Tuesday, July 24, 2012

Dividend Payment Dates in August 2012

Ah....... there is nothing better than waking up on a brand new day knowing that cash is being credited into your bank account. I have 4 "Happy" days in August. ^^

1 August:
- Vodafone

14 August:
- M1

24 August:
- Singtel

29 August:
- CapitaMall Trust
- Frasers CentrePoint Trust
- Suntec REIT
- First REIT
- CACHE

31 August:
- Starhub


Peace Out,
Dividend Warrior

Saturday, July 14, 2012

July 2012 Singapore Dividend Portfolio Update


No.
Stock
Lots
Average Price (S$)
% of Portfolio
1
Starhub
10
$2.467
20.81%
2
SPH
5
$3.756
15.84%
3
Singtel
6
$2.948
14.92%
4
Capitamall Trust
7
$1.685
9.95%
5
M1
5
$2.290
9.66%
6
AIMS AMP REIT
11
$0.968
8.98%
7
Suntec REIT
6
$1.26
6.38%
8
First REIT
10
$0.736
6.21%
9
Frasers Centrepoint Trust
4
$1.44
4.86%
10
CACHE Logistics Trust
3
$0.950
2.40%



Total dividends collected in 2012
S$3955.96
Total Invested Capital
S$118,561
Projected Annual Yield (2012)
7%
Average Monthly Dividends (2012)
S$565.14
Available funds for investment

S$9,000
Paper Gain / Loss (S$)

S$27, 300

I do not foresee myself changing anything for my Singapore Dividend Portfolio this month. Therefore, I decided to do an update earlier than usual. (My portfolio is stagnating T T *sob sob*)

For the month of July, I did not receive any dividends at all from my Singapore stocks. As a result, my average monthly dividends plunged to S$565.14. No worries. Another round of cash distributions and dividends are coming in August! Furthermore, my portfolio paper profit has crossed the S$27k mark for the first time as of Friday, 13 July 2012. ^^

Several readers have posted these 2 common questions to me in the past. 
- "I wonder what will you do/ how will you feel if the stock price drop is more than the dividends you received?"
- "What will you do if the price increase so much that you have no opportunity to buy?"

Let me address the questions here.

"What will you do/ How will you feel if the stock price drop is more than the dividends you received?"
Ans: Firstly, if the price drop is due to a global slowdown, it is not disastrous and there is no need to panic. As long as the fundamentals of the company is strong, it will survive the recession. In fact, a price dip could be a good buying opportunity. Example: 3 years ago, Starhub had to survive a triple whammy in 2009. There was the 1) financial meltdown, 2) the company lost the exclusive broadcast rights to the English Premier League matches and 3) H1N1 virus outbreak. Instead of going bankrupt, it increased its dividends and reached a new high of $3.60 recently. I know what some of you are thinking. "Alright! I shall follow DW's advise and average down whenever there is a price dip. Sure win!" Please do not do that. You must be selective. I am not telling you to average down blindly. Averaging down a troubled fundamentally weak company is just digging a deeper grave for yourself. Please do your own due diligence. 

Secondly (and this is the more important reason IMHO), I believe the dividends will be able to cover the price drop most of the time. Again, I know what you are thinking. "Is DW going crazy?!!" 
Allow me to illustrate a hypothetical scenario. Example: This quarter, Starhub is giving S$0.05 per share as usual. Oh no! Greece suddenly defaulted! Spain defaulted! The market is crashing! The price of Starhub plunged from S$3.60 to S$3! The latest dividend cannot cover the price drop! Sell! Sell! Sell!
However, if an investor has stayed invested for the past 3 years, he would have received $200 x 3 = $600 worth of dividends. Therefore, the $0.60 price drop is fully covered by the dividends. My point is, stay invested for the long-term. The longer you are invested, the greater the amount of dividends you will have to weather the storms. Another famous example will be Warren Buffett. Do you think he would be worried if the price of Coca Cola drops during a recession? He will not bat an eyelid simply because the amount of dividends he received over the past 30 odd years are more than enough to cover a fall in price.

"What will you do if the price increase so much that you have no opportunity to buy?"
Ans: Simple. Sit tight. Relax, Shake leg. Collect dividends as you wait for an opportunity. I am doing that now. ^_^
Remember, More Wealth with Less Work!



Peace Out,
Dividend Warrior

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