Thursday, December 22, 2011

Dec 2011 Singapore Dividend Portfolio Update

Merry Christmas Everyone! ^^

Average Price (S$)
% of Portfolio
Capitamall Trust
Suntec REIT
First REIT
Frasers Centrepoint Trust
CACHE Logistics Trust

Total dividends collected     
(since Jan 2010)
Total Invested Capital
Projected Annual Yield
6% - 7%
Dividends per month
Available funds for investment

  • Received a total of S$975 in December.
  1. SPH: S$850
  2. AIMS: S$125
  • Sold 2 lots of SPH before Ex-Date and took a little profit. From now onwards, I will only focus on dividend investing. Therefore, I will not include my realised/unrealised profits data on my blog.
  • Re-invest in more First REIT, AIMS and CMT, bringing the REIT allocation of my portfolio to about 50%.
  • Dividends per month increased from around S$400 to S$425.
  • Total invested capital increased to around 117k. Top 3 holdings are Starhub, SPH and Singtel, in that order.

Peace Out,
Dividend Warrior

Saturday, October 29, 2011

November 2011 Dividend Payment Dates

October has been a rather barren month for me :( 
I am so looking forward to a glut of dividends in November and December. Can do some Christmas shopping :)

Below are the dividend payment dates for the stocks I own.
1) Frasers CentrePoint Trust - 8 Nov
2) CACHE Logistics Trust - 29 Nov
3) CapitaMall Trust - 29 Nov
4) Suntec REIT - 29 Nov
5) First REIT - 29 Nov
6) Starhub - 30 Nov
7) SMRT - 30 Nov

*Just a quick update. I have initiated a small position in Coca Cola for my Global Dividend Growth Portfolio. The Christmas Holiday is coming! ^^

Peace Out,
Dividend Warrior

Saturday, October 22, 2011

In a recession, people still need to ...... brush their teeth

I have decided to start my Global Dividend Growth Portfolio with 3 core stocks. These core stocks will be integral to my dividend compounding strategy over the next 5 years. The first core stock will be Colgate-Palmolive. In a recession, people still need to brush their teeth.   
Colgate-Palmolive Company (Colgate) is a consumer products company. Colgate’s products are marketed in over 200 countries and territories. The Company manages its business in two product segments: Oral, Personal and Home Care, and Pet Nutrition. The Oral, Personal and Home Care segment is operated through four operating segments: North America, Latin America, Europe/South Pacific and Greater Asia/Africa, all of which sell to a variety of retail and wholesale customers and distributors. During the year ended December 31, 2010, the revenues of Oral, Personal and Home Care products accounted for 43%, 22% and 22%, respectively, of its total revenues. During 2010, the revenues of Pet Nutrition products accounted for 13% of the Company’s total revenues. 

Dividend Yield: 2.5%
Uninterrupted Dividend Payment: since 1895 (OMG! o_O)
Uninterrupted Yearly Dividend Increase: 48 years
Payout Ratio: 45%
5-year dividend growth rate: 12%
Net Profit Margin: 14.86%
P/E Ratio: 19.3
Beta: 0.46
Sector: Consumer Staples

You can view the Dividend History here.

I will be initiating a position in the next few weeks, depending on the outcome of the Euro Summit over the weekend.

Peace Out,
Dividend Warrior

Friday, October 7, 2011

Dividend Warrior Going Global?

Ever since I surpassed the 100K mark on my Singapore Dividend Portfolio, I have been contemplating about setting up another dividend portfolio consisting of US companies and global MNCs. Right now, I do not own any shares in a true-blue MNC. Singtel and F&N are the only blue chip stocks I have that provide regional exposure at best. My dividend portfolio is heavily dependent on the fortunes of Singapore and South-East Asia. I feel that it is time for me to venture beyond South-East Asia.

I will do a brief review on the various global dividend-paying MNCs I am currently monitoring. 

1. McDonald's Corporation:
McDonald’s Corporation franchises and operates McDonald’s restaurants in the global restaurant industry. These restaurants serve a varied, limited, value-priced menu in more than 100 countries around the world. All restaurants are operated either by it or by franchisees, including conventional franchisees under franchise arrangements, and foreign affiliated markets and developmental licensees under license agreements. The Company and its franchisees purchase food, packaging, equipment and other goods from various independent suppliers. It offers a range of products. Independently owned and operated distribution centers, approved by it, distribute products and supplies to McDonald’s restaurants. s menu includes hamburgers and cheeseburgers, Big Mac, Quarter Pounder with Cheese, Filet-O-Fish, several chicken sandwiches, Chicken McNuggets, Chicken Selects, Snack Wraps, french fries, salads, shakes, McFlurry desserts, sundaes, soft serve cones, pies and cookies.

  • Dividend Yield (2011): 3.2%
  • P/E Ratio: 17.6
  • EPS: US$4.95

2. Vodafone Group PLC:
Vodafone Group Plc (Vodafone) is a mobile communications company operating across the globe providing a range of communications services. The Company offers a range of products and services, including voice, messaging, data and fixed-line solutions and devices to assist customers in meeting their total communications needs. Vodafone has a global presence, with equity interests in over 30 countries and over 40 partner markets worldwide. It operates in three geographic regions: Europe, Africa and Central Europe; Asia Pacific, and the Middle East, and has an investment in Verizon Wireless in the United States. In October 2010, Vodafone Global Enterprise, the business within Vodafone, announced the acquisition of two telecom expense management (TEM) companies, Quickcomm and TnT Expense Management.

  • Dividend Yield (2011): 5.6%
  • P/E Ratio: 11.4
  • EPS: US$2.33

3. Johnson & Johnson:

Johnson & Johnson is a holding company. The Company and its subsidiaries are engaged in the research and development, manufacture and sale of a range of products in the health care field. It has more than 250 operating companies conducting business worldwide. The Company’s operating companies are organized into three business segments: Consumer, Pharmaceutical and Medical Devices and Diagnostics. The Company and its subsidiaries operate 139 manufacturing facilities occupying approximately 21.8 million square feet of floor space. Within the United States, 7 facilities are used by the Consumer segment, 11 by the Pharmaceutical segment and 36 by the Medical Devices and Diagnostics segment.
  • Dividend Yield (2011): 3.6%
  • P/E Ratio: 15
  • EPS: US$4.18

4. 3M Company:
3M Company (3M) is a diversified technology company with a presence in industrial and transportation; health care; display and graphics; consumer and office; safety, security and protection services, and electro and communications. 3M manages its operations in six operating business segments: industrial and transportation; health care; display and graphics; consumer and office; safety, security and protection services, and electro and communications. 3M products are sold through numerous distribution channels, including directly to users and through numerous wholesalers, retailers, jobbers, distributors and dealers in a variety of trades in many countries. In February 2011, 3M (industrial and transportation business) announced that it completed its acquisition of the tape-related assets of Alpha Beta Enterprise Co. Ltd. In February 2011, it acquired Hybrivet Systems Inc. In April 2011, it acquired Original Wraps Inc. In July 2011, it acquired Advanced Chemistry & Technology Inc.
  • Dividend Yield (2011): 3.1%
  • P/E Ratio: 12.7
  • EPS: US$5.89

5. AT&T Inc.

AT&T Inc. is a holding company. The Company is a provider of telecommunications services in the United States and worldwide. These include wireless communications, local exchange services, long-distance services, data/broadband and Internet services, video services, managed networking, wholesale services and directory advertising and publishing. It operates in four segments: wireless, which provides both wireless voice and data communications services across the United States and, through roaming agreements, in foreign countries; wireline, which provides landline voice and data communication services, AT&T U-Verse TV, broadband and voice services (U-Verse) and managed networking to business customers; advertising solutions, which publishes Yellow and White Pages directories and sells directory advertising and Internet-based advertising and local search, and other, which provides results from customer information services and all corporate and other operations.
  • Dividend Yield (2011): 6.1%
  • P/E Ratio: 8.6
  • EPS: US$3.30

6. Coca Cola:
The Coca-Cola Company is a non-alcoholic beverage company. The Company owns or licenses and markets more than 500 non-alcoholic beverage brands, primarily sparkling beverages but also a variety of still beverages such as waters, enhanced waters, juices and juice drinks, ready-to-drink teas and coffees, and energy and sports drinks. It also owns and markets non-alcoholic sparkling beverage brands, including Diet Coke, Fanta and Sprite. It manufactures, markets and sells, beverage concentrates, referred to as beverage bases, and syrups, including fountain syrups (the concentrate business or concentrate operations), and finished sparkling and still beverages (finished products business or finished products operations).It operates in six segments: Eurasia and Africa, Europe, Latin America, North America, Pacific, Bottling Investments and Corporate. On October 2, 2010, it acquired the North American business of Coca-Cola Enterprises Inc. (CCE).
  • Dividend Yield (2011): 2.8%
  • P/E Ratio: 12.2
  • EPS: US$5.35

Do you think I should venture out and start another dividend portfolio on global MNCs? If you are forced to choose just one MNC from the above list, which one will you choose? Comment below. ^^

Peace Out,
Dividend Warrior

Saturday, September 17, 2011

Do you really love money?

I do not love money. There. I said it. 

All of you must be thinking that Dividend Warrior has lost it. How can someone not love money? o_O

Dun worry. I am still sane. My Dad's recent medical crisis sparked off some thoughts in me. I do not want to work until my 60s when I will be too old to pursue my dreams and interests. At the end of the day, a job is just a job. There is no reason for me to slog and sacrifice my youth over a "job". 

Cash is just paper. I do not love it. This paper has value because the government says so. Instead, I crave for the two most valuable things money can provide me. No, not super cars, private jets, condos etc.  Money can provide me freedom and time. I am craving to have the freedom and time to do whatever I want, wherever I want, whenever I want. 

All the Freedom and Time in the world!
Hopefully, my dividend re-investment plan will help me gain more freedom and time by the time I reach mid-thirties. 

Feel free to comment below. ^^

Peace Out
Dividend Warrior

Saturday, September 10, 2011

My First Cheque from Nuffnang!

Yesterday, I received a cheque from Nuffnang. Even though the amount is small, I still feel a sense of satisfaction because I had put in quite a lot of effort and time into my blog. After eight months of blogging (from Nov 2010 to Jun 2011), I earned S$51.06 as shown in the cheque. In other words, I earned about S$6.40 per month from my blog. I hope to eventually achieve S$10 per month.

Next, I will like to thank Nuffnang for their efficiency. Their staff actually called me to confirm my name and address before sending the cheque. Wow! I did not expect that. 

Finally, I will like to thank all my readers for the support and encouragement. Thank you all for visiting my blog. ^^ 

Peace Out,
Dividend Warrior

Sunday, September 4, 2011

The Magic of Compounding Dividend

In the past, I would spend my dividends on food, clothing and entertainment. My initial investment aim is to create a dividend portfolio that generates enough passive income to cover my daily expenses while preserving my capital. However, a fellow financial blogger advise me to re-invest more of my dividends. Therefore, I have moved towards a new investment aim.

"To generate enough passive income to live off on and still have money left for investment. Make my money work harder for me."

Compound Dividends:
In order to fulfill my investment aim. I decided to use the power of compounding as Albert Einstein once said that it is the most powerful force on Earth. If you think the effect of compound interest is great, then compound dividends is like "compound interest on steroids". Without further ado, I shall share 2 compound dividends plans below.

Version 1:

Year Capital (S$) Capital + Dividends (S$) Dividends (S$)
2012 107,000 114,490 7,490
2013 114,490 122,504 8,014
2014 122,504 131,080 8,575
2015 131,080 140,255 9,176
2016 140,255 150,073 9,818
2017 150,073 160,578 10,505
2018 160,578 171,819 11,240
2019 171,819 183,846 12,027
2020 183,846 196,715 12,869

*Calculations are done based on an annual dividend yield of 7%.

Version 1 is a pure dividend re-investment plan. I will only use the dividends received every year to re-invest in dividend stocks. I do not need to fork out a single cent from my pockets. Therefore I can maintain a larger cash buffer. However, this process is rather slow. I will only reach S$12K in annual passive income at 36 years old!  

Version 2:

Year Capital (S$) Capital + Dividends (S$) Dividends + Capital Injections (S$)
2012 107000 122000 15000
2013 122000 137000 15000
2014 137000 152000 15000
2015 152000 167000 15000
2016 167000 182000 15000

*Calculations are done based on an annual dividend yield of 7% plus capital injections.

Version 2 is an accelerated form of the first. I will combine the dividends received with my own funds in order to reach S$15K for re-investment. This will speed up the compounding effect. By the end of 2016, I will achieve a dividend portfolio size of S$180K, at an age of 33 years old. However, this version requires me to be more disciplined in my spending and more aggressive in my savings. Secondly, I will have a smaller cash buffer. 

Version 1 is slow but safe. Version 2 is faster but riskier. I am leaning slightly towards Version 2 because I do not own a car or property, therefore no loans and mortgages to service. I believe I am not a spendthrift either. Therefore, spare cash will be available for investment. Of course, another way is to find higher yielding stocks. However, it is difficult to find blue chips that are yielding consistently above 7%, except Starhub. 

So, if you are in my shoes, which version will you choose? Or you have a better plan than my ones? Please comment below. ^^

Peace Out,
Dividend Warrior

Sunday, August 21, 2011

Gold Panda Coin - Bling Bling to the max!

I finally collected my 1 oz Gold Panda coin from the Singapore Mint branch in Orchard Central 2 weeks ago. Before I show the awesome pictures, I will like to share my thoughts on gold.

Reasons to invest in gold:
  • The US is hovering near to a default. I know they managed to raise the debt ceiling this year (at the last freakin possible second!). But what about next year? And the year after next? The "debt ceiling debate" will rear its ugly head next year. Sadly, the America has a rather heavy debt burden. Some people say, technically, USA will not go bankrupt because they can print as much money as they need. However, this will further devalue the US dollar, leading to global inflation since most commodities are priced in US dollars.
  • The European nations are facing their own debt crisis too. Greece, Ireland and Portugal are old news. In fact, Greece is proof that whatever the EU did last summer, is not working. The focus now is on the supposedly stronger countries like Italy, Spain, France and even Germany! Looks like the dreaded domino effect is taking place. The debt contagion is spreading slowly but surely. Even if the government somehow managed to avert the crisis this year (which I think they won't), I am positive this debt fiasco will blow up again next summer in 2012. The riots in London just shows how deep the social malaise is in Europe. Youth unemployment is getting ridiculously high.
  • Basically, the Western World is "kicking the can down the road". This will not end well.
  • Volatile markets are pushing more investors worldwide to buy bonds and gold. Even central banks around the world are stockpiling gold reserves. The demand is strong. 
Alright then, enough with the financial jargon talk. It's time for some pictures!

Front: Mama Panda with Baby Panda living happily in the bamboo forest. ^^
Pandas are a prized national emblem, being uniquely native to China. 
History also associates them as royal pets of emperors. 
Back: The Prayer Hall for Good Harvests at the Temple of Heaven. This magnificent 15th century landmark in Beijing is also a UNESCO World Heritage Site.

In conclusion, I feel that in this uncertain and volatile world today, it is prudent to have a little gold in your portfolio. Of course, do not start selling your stocks and dump all your money into gold. Experts advise having 5% - 10% of one's portfolio in gold. Right now, my gold holdings is close to 5% of my portfolio. It is a comfortable allocation for me. But if gold is not the thing for you, it is fine. Just enjoy the pictures! ^^

Feel Free to leave your comments below!

Peace Out,
Dividends Warrior

Wednesday, July 20, 2011

Always have a Plan B

I watched "Transformers: Dark of the Moon" yesterday. It was great. Transformers are my childhood heroes. ^^

SPOILER ALERT! Do not read on if you intend to catch the movie.

After my time in the army, I learnt to always have a Plan B ready. My sergeant will always ask me "Soldier, what's the wet weather plan?" I also applied this thinking on my financial planning too. My Plan A is to build a normal career, working a 9 to 5 job diligently. However, if something drastic (retrenchment/ pay cut/ mid-life crisis/ health problems) happens, I also have a plan B to fall back on. My Dividend Portfolio serves as my Plan B, my wet weather plan, by providing me with a steady stream of passive income.

So, while I was watching the Transformers movie, I love the scene where the Autobots escaped from the space shuttle/rocket unscathed. They have a Plan B! They built an escape pod in the first-stage booster rocket so that they could escape the exploding main rocket before Starscream fired the missiles at them.

After watching the movie, I had my lunch at Wendy's. Gonna share some mouth-watering pictures that I took with my phone's camera. Hee ^^

I ordered the Spicy Chicken Burger set meal. The meat patty is more tender and juicier than KFC's Zinger burger.  The bun is softer. Not overly spicy.  Overall, I prefer this over the Zinger. The fries are great too! Crispy on the outside and soft inside.
I ordered the Grilled Chicken Caesar Salad. The serving is huge! The bowl of salad can serve a meal by itself!. Luckily, I have my friend to share it with me, otherwise, I could not finish it on my own.

My friend ordered the Fried Chicken set. He said it is too salty.

So, what's your Plan B? Or maybe you even have a Plan C? Share your comments below. ^^

Peace Out,
Dividends Warrior


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