Saturday, October 5, 2019

Dividend Warrior's 9M2019 Portfolio Quick Update - $600k Milestone Achieved!

Is it just me, or is the world getting crazier out there? Donald Trump facing impeachment, Boris muddling towards Bexit, violent rioters getting shot in Hong Kong, political tensions escalating between Japan & South Korea. Oh, don't forget about a teenager lecturing full-grown adults at the United Nations on the subject of global warming and the eventual mass extinction of humans. Meanwhile, fires in the Amazon forest raged on, sending more greenhouse gases into the atmosphere. On the economic front, manufacturing figures and factory output from nations such as China, Germany and Japan continue to trend down. FedEx earnings & sales missed market expectations. HP planning to cut up to 9,000 jobs worldwideSeptember automobile sales dropped in the US. President Trump slapped 25% tariffs on various European goods & products. I'm not holding my breath for a successful trade deal between the US and China anytime soon. It's gonna drag on for sure.

It seems the only group of people who still care about the global economy and took decisive actions were the central banks. The US Federal Reserve and European Central Bank cut rates in the third quarter. Following the footsteps of Japan, bond yields in Europe have gone negative too. Slowing growth, stubbornly low inflation and lack of real wage growth in the developed nations. That's the state of the world right now. There is no alternative (TINA) but to hunt for higher yields in REITs and dividend stocks. Assets which are generating stable cashflow are in demand. There is no way the central banks can afford to hike rates and risk a global recession. Interest rates are never going back to the previous high of 5%, not in the near future anyway. Luckily, Singapore is a leading REITs hub in Asia. We should capitalise on this niche advantage.

Top 15 Core Holdings (As of 30 Sep 2019)

Portfolio Cost: S$458, 587
Portfolio Market Value: S$604, 955
Portfolio Overall Unrealized Profit: S$146, 368
Dividends Collected (9M2019): S$19, 210
Current Warchest: S$8, 000

Portfolio Actions in 3Q2019:
  • Initiated small position in Hong Kong Land
  • Averaged down on Propnex, which overtook Suntec REIT as my 15th largest core holding
  • Applied 2000 units for Keppel DC REIT preferential offering

Wednesday, September 4, 2019

How Dividend Warrior Transformed His Portfolio In 2016 Bear Market?

Low Interest Rates Are Here To Stay
My portfolio tends to evolve after every deep market correction as I find ways to improve on it. During the last serious bear market in 2016, I divested those weaker, 2nd-tier REITs such as AIMS AMP, First REIT and Cache Logistics. The raging oil price crisis in 2016 gave investors the perfect opportunity to go big into top-tier REITs as well as the 3 local banks because their valuations were rather beaten down. Too much irrational fear over the banks' NPL exposure from the O&G sector back in those days. 

So, I made the transition, believing that I would reap solid returns in the future as it is almost impossible for the US Fed to hike rates up to 3%. Forward-looking is important. Thanks to my lucky stars, my bold decision was proven right as the market rallied beautifully in 2017. By the end of 2017, my portfolio transformation was pretty much complete, a combination of banks and quality REITs. Dividends and growth.

Remarkably, those top-tier REITs with strong competent sponsors like Mapletree, Frasers, CapitaLand, Ascendas and Keppel kept growing their DPU and the 3 local banks had since increased their dividend payouts. Even today, all the Mapletree REITs remain resilient in the face of escalating US-China trade war, hard Brexit and increasingly violent Hong Kong riots. I intend to repeat this formula shall the market experience such a steep decline again.

If you are interested, you can check out how my portfolio evolved in 2016 over here and here. Got picture got talk, right? Hahaha! ^__^

"To improve is to change, so to be perfect is to have changed often." 
~ Winston Churchill 

Sunday, September 1, 2019

Dividend Warrior's YTD Portfolio Performance Snapshot

Everyday, most people have to get up early, get squeezed like sardines on the MRT trains/public buses as they travel to their workplace. They then work non-stop like a machine for half a day, impress their bosses and receive a salary at the end of each month. Lots of people are forcing themselves to do this daily even though they dread it. Why? Well, they need money to support themselves and their families, to fulfill their needs and wants in life. The more needs and wants a person desires, the more income he has to earn. This income earned through effort and time is called 'active income'. Sometimes, the job can be so strenuous that you not only sacrifice time but also your health. You might even wonder if your salary is worth all that sacrifice. Financial independence is being able to receive income without having to sacrifice time, health or anything else that might be precious to you. This is the progress I have made so far in my journey towards 'FIRE'. 

Portfolio Market Value: S$597,228
Projected Dividends in 2020: S$28.6K
Cash warchest: S$10,160
Gold coins: S$3,000
CPF OA: S$131,000 (*Shall be used to fully pay for BTO flat)
Total Networth: S$741,388 (At 30 Aug)

Top 12 Core Holdings