Friday, March 18, 2011

Cleaning Up My Dividends Portfolio

February and March have been terrible for most investors. After the Chinese New Year holidays, everything went downhill.
  • Cooling measures in China
  • Property-cooling measures in Singapore
  • Turmoil in the Middle East 
  • Inflation fears (worsening into stagflation)
  • Natural disasters - Australia floods, New Zealand earthquake and Japan earthquake/tsunami/radioactive contamination/volcanic eruption
  • Downgrading of Spain and Portugal



Even though my dividends portfolio contain resilient blue-chips like SPH, Starhub, SingTel and Singpost, I am still rather concerned because the nuclear plant crisis can worsen very quickly. Japan is the world's 3rd largest economy. Many global corporations have business dealings with Japan in one way of another. If this turns out to be another Chernobyl, Japan's economy will be severely affected and so will Asia. 




Stocking up on Blue-chips:
My dividends portfolio is still in the black after all the recent dreadful events. This proves that my overall portfolio is resilient enough to withstand reasonable amounts of continuous shocks. At first, I wanted to be passive and stay on the sidelines. However, I remember Warren Buffett's famous words "When others are fearful, you should be greedy. When others are greedy, you should be fearful". One of my fellow CNA forum members named ThreeCents has an investment rule, "For a wonderful company, be delighted when its stock price falls, be regretful when its stock price rises."
A few blue-chips are approaching attractive prices. Therefore, I decided to ignore my initial fears and do a major clean-up of my portfolio. I cut loss for K-Green Trust, CitySpring, FSL. I then took profit for EpiCentre and PLife REIT. Next, I re-directed the fresh funds into more lots of SingTel and F & N. I will also accumulate more SPH shares if the price approaches $3.70


This major clean-up will further fortify my dividends portfolio against future shocks. You might want to do a consolidation of your portfolio too.


Finally, I pray that all my Japanese readers are safe and sound. Japan will emerge from this crisis stronger, just like my portfolio. ^^








Peace out,
Dividends Warrior

7 comments:

Anonymous said...

Very good analysis. You speak the words out of my mouth. I also accumulated more singtel and SPH after conquering my fear during past week.

Ken Tan said...

Nice post! I also hope Japan will recover well.

And yes, agree during such market situation is a time to buy in more to accumulate shares and grow your dividend nest egg over time.

Always been reading your blog.

You mind to do a blog link exchange?

ivan said...

Singtel has been very weak this week. Something is not right...

Dividends Warrior said...

Hi Ken,

Thanks for visiting my blog.

Sure. We can do a blog link exchange. ^^

Dividends Warrior said...

Hi ivan,

Singtel has been weak ever since it dropped below $3.

However, it is still staying about $2.90, so should be fine.

The price is trending sideways.

Anonymous said...

U quote warrent buffett... but i dont think he changes stock so frequently.. hahaha.. -.-"

but then its hard for normal ppl to select the "right" stock.. haizzz

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