloggers  on their year- end portfolio review  and total dividend to be collected in 2017 , including B ( here ) and me of course.


Time flies , as usual with the last company to have announced the financial result , I will try to tabulate the total dividend to be collected in 4ht Qtr 2017 and total amount for full year 2017 vs 2016.

Dividend & Interest Income  for 4th Qtr 2017 = $40,576.95
This is about  $3696 lesser than  4th Qtr last year of $44,273

Total 2017 =  $185,623 vs 2016 of $195,547( down by -$9924 )






Quote “ SINGAPORE dividends are in for another tough year to the dismay of the legions of retiree investors; they also take some shine off the bull run in which the Straits Times Index has risen some 12 per cent since January.
Aggregate dividends (ordinary plus special) in 2017 will fall 3.6 per cent year on year (yoy) to S$16 billion from S$16.6 billion reported a year ago, said financial data provider IHS Markit. “ Unquote
Base on above , my dividend was down by 5.07 % vs market expectation of 3.6 % , main reason was due to most of the REITs and Telco are paying lesser dividend which contributing to about 67% of my total portfolio.

Also as mentioned in my previous update , I am moving more of my fund towards short term bond and cash ( total increased in 2017 vs 2016 = $66,509)  in view of high valuation in develop market , although the STI is just moving slightly above the long term mean and some said still consider " cheap " base on PE or PB valuation, but the world market , especially the developed markets were mostly in high side, remember “ When US ( or may be China ) sneezes , the world will catches cold “.

Moving and channeling more fund to bond and cash have also contributed to my lower dividend & Interest income in 2017.










Special THANKS to my reader “dpang”  ( see the comments here )for his assistance and helping me to automate the drawing part of SD line which really save me a lot of  time in drawing these lines manually.

Accordia Golf Trust posts 1st HF DPU drops 32.7% to 1.65 cts !! ( here )

As most of the investors who have vested in Accordia G Trust , this really caught me by surprise !! and try to find out more about the so called “ un-usual withdrawal of membership fees “ …
Since Accordia is one of my major or top holding in my portfolio and I’m expecting to get dividend of $7582 (if the DPU was same as last year ) , but instead will just get  $5106 as DPU was down so much due to this “un-expected “ high refund of membership fees .

Well , I think many investors still puzzle about how this happened and how it may affect the future pay out !


Famous financial blogger AK has shed some light on this issue on his blog post  ( here ).
I really hope this will be an “one-off & un-usual “ events as mentioned by management and the pay out will stabilize in coming quarters.


< Summary of Dividends in 4th Qtr 2017 >





Portfolio Update :



Not much changes in my portfolio composition since last quarter’s update.

Total stocks down by one to 45 due to privatization of CROESUS Retail Trust where I have blog about it (here ).

This quarter also seeing 3 right issues from CACHE / Capital COMM and  Manulife US REIT , I have subscripted all the right and apply for the excess right as well. Capital Comm was very generous that giving me all the excess right I have applied for ( 4368 units ) while CACHE was not so bad with 3800 units allocated vs 15400 applied for. Manulife was the less in term of excess right allocation with on 420 being given vs 12620 applied .

WOW !! so many right issue from REITs recently , you may recall the famous and highly debatable article from Ms The Hooi Leng  ” The REIT Myth Busted “ in 2011 with regards to Right issues and cash called from investing in REITs.

Well, it is very subjective to say if this is right or wrong , REIT is not like Bond and have component of “growth “ vs bond of just getting the coupon rate … one may need to take note of this and prepare for some cash buffer to meet such “ cash called from time to time.  100% investing in REIT for retiree who solely depending on dividend income to survive may not be a good idea , one may look at their own situation and adjust the % of REITs in their portfolio accordingly and not to be caught by surprised of these right issues.


Is the REIT Myth Busted? ( here ) , a  great summary and analysis of  good and bad of Right issue from propwise.sg

 

Any right issues may not be bad as long as it is good for shareholders , be it for business expansion or buying new property at right price … and not to issues right to pay dividend.

 


I have reduced my holding of Soilbuild REIT substaintially to 1.2% vs 4.3 % in previous quarter of my total portfolio as some of their O&G tenants in this REIT continue to struggle and facing uncertainty even with oil price hovering around USD60 per barrel.

FILING OF WRIT OF SUMMONS ( latest announcement of Soilbuild REIT in SGX – here )

Have also reduced my holding in Frasers Comm  from 6.4% to 2.8% in view of  the uncertainty facing by major tenant ( HP ) in Alexandra Technopark . Another famous financial blogger Kyith from InvestmentMoats have a good and detail analysis about the issue (here ). 

The price has since rebounced back to above $1.4 level after the subsequent  announcement from Frasers Comm as below .

“HPS ( Hewlett-Packard Singapore) has committed to extend the lease in respect of an aggregate of 266,905 sf of space, as follows:

i.                     93,195 sf for thirteen months commencing from 1 December 2017;
ii.                    42,561 sf for five months commencing from 1 December 2017; and
iii.                   131,149 sf for between two to three months commencing from 1 December 2017; based on terms which are substantially similar to those in the existing lease.”

Share price of Accordia GT dropped by almost 8% after the result announcement , my portfolio value was down by almost $17K at one point due to this and Accordia GT has dropped to 3rd place in my portfolio while Keppel Corp has moved up to top position due to recent run-up in share price. Share price of Keppel Corp was up by $1.1 as compared to my previous update and the total value has gone up by more than $33K.

Market seems keep rotating from industry to industry , from banks to property and O&G now …who will be the next to move ? Commodities (like Wilmar )? ComfortDelgro  or M1 ? I have no ideal nor crystal ball ,,, please do you own due diligent  and this is definitely not an advise to buy or sell..

Make sure you have a diversify portfolio and keep some war-chest “  in case there is sudden change in market direction … again remember When US ( or may be China ) sneezes , the world will catches cold “.


Cheers !!





“Generally, the greater the stigma or revulsion, the better the bargain.” By Seth Klarman

Comments

  1. Hi STE

    When you sneeze, I think the market will shake too.

    While down, still a big success to the year on your dividend income.

    ReplyDelete
    Replies
    1. Hi B,
      When I sneeze, only the small fly passing by will shake ! :-)
      BTW,, thanks and I took it compliment... hahaha.
      Yap... we hv different strategy, your portfolio return is much more than dividend as you are looking more on growth counters...for me as " retiree" ,,,dividend or cash flow is more important..
      All the best to you and your COSCO really " flying" now ,, it will increase your ROI a lot this year,,,👏🏽👏🏽👏🏽
      Cheers!!

      Delete
  2. Hi STE,

    185k of dividend income is very impressive too! It's time to prepare some medicine for an event of cold!

    ReplyDelete
    Replies
    1. Hi sleepydevil,
      Yes , you are right , need to always prepare for winter and some medicine for cold !!
      Cheers !!

      Delete
  3. Hi STE

    With the total of 185++K dividends collected, i didn't see your average yield or yield of individual counter, mind to share what is the average yield of your portfolio? Tks

    ReplyDelete
    Replies
    1. Hi 全自然,
      At current value , my average yield is 6.5%. Hope this clarify .
      Thanks

      Delete
    2. Hi STE

      Thanks for sharing. At current market, how is your allocation of portfolio in equities and cash/warchest in terms of percentage? I believe your warchest is your cash portion.

      Delete
    3. Hi 全自然,

      I am now with around 15% cash & short term bond and 85 % in Equity . I intend to increase my cash portion if market continue to moving up from current level.
      Hope this clarify.
      Cheers !! :-)

      Delete
  4. Hi STE

    Thanks for the mention. Really glad the solution helps save you precious time.

    Wow, your dividends this year is still very impressive.
    I'm in similar camp like u, more of aiming for dividend/cashflow. B's strategy of growing his capital has been very impressive also.

    Cheers

    ReplyDelete
    Replies
    1. Hi dpang88,

      Thanks for the comments , yah ! different ppl will have different strategies in different stage of investment cycles . Eventually all " All roads lead to Rome " so long as we don't do the foolish mistake like chasing for speculative stocks or buying base on " tips " ..
      Cheers !! :-)

      Delete
    2. Hi STE,

      Thanks for sharing.

      May I know what does the cash portion of 15% made up of? Does this include CPF OA and SRS account? What do you mean by short term bond? But I thought bonds still do fluctuate with market?

      Delete
    3. Hi WY,
      So sorry, I have overlook one of your question with regards to bond.
      FYI,, I bought the bond in different maturity date ,, ranging from 1-3 years, this is the way I stage my bond maturity date and get the cash flow in different years.. as you know , even when crisis hit,,, it will not goes to bottom direct,, it may take 1-2 years,,, Sonny doing this ,, i make sure that I will hv constant cash flow to buy during crisis...and with the hope to catch the bottom,, :)
      Yes, bond price do fluctuate ,,but if you hold till maturity date,, you will get the par value of $1 in most of the case... since I will hold it till mature ,, the price fluctuation doesn't bother me....the best is if you bought it at discount from par...
      Hope this clarify..
      Cheers

      Delete
  5. Hi STE, may i know if the 15% cash & short term bond includes CPF funds?

    Thanks
    WY

    ReplyDelete
    Replies
    1. Hi WY,

      Sorry for late reply , No , the 15% cash&short term bond does not include CPF funds.
      Hope this clarify.
      Cheers!!

      Delete
  6. Hi STE,

    I am new to REITS, can I check with you, the distribution of REITS consists of a taxable income component and a tax exempt component. Do we have to file the taxable income component to IRAS as income when we receive it? Thanks.

    ReplyDelete
    Replies
    1. Hi Teddy Bear,
      No need to file the dividend received from REITs to IRAS as all dividend income are tax exempted at individual level...
      Hope this clarify.
      Cheers ..😀😀

      Delete
  7. Hi STE, your returns are my DREAM.


    Cory

    ReplyDelete
    Replies
    1. Hi Cory,
      I am sure you will be able to achieve the level we have ( me and my wife ) sooner or later ...let the compounding effect took place slowly and steady , with patient.... and of course without making major mistake along the journey .. like too speculative in certain stocks or sectors...
      Cheers !! :)

      Delete
  8. Hi how many years have you been investing? Your portfolio size is at least $3m++?
    How much of it is savings?
    You are indeed my role model!

    ReplyDelete
    Replies
    1. Hi Alucard,
      Thanks for the comments , I have been in the market since 1995 ( almost 18 years ) , I don't really count how much of my portfolio amount came from saving , but overall profit + dividend were around 2.5 mil.. of course , we save a lot ( above average , i think ) during our working life ...you may find the detail in my blog " the power of saving".
      Hope this clarify.
      Cheers !!

      Delete
  9. Noticed you bought oxley and hyflux bonds, are you not afraid they may default especially their debt ratio is very high? Thought you prefer companies with less debt

    ReplyDelete
    Replies
    1. Hi Alucard ,
      Yes , most of the company I choose to invest was mainly have low debts and some forms of dividend, but for bond , since it will mature or redeem in 1-2 years time, I don't really care about their debts level , but of course , as you said , the risk of "default " shall increase with higher debts ratio...as for the Hyflux , Yes , I am nervous too , I bought the CPS base on assumption that it will be redeemed on Apr-2018 , but seems my assumption failed and the price dropped terribly , I am still positive that it will be redeemed in later stage and am happy to collect the 8% step up coupon subsequently.
      Of course in such situation, I will not increase my investment on this as this is not like stocks where sometime the price may just affected by market over-reaction, but at least , I am ok in taking such RISK base on my overall portfolio value.
      Hope this clarify.
      Cheers !!

      Delete
  10. Do you hold stocks for long at least 5 yrs and ride thru the ups and downs and crashes? Or do you take profit often and rotate to another stock?

    Just curious how does ur pprtfolio fare during the 08 crash?

    ReplyDelete
    Replies
    1. If I think the stocks is "right " to hold for or long term .. I will keep it for very long , more than 5 years of course , especially those I bought in crisis time .. where it was a real bargain... as I mentioned , my portfolio was in terrible "red " during crisis , but I added more good fundamental stocks.. during the crisis.

      Delete
  11. How you pick the stock to buy? Those oversold? On upward trend?

    ReplyDelete
    Replies
    1. Mainly oversold ,,, especially during crisis ,,I am more like a contrarian than those try to spot the next growth stocks ..

      Delete

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