Friday, November 12, 2010

Loaded UOB KayHian, First Ship Lease and K-Green Trust

Yesterday, I increased my holdings in UOB KayHian, First Ship Lease (FSL) and K-Green Trust (KGT).
Besides the market showing some weakness, these are my other reasons for loading the 3 stocks.

UOB KayHian (Financials):
I have always wanted to have a "financials" stock in my portfolio. However, I am not rich enough to buy DBS, UOB and OCBC ( Should have bought during the 2008 financial crisis -__-" UrgHHH!)

UOB KayHian fits the bill because 1) the company has been paying regular, reasonable dividends over many years. 2) the company has UOB as support. 3) I can afford the stock :)

I think this stock still has quite a lot of upside potential. I loaded 2 more lots of UOB KayHian at $1.75
I am trying to diversify my REIT-heavy and blue-chip heavy portfolio.

You can check out their dividends history on the SGX website

FSL (Shipping):
I loaded 3 more lots of FSL at $0.45 because 1) the 10% yield it offers is still pretty attractive. 2) the DPU will probably increase in the future as the 2 arrested ships get leased out.

KGT (Utilities):
I loaded 2 more lots of KGT at $1.08 because 1) based on the projected DPU for 2011, the yield will be around 7%, which is reasonable for me. 2) KGT is in the business of energy-generating (Power stations), water treatment (Newater) and Green technologies. 3) the company has a strong parent in the form of Keppel Corp.

During the most severe economic crisis, Singaporeans still need energy from Power Stations to supply electricity to their homes. The Power Plant at Tuas (above) uses the most advance "Waste-to-Energy" techniques to generate electricity.

During the most severe economic crisis, Singaporeans still need to drink, shower and even flush the toilet bowl. The Newater Plant at Ulu Pandan (above) is the biggest and latest yet in Singapore.

The Singapore government will not shut down the power stations and Newater plant. Furthermore, Singapore is country that face the problem of water scarcity. Therefore, the government will most definitely do business with KGT in the long-term.

You can check out KGT's prospectus on the SGX website

So, that's my latest foray into the stock market in order to diversify and boost my dividends portfolio.

Please let me know your thoughts by commenting below.

Peace out :)


JW said...

I looked at Kayhian at 80c. I had no money then, so can't buy.

At $1.50, I thought it was too expensive although I had the money. Was looking at Kim Eng too.

Till now, both had risen, and I still have not bought them :x

Can share why you buy Kay Hian now?

Dividend Tech Warrior said...

Hi JW,

Thanks for dropping a comment.

I can understand how you feel. Sometimes, I also keep delaying to enter into a particular stock. And bcos of my hesitation, the price oredi shot up alot.

I bought UOB KayHian bcos

1) I am trying to diversify my dividend portfolio with a financial/banking company. DBS, UOB and OCBC are too expensive for me.

2) I checked UOB KayHian dividend history. Very consistent and regular. Furthermore, it has UOB as support.

3) UOB KayHian is one of the biggest brokerage firm and investment bank in the region. So, I assume it should have quite a lot of clients in Asia. And since Asia is going to lead the world economy in the future, I hope to ride on that wave.

Anonymous said...

your portfolio sux...

Dividend Tech Warrior said...

Hi Anonymous,

I know I have a lousy portfolio. All the best in your investment journey :)

Anonymous said...

Hi dividends warrior. Pardon my doubts, buy you might want to check out what this blog's comments have to say about these self-liquidating trusts (including FSLT)

K Green will have to keep increasing its assets to avoid its NAV being eaten down to zero due to its payout.

Having seen the devastation of FSLT, I would probably not touch this trust.