Sunday, July 12, 2020

Dividend Warrior's 2Q2020 Net Worth Update - $800k New Milestone Achieved!

My personal liquid asset networth finally exceeded $800k for the first time in June 2020! Having a stable job that was largely unaffected by the COVID-19 pandemic was helpful for sure. It allows me to build up my warchest while deploying dividends on my stock portfolio. Besides, I have no debts to service. No housing loan. No car loan. Zero, zip, zlich, nada!

Nibbled DBS & UOB in Mar 2020
Nibbled UOB in Jun 2020

Furthermore, my job allows me to consistently contribute to my CPF account, thus building up my OA savings. The construction progress of my BTO flat has been held up a little by the 2-month circuit breaker in April-May. But I am assuming it is still on track to be completed by 1H2023.

Most local restaurants and eateries seemed to be doing brisk business since the Phase 2 re-opening. I was able to satisfy my Chinese soup dumplings craving at Paradise Dynasty! ^__^

Don't go through life. GROW through life.
Dividend Warrior

Tuesday, July 7, 2020

Dividend Warrior's 1H2020 Portfolio Update - Road To A Slow Recovery

Top 10 Positions as of 30 Jun 2020


Portfolio Cost: S$488, 490
Portfolio Market Value: S$ 606, 435
Portfolio Overall Unrealized Profit: S$117, 945 (+24.1%)
Portfolio YTD Returns: -1.75%
Dividends Collected (1H2020): S$12, 885
Current Warchest: S$52, 457

(*All figures are accurate as of 30 Jun 2020)

Portfolio Actions in 2Q2020:

  • Accumulated 200 shares of UOB at $20.76

Well-Prepared To Ride Out The Storm 
Like most businesses all over the world, banks faced serious COVID-19 headwinds during the first half of 2020 and would probably continue to do so in the coming quarters. Earnings projections should be lowered in 2020-2021 due to reduced NIM and negative loan growth. Overall business sentiment is expected to be poor for the rest of 2020. The saving grace would be the private wealth segment. I re-invested my dividends by accumulating UOB at $20.76, which is below its NAV of $22.32. UOB enjoys a larger revenue exposure to the ASEAN region compared to DBS and OCBC. Besides, I am happy with my current allocation on DBS and OCBC, so I decided to boost my long-term UOB position.  Investing in a quality company at a fair price is better than investing in an average company at an attractive price. Even if UOB cuts its FY2020 dividend payout from $1.30 per share to $1 per share, the yield is still fair in the current zero-rate environment. 

I know, I know..... it all seems kinda bland. Income investors in Singapore are not blessed with many solid dividend stocks. 'Banks + Blue-chip REITs' is pretty much the go-to formula, the 'bread-and-butter' combination. If it ain't broken, don't fix it. There is no need to constantly re-invent the wheel. I would rather stay within my circle of competence.

There is an increased probability that the local banks might re-activate their SCRIP dividend scheme in order to build up cash reserves for tougher times ahead. If that happens, I am more than happy to subscribe to new discounted bank shares. 

So, what did I do after Singapore's Phase 2 re-opening of the economy? Satisfy my hotpot craving of course! ^^

If you want to see the sunshine, you have to weather the storm
Dividend Warrior

Friday, June 5, 2020

Week Of Record Market Melt-Up - Swoosh Recovery Above $600k

Outperformed the STI by 12.72% YTD

Top 10 Holdings

Many readers asked me in the past why I focus big on banks and quality REITs since 2016. In my opinion, it is rather obvious that the local market's niche is banks and REITs. More traditional 'legacy' businesses were deteriorating or being disrupted. SMRT, NOL, Noble Group, SPH, Starhub, SingPost, SIA etc etc, you name it. The writing has been on the wall for quite some time. Sooner or later, well-run REITs should become big caps in the local market. Well, we are witnessing the transition now. The stubbornly-low interest rates since the 2009 GFC helped too. I am just staying ahead of the curve. Now, I am seeing more of my vested REITs becoming blue-chips on the STI. Keppel DC REIT could very well be the next prime candidate for inclusion to the STI by the end of 2020.

Inclusion of REITs to the Straits Times Index:
- Mapletree Commercial Trust on Sep 2019
- Mapletree Logistics Trust on Dec 2019
- Mapletree Industrial Trust on Jun 2020

Remember a particular camp of fear-mongers proclaiming the crash of REITs back in 2019 when the US Fed was hiking rates? Or the fearful majority predicting the end of the world back in March 2020? Oh, how the tide has turned! Followed my plan and accumulated more DBS and UOB shares in March, when the coronavirus fear was at its peak.

Time in market beats timing the market. Sit back, relax and ride the recovery wave up!