1st Qtr 2019 : Dividend and Portfolio Update




Time flies , 1st quarter 2019 just passed in the blink of an eye , I am sure most of us have good return on your investment as STI has achieved +4.9% returns YTD.

My portfolio managed to outperform STI with returns of 9.7% YTD , thanks to most of the REITs and some other counters like Global Investment and Comfort DelGro.



 Top-10 Holding



Top-10 YTD Return




Portfolio as 1-Mar 2019



Total holding reduced by one to 46 with 4- Out and 3- In since last update. I hope to reduce my total holding to 40 counters by end of this year as to reduce those counters with less than 1% to overall portfolio value.

I am now a property agent as I have added PropNex after APAC Realty into my latest holding...:D  , both companies combined controlling more than 50% of Singapore real estate agencies market share. I am not sure when the property cooling measure will end but I guess people will still buy and sell property although the transaction volume will be lower than the past. From their latest result, the business environment still very challenging and not expect to recovery anytime soon unless some or part of the cooling measures been removed.

I have also added Cromwell REIT in December 2018 when the price had been beaten down after the right issues announcement, same as Kep-KBS REIT , sometimes is good to bet on huge correction after the right issues , especially for REITs where you still have margin of safety by collecting dividend and buying at lower price after right issues, except for OUE-Comm REIT where the price keep dropping and didn’t recover till now.

So, which counter will be the next to announce right issue ? First REIT ? hahaha…I don't have the crystal ball to tell but just spare some cash and wait for the opportunities …

My blog about REIT's right issue (here )….For investing in REITs for income, we have to accept the reality that right issue is part and partial of REITs investment. If you can't avoid it , deal with it…


Stocks I have sold …


M1


Sold my last batch of M1 at $2.1 in November 2019 which end my investment in M1 with total loss of -$14,226 ( including dividend ). Don’t underestimate the price war once there is new entrant to oligopoly market. I have blog about my investment in M1 and regulatory risk (here ).


KSH



I have decided to take profit on this counter as the holding is small and not bad at all with XIRR of 15% in two years.


Mapletree Comm


CDL-H Trust







I have to sell these two REITs as I wanted to maintain the % of REITs in my portfolio to below 50% since I bought more Capital Retail China and added Cromwell REIT into my portfolio in last quarter.

Both counter had given me good returns especially Mapletree Commercial REIT which I hold it since 2011.  I know both also have strong sponsors and good quality assets although the valuation is on high side , in term of yield. I will definitely consider to add these two counters in future if opportunities rise.


Dividend Update :


Total dividend and interest to be collected in 1st Qtr 2019 = $37,038

** which is about 9.6% higher than same period in 2018.

1st Qtr is normally “low season” for my dividend income as most of the blue chips will only announce their result in 1st Quarter and pay out in next quarter. I hope to maintain my second quarter dividend income same as last year at above $60K level.





Cheers ! 






But always remember that not all “dividend are created equal “ , beware of some of the Value Trap “


Do rising interest rates matter to dividend-paying stocks?

This is the question I often been asked as dividend income investor and my answer is yes or no. Rising interest rate means economy is good and central is expecting some kind of inflation. Some business like finance and banks will be benefited in rising interest environment and some might be able to pass the cost to consumer like alcoholic beverages. While some might be affected due to higher interest cost on loan or CAPEX like REIT / Property developer or even Telco....but even among the REITs , if those are in good location and high demand sectors , it might still enjoy a positive rental reversion to mitigate the cost of rising interest rate. 

The key is to have a more diversify portfolio ...when interest rate may have different impact on different sectors." You gain some , you lose some "


STE's Portfolio Breakdown by Sectors:









“We have almost certainly not conquered the business cycle. We may not even have tamed it.” By Philip Fisher

Comments

  1. Hi Sim

    It's a good quarter for you and the dividends you are receiving is the icing on the cake.

    Wishing you a bumper year this pig year.

    ReplyDelete
    Replies
    1. Hi B,
      Thanks for the comments, guess most of investors who have REITs in their portfolio also performing well in 1st Qtr 2019. Congrats ! for the gain on your divestment of FLT recently...please share more "kangtao" once you find another 6%+ capital gain counter to invest... Yah, let's hope for better " pig year " or all of us...!!
      Cheers !! :D

      Delete
  2. Great stuffs ...Your article inspire me on dividend investment

    ReplyDelete
    Replies
    1. Hi GlobalPassiveIncome,
      Thanks for the comments , your annual dividend income of more than $62K is great achievement as well !! Bravo!! Hope you will reach your target of $100K p.a soon.. let money work harder for us... hahaha :D
      Cheers !!

      Delete
  3. STE,

    Amazing portfolio ... how much in cash are you at the moment?

    ReplyDelete
    Replies
    1. Hi Yaruzi,
      I am not as bearish as some other bloggers who are having 40-60% of cash since I need the income to survive (cover my expenses). But always keep some cash + cash like ( SG Bond , Corporate bond which will mature in next 2-3 years, Bond ETF ) , of course my last round of bullet will be " CPFIS OA " ...
      AS of now , STI is just moving along the long term mean , i will try just to keep around 15% in cash+bond, once the index move higher and closer to +1SD , I will sell and keep more cash. I will use some of my quarterly dividends to invest from time to time ( short term trading ) else I may just keep the dividend in cash or bond.
      Hope this clarify and you may refer to my previous post on how I will deploy my war chest when Mr Market is in bad mood ... :D
      Cheers !!

      Delete
  4. Wah man. When can I hit your dividend level ... very nice returns for this 2 months !

    ReplyDelete
    Replies
    1. Hi Cory,
      Thanks for the comments, I am sure with the ROI and compounding effect on dividend you are collecting now, very soon you will be able to achieve my level of dividend.
      Guess if anyone who have more REIT in his/her portfolio , the overall returns should outperform STI ..
      Still have 8+ months to go, hope will be able to continue with such return till end of the year..
      Hahaha ,, Cheers !! :D

      Delete

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