2nd Qtr 2019 : Dividend & Portfolio Update

image credit to Izquotes.com

Finally, is my turn to update the total dividend and interest income that I will be getting in 2^nd Qtr 2019 , after my last company i.e Accordia Golf Trust announcing its result yesterday. I’m really excited because second quarter is normally the highest dividend amount I will get as most of the blue chips are given out their dividend in this quarter.

Total Dividend & Interest Income 2^nd Qtr 2019 = $59,007 vs 2^nd Qtr 2018 ($60,325), decrease by -$1318.

Total 1^st Half 2019 = $96,211 vs 1^st Half 2018 ($94,108) , up by $2103 , but excluding the $4770 ( Special dividend from Chuan Hup Holding ) , it will be lesser by -$2667 vs 1st HF 2018, which is also kind of expected as I am diverting more fund to corporate bond/SG Saving Bond/Bond ETF.  For this quarter, the total interest receive from bond will be $5997.99.

Portfolio Update :

YTD Portfolio Return (including dividend) : +10.12% vs STI ( exclude dividend) : +2.81%

** STI is having TTM yield of 3.5% , so my portfolio is only outperform STI by around 3.81% (including dividend). Not bad at all , due to better performance from REITs in 2019 and of course higher dividend yield from REITs.

Total stocks in my portfolio reduce by 3 to 43 as I sold 6 stocks and added another 3 new one during 2^nd Qtr 2019.

Top 5 position almost same as previous update except fifth position where  ComfortDelgro been replaced by Kep-KBS Reit. I sold 13,000 of ComfortDelgro at $2.69 in April which reduced the % in my portfolio from 4.1% to 2.6%.

I have blogged about decision to sell Lippo Mall Reit / OUE Comm REIT and China Aviation Oil ( here ) ,hence I will not elaborate more.

Sold : Dasin Retail Trust

Unlike Capital Retail China , the other two China retail Reits i.e Dasin and BHG retail Reit are having some sort of “ financial engineering “ to push up the dividend yield during IPO. There is kind of “waiver” on dividend from major shareholders/ sponsors at initial stage for about few years.  

For the case of Dasin Retail Reit, there will be around 55 mil units from sponsor which will be entitled to receive dividend in 2020, this additional units will definitely dilute the DPU to some extent if the increase in rental income does not have the same magnitude to off-set the reduce in DPU.  I decided to take profit and not to wait till 2020 and I’m really happy with 11% XIRR in 1+ year of investing in Dasin Retail REIT.

Further reading:

3 Key Risks for Dasin Retail Trust <from www.fool.sg>

Sold : Chuan Hup Holding

I am also happy on my investment in Chuan Hup Holding for about a year with 20% returns including the 9 cts special dividend after divesting PCI. I have decided to let go Chuan Hup since there is no clear direction on what will be next “core/driven” business units after selling PCI. Their off-shore business seems struggling and I’m not sure if their property section will perform well, although their balance still solid. By the way, thank you Chuan Hup for the 18% XIRR returns.

Sold: Design Studio

I have decided to get rid of one of the “biggest lemon” in my portfolio. :D , I have blogged about “lemon “ here . Well, it used to be a “glamour “ dividend stock loved by dividend income investors but fallen since 2018.

Without knowing the challenges of their underlying business, I keep averaging down this counter and the result turned out to be really bad. No signs of improvement in their business and cost overrun in most of their projects really kill them.

This will be the second highest lost I ever have after written off Hyflux totally at (-$127K). Good lesson learned from investing in Small/Mid cap company which is much more volatile and risky ( of course , high risk high return and high chance of getting “lemon”). I will try to cap my exposure to any single small-mid cap counter at $50K from now onward. My “Overconfidence “ killed me in this case …

I still have few “lemons” in my portfolio and hopefully the 3 counters added recently will not turn out to be another lemon eventually.  :D

Cheers !!

The portfolio breakdown by sectors almost unchanged from previous quarter with around 70% in income generating sectors ( i.e REITs & Business Trust/ Bank / Telcos).

Dividend income provide me with consistent cash flow to pay for my monthly expenses, re-investing or saving as war-chest.

In my next blog post , I would like to talk about the importance of cash flow, be it in personal financial planning or corporate level .. look at how much cash / cash equivalent amount Warren Buffett ‘s Berkshire Hathaway have …. Yup, a whopping  $114 Billion and you will know who will be the real winner when next crisis hit. Stay tuned .

Warren Buffett wants to make an 'elephant'-sized acquisition <from cnn.com>

## Berkhshire Hathaway is having close to 35% of cash ratio , which is much higher than 40 years average of 16% . Only two times BRK's are having such high cash ratio , the other one was in years before GFC. ( 2004-2008 , average 33% )

If you are in “wealth accumulation” stage, you should be very happy to see the price drop due to tensions created by “trade war” , one may expect more volatile and bumpy market ahead as trade war may escalate further since both side seems not backing down soon. A "full blown" of trade war may cause a systematic risk   systemic risk and turn the market upside down , If that happens, I am also happy to deploy my war-chest as well….remember , “Price is what you Pay and Value is what you Get”.

Quote Of The Day :

 “Never take your eyes off the cash flow because it’s the lifeblood of business.”
—Sir Richard Branson,