Thursday, December 26, 2013

2014 Dividend Payment Schedule

In 2014, I shall be collecting dividends for every month, except July and October. 
Mini-bonuses almost every month! Rejoice! ^^

January 2014:
- Singtel

Feb 2014:
- CapitaMall Trust
- Frasers CentrePoint Trust
- First REIT
- Suntec REIT
- Mapletree Logistics Trust
- CACHE Logistic Trust
- PLife REIT

Mar 2014:
- AIMS AMP REIT
- Mapletree Industrial Trust

April 2014:
- M1

May 2014:
- Starhub
- SPH
- ST Engineering- CapitaMall Trust
- Frasers CentrePoint Trust
-  First REIT
- Suntec REIT
- Mapletree Logistics Trust
- CACHE Logistic Trust
- Neratel

June 2014:
- Starhub
- PLife REIT
- AIMS AMP REIT
- Mapletree Industrial Trust

August 2014:
- Singtel
- M1
- SATS Ltd
- ST Engineering- CapitaMall Trust
- Frasers CentrePoint Trust
- First REIT
- Suntec REIT
- Mapletree Logistics Trust
- CACHE Logistic Trust
- Neratel

September 2014:
- AIMS AMP REIT
- Mapletree Industrial Trust

November 2014:
- Starhub
- CapitaMall Trust

- Frasers CentrePoint Trust
- First REIT
- Suntec REIT
- Mapletree Logistics Trust
- CACHE Logistic Trust

December 2014:
- SPH
- SATS Ltd
- AIMS AMP REIT
- PLife REIT
- Mapletree Industrial Trust


Happy Boxing Day!
Dividend Warrior

Monday, December 23, 2013

Catalysts for 2014 (Part 1)

Last week, the Fed finally announced the start of QE taper. Most of you would have known that QE tapering is largely negative for REITs as they are rather sensitive to a rise in interest rates. Dividend stocks are relatively more resilient, even though they were not spared from the recent correction in the local market. All these seem so gloomy and depressing :(

Christmas is around the corner, so I decided to spread some festive cheer! Let's take a look at positive future catalysts for some of my dividend stocks and REITs.


ST Engineering and SATS Ltd:
  • It is possible for ST Engg and SATS to raise their dividend payouts. Both companies are sitting on huge cash piles. ST Engg has more than S$300m and SATS has S$270m. ST Engg has strong long-term earnings visibility, with an order book of S$12.5b as at September 2013. SATS' recent acquisition of the Singapore Cruise Centre will provide synergy with the Marina Bay Hub. The joint venture at the new Sports Hub will start to reap benefits in 2015 when Singapore hosts the SEA Games.
Changi Airport T4 and Project Jewel are expected to be completed in 2017 and 2018 respectively.
  • ST Engg is the largest third-party maintenance, repair and overhaul (MRO) service provider for commercial aircrafts in the world. Since Singapore is probably going to become a regional aviation hub by 2020, it may translate to more business for ST Engg. 
  • SATS is already the dominant service provider at Changi Airport. Therefore, it stands a high chance of winning contracts/tenders to provide gateway services at the new Changi Airport Terminals 4 & 5.  

M1:
  • Barring unforeseen catastrophe, M1's management have guided a steady single-digit growth in revenue and EBITA next year. A rough back-of-the-envelope calculation shows that full-year earnings per share should be around 17 to 17.2 cents for 2014. If the management decides to maintain the same payout ratio, total dividends for 2014 should increase from 14.8 cents (2013) to 15.4 cents next year. Furthermore, the management already guided that capex for 2014 will be similar to 2013, at S$130m. So, I believe the possibility of M1 raising dividends next year is high. 
Source: The Business Times (20 December 2013)
  • Compared to Singtel and Starhub, M1 will benefit the most from the trend of consumers switching to 4G data plans in the future. Around 80% of M1's revenue comes from mobile data. 


AIMS AMP Capital Industrial Trust:

  • Redevelopments at 103 Defu Lane 10 and 20 Gul Way Phase 2E and Phase 3 should be completed by May 2014 and December 2014 respectively. The new space at 20 Gul Way will be leased to CWT with an annual rental escalation of 2%. 
Optus Centre is an A-Grade business park located at Macquarie Park in Sydney's north.
It is fully leased to Optus Administration, a unit of SingTel Optus
  • Acquiring 49% interest in Optus Centre, Sydney. This latest acquisition should be finalised by January 2014 and it offers 6 benefits. 1) Creates geographic diversification 2) Portfolio diversification into business park office space 3) First free-hold property in the portfolio with a quality tenant 4) Long WALE of 8.6 years, with rental escalation of 3% per annum 5) Weighted average debt tenor improves from 2.8 years to 3.4 years 6) Accretive to DPU

Mapletree Industrial Trust:
  • The build-to-suit development for Kulicke & Soffa has been completed recently. Distribution from this asset will start coming in 1Q 2014.
  • The various AEIs at Woodlands Central and Toa Payoh North 1 have been completed. Distribution from these two properties will start coming in 1Q 2014.  
  • The build-to-suit data centre for Equinix Singapore has begun construction in April 2013. It is scheduled to be completed in the second half of 2014. This data centre is leased to Equinix over 20 years, with the option to extend 5+5 years, at a rental escalation of 2% per annum. 

  • On 18 April 2013, Equinix held a groundbreaking ceremony to mark the start of construction of the building. The $108m project will be situated within one-north and consists of a seven-storey high specification building with a gross floor area of approximately 385,000 sqft. It is easily accessed via major expressways such as Ayer Rajah Expressway and Pan Island Expressway, and is within close proximity to one-north and Buona Vista Mass Rapid Transit (MRT) Stations.

Mapletree Logistics Trust:
Mapletree Benoi Logistics Hub is a five-storey ramp-up logistics facility located near to the Jurong and Pasir Panjang Ports and with easy access to the city. The building has been conferred the BCA Green Mark Platinum Award and incorporates modern features that cater to the operations of logistics companies.
  • The redevelopment of Mapletree Benoi Logistics Hub is on track for completion in 3QFY14, with 94% of the space already pre-committed by Menlo Worldwide Logistics on a 10-year lease. 
  • MLT will be embarking on its next redevelopment project at 5B Toh Guan Road in early FY15, which will see the site transform from a 3-storey warehouse to a 6-storey modern ramp-up facility. The plot ratio will be maximised from 0.93x to 2.5x. I like how MLT is focusing more on organic growth and rejuvenating its older assets. 


Merry Merry Christmas! ^^
Dividend Warrior

Thursday, December 12, 2013

DW 2014 Dividend Investing Goal

2013 - Financial Independence Achieved...errmmm...technically

2013 was a rather eventful year. The US fiscal cliff shenanigans at the start of the year, followed by QE taper fears, US debt ceiling fight and ending with a spectacular crash of the local penny stocks market. Through it all, I am proud to say my portfolio and my dividend income stream continue to grow in 2013. In fact, I managed to celebrate my 30th birthday by achieving the goal of collecting S$1k per month in dividends. Better still, I surpassed that goal!^^


Let's take a final look at how my Singapore Dividend Portfolio has performed in 2013.
  • My portfolio size in terms of cost/capital has increased from S$163,794 to almost S$200k now. This represents a 22.1% rise.
  • I collected a total of S$14,370 dividends in 2013 compared to S$8,968 in 2012. This represents a 59.6% rise. 
  • My portfolio's current dividend yield remains healthy at 7.1%, compared to 6.8% in 2012.


2014 - Buying Opportunities!

Even though my passive dividend income is already sufficient to pay for all my daily expenses and bills, I am not resting on my laurels. I believe that 2014 will be the year when the compounding effect on my portfolio will shine through. It will be the year when my dividend compounding strategy kicks into high gear. My regular readers should understand what I meant. However, those of you who are new to my blog may be wondering, "Is DW thinking straight? Is he blinded by yield? The Fed is starting QE taper soon! Interest rates will rise! REITs and dividend stocks will go out of favour! Why is he still buying dividend stocks?"

The answer is simple. I am currently in the accumulation phase of my investing life. In other words, I am a net buyer of stocks. Therefore, I wish to see prices weaken so that I can keep growing my portfolio. Of course, there are risks. But I have faith in my strategy and it has served me well over the past 4 years. I just need to be more selective when adding counters. My new dividend income target for 2014 shall be S$1.2k per month. 


Projected dividends for 2014 (based on current portfolio)
  1. Singtel: S$1176
  2. Starhub: S$2000
  3. M1: S$1022
  4. SPH: $1100**
  5. SATS: $150
  6. Neratel: S$120
  7. CapitaMall Trust: S$700
  8. Frasers Centrepoint Trust: S$1040
  9. Suntec REIT: S$552
  10. AIMS AMP: S$2700
  11. CACHE: S$848
  12. First REIT: $760
  13. PLife REIT: S$416
  14. Mapletree Industrial Trust: S$197
  15. Mapletree Logistics Trust: S$364**
  16. ST Engineering: S$168**
Total: S$13,313

**Note: I have divested HPH Trust and Sabana REIT. Added Mapletree Logistics Trust and ST Engineering. The total dividend is an estimated figure based on 2013 numbers. There is NO guarantee the companies will maintain the dividends next year. The special dividend payout due to the SPH REIT spin-off is not included in the calculation.  



Embrace the Power of CD!
Dividend Warrior

Tuesday, December 3, 2013

DW December 2013 Singapore Dividend Portfolio Update

No.
Stock
Lots
Average Price
% of Portfolio
1
AIMS AMP REIT
25
$1.236
15.86%
2
Starhub
10
$2.467
12.66%
3
Singtel
7
$2.983
10.72%
4
SPH
5
$3.756
9.64%
5
Frasers Centrepoint Trust
10
$1.70
8.72%
6
M1
7
$3.33
8.67%
7
Capitamall Trust
7
$1.689
6.07%
8
CACHE Logistics Trust
10
$1.115
5.72%
9
Parkway Life REIT
4
$1.99
4.09%
10
Suntec REIT
6
$1.26
3.88%
11
First REIT
10
$0.736
3.78%
12
Sabana REIT
6
$1.07
3.29%
13
Mapletree Logistics Trust
5
$1.06
2.72%
14
SATS Ltd
1
$3.28
1.70%
15
Mapletree Industrial Trust
2
$1.46
1.50%
16
Neratel
3
$0.63
0.99%





















Total dividends collected (2013)
S$14,310
Total Invested Capital
S$201,690
Projected Annual Yield (2013)
6%
Average Monthly Dividends (2013)
S$1, 192
Available funds for investment

S$7,000
Unrealized Paper Gain (S$)

S$41,356



For the month of December, I shall be collecting a total of S$1643.30 in dividends. Christmas come early! Ho Ho Ho! ^^
  1. Mapletree Industrial Trust: S$49.40
  2. SATS Ltd: S$50
  3. Parkway Life REIT: S$106.40
  4. AIMS AMP: S$687.50
  5. SPH: S$750
Finally, the last portfolio update of the year. I divested HPH Trust and initiated a new position in Mapletree Logistics Trust. In my opinion, HPH Trust will probably be unable to sustain its cash distributions due to increased capex going forward. Mapletree Logistics Trust is a better replacement because it has catalysts for future DPU increase. The redevelopment of Mapletree Benoi Logistics Hub is on track for completion in 3QFY14, with 94% of the space already pre-committed by Menlo Worldwide Logistics on a 10-year lease. Following this, MLT will be embarking on its next redevelopment project at 5B Toh Guan Road in early FY15, which will see the site transform from a 3-storey warehouse to a 6-storey modern ramp-up facility. The plot ratio will be maximised from 0.93x to 2.5x. I like how MLT is focusing more on organic growth and rejuvenating its older assets. 


Mapletree Benoi Logistics Hub is a five-storey ramp-up logistics facility located near to the Jurong and Pasir Panjang Ports and with easy access to the city. The building has been conferred the BCA Green Mark Platinum Award and incorporates modern features that cater to the operations of logistics companies.

This year, I managed to collect a total of S$14,310 in dividends. This translates to S$1,192 per month on average. Sometimes, I feel as if a clone of myself is working a low-wage job! However, excluding the special dividend from SPH this year, my monthly average dividend income will be S$1,117. Still pretty decent. 

Time really flies! Looking back at my portfolio update in December 2010, I am astounded by the huge progress I have made. My humble blog is already 3 years old! Never in my wildest dream have I imagine building such a massive income portfolio as a salaried worker. I guess one must have faith in his investment strategy and not be easily swayed by external noises.

I will be sharing my investment goals for 2014 in my next post. Stay tuned! 


Keep the Faith,
Dividend Warrior

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