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)
- Singtel: S$1176
- Starhub: S$2000
- M1: S$1022
- SPH: $1100**
- SATS: $150
- Neratel: S$120
- CapitaMall Trust: S$700
- Frasers Centrepoint Trust: S$1040
- Suntec REIT: S$552
- AIMS AMP: S$2700
- CACHE: S$848
- First REIT: $760
- PLife REIT: S$416
- Mapletree Industrial Trust: S$197
- Mapletree Logistics Trust: S$364**
- 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
54 comments:
just curious - you mentioned about accumulating stocks at this stage of your investing life. have you sold any of the stocks you own for the past years? or are you just accumulating and averaging down/up as it moves along?
Congratulations!
Hi Dividend Warrior,
Congratulations on achieving a form of financial independence at 30!
And good luck on building a 20% buffer for 2014!
Hi DW,
Awe-inspiring blog! Kudos to you. May i know what counters you are looking for in 2014?
Well done DW.. Why u divested hph? You divest hph at what price?
Hi DW
Congratulations and I believe 2014 will be the year of opportunities again for dividend investors.
B
Hi ang,
I am a NET buyer of stocks. That means I buy more than I sell. I usually sell when a particular counter's fundamentals weaken or if I spotted a better replacement.
For example, I used to own SMRT shares. However, I started to observe that its fundamentals were dipping. Luckily, I divested before all the train breakdowns and delays happened.
Hi Uncle 888,
Thanks for the support! ^^
Hi 15 HWW,
Thanks! You are doing well too! ^^
Hi Anonymous,
Thanks for the compliment! :)
Right now, I am looking at:
- ST Engineering
- SATS
- M1
- Sheng Siong
- Raffles Medical
- Silverlake
- Ascendas REIT
Hi Dividend Chaser,
I divested HPH because:
1) I think HPH may have to spend alot more on capex next year. They have already delayed it for 2 years. I dun think they can keep delaying much longer. Therefore, its current high cash distribution cannot be maintained.
2) I think MLT is a better replacement for the long term. The ports that HPH runs have a concession of around 30 years. After 30 years, the concessions may not be renewed.
Hi Dividend Warrior,
All the best in your endeavour! I've been following the posts in HWZ and have never been really serious in accumulating CD stocks until recently - I was a trader beforehand and suffered a huge loss (relative to my age and savings account, of course!) before I took time off and started to read books on value investing, among many other things, like reflecting on my past trades and my strategy against the big boys.
Despite being a late 'investor', I am finding so much more value in the things I am doing now. I'm acting more like a shareholder of the company instead of an opportunist trying to make gains at every trade, and treating the stock paper, well, like literally a piece of paper. Haha.
So thank you for your blog, and please continue posting frequently about your activities. They are very enriching and I enjoy every single post because each new post educates me as much as the previous ones.
Have a great day!
DW
Meekiatah on HWZ here.
Congrats on your achievement.
Your blog hasbeen a great inspiration for me.
MKT
Congrats on achievement so far.
We are of the same age and I should say I see similaries in both of us when managing monies and accumulating our wealth.
Financial freedom at 30 is way too very young for average Singaporean! Hahaha.. but continue to do what you enjoy without worrying about "bills" is a great idea!
Continue to grow your pot of wealth and huat ah for 2014!!
Hi DW
Why are you looking at Raffles Medical and Silverlake? Their dividend yields are so low
Congrats!
Have been following your blog for the past 1 year plus and it has been informative.
Keep up the good work!
Just wanna share that we are around the same age and the main difference is that your size is bigger than mine :)
Once again, thank you for the posts and keep it going!
Hi what do you about AIMS AMP REIT? Recently price been dropped.
Impressive you can earn so much at your age.
Hi dw.
If someone is 21 of age and has 300k worth of portfolio, how long do you think it'll take for him/her to reach 1 mil through investing?
Hi DW,
is dilution of units a major bad point of reits, given that when a reit reaches its max gearing limit, it will commonly use rights and private placement to get more funds from shareholders?
Hi DW,
May i ask on your opinion for Suntec Reit? It seems to have been dropping the past few weeks despite the AEI of Suntec being on track.
Is it a good REIT to buy?
Thanks
Hi dw
may i know why did u divest HPH and savana
regards
JF
Hi,
Would be helpful to be able to read about more in-depth analyses of the companies you bought, or intend to buy.
What are the main risks facing your portfolio now, not on a macro basis but on a corporate level?
Since most of your portfolio is geared towards income (i.e. dividends), have you assessed the sustainability of this yield? 7% is currently fairly decent, but it must be weighed against the risks you are taking with particular businesses or sectors/industries.
Thanks.
Hi Mr DW,
I just started investing a couple months ago. Now my portfolio is getting larger and i think it would be better to have a spreadsheet to track my portfolio performance. A lot of spreadsheet found online were not suitable for sgx stocks. Would it be possible for you to share the spreadsheet you used to track your stock portfolio or the software you using.
Million of thanks!
Hi DW,
Is there anyway to email you? I actually have something to ask you, and prefer to email you if you dont mind :)
Thank you
Congrats on your achievement~
I have came across your blog in the past few months and now I'm inspired to have passive income of $1k by 2016.
Thanks for your sharing.
Congrats!
I have came across your blog in the past few months and now inspired to have passive income of $1k by 2016.
Thanks for the sharing.
Hi Ray,
Thanks for the kind words. I am glad you are doing better in your investments now.
Looking forward to your continued support! :)
Hi Meekiatah,
Nice to see you here. ^^
Yup. I saw your thread in HWZ forum.
Thanks for the support.
Hi SGFTFund,
Yup. No need to worry about bills is nice.
Wishing you a prosperous 2014 too! ^^
Hi HumbleBlogger,
I like the growth potential of raffles medical & silverlake. It is possible they may raise dividends in the future.
Hi Adarina,
Thanks for following my blog.
Wishing you a great 2014 ahead! :)
Hi Anonymous,
I still have confidence in AIMS AMP.
Redevelopment at 103 Defu Lane and 20 Gul Way phase 2E and 3 will be completed by the end of 2014.
Its latest acquisition in Australia is pretty good too.
Hi Anonymous,
I am afraid your question is too open-ended. If that 21 year old person invest his $300k diligently and prudently, his portfolio value should grow in the long run.
However, I have no idea when he will become a millionaire. LOL.......
Hi Anonymous,
Not necessary true in all cases. It depends on how the management utilize the funds raised.
If the funds are used for yield-accretive acquisitions or AEIs, it is good for the unit holder.
Therefore, prudent and efficient management of capital is crucial for REITs.
Hi Anonymous,
IMHO, Suntec REIT is a decent buy below $1.50
Hi JF,
I divested HPH because I dun think it can sustain its current level of distributions in 2014 and beyond.
I divested Sabana bcos I have lost my confidence in the management. They are struggling to secure lease renewals and finding new tenants.
Hi Musicwhiz,
Thanks for dropping a comment. I shall include more in-depth analysis for my recent purchases when I post my next portfolio update in Jan 2014.
I guess the major risk to my current portfolio is a sudden spike in interest rates. Hopefully, the QE taper will be gradual and gentle.
My portfolio yield should still be sustained in 2014.
Hi Anonymous,
I think another blogger called Investment Moat (Drizzt) has a good portfolio tracker on his blog. You may wanna check it out. ^^
Hi Z Chen,
I am glad to have inspired you.
Welcome to the dividend investing club!^^
Hi DW,
It is very exciting and encouraging to see the results of your journey so far.
I started my portfolio in June 2012, with the same basic investment principles. I can't wait to see big results in a few years.
Keep it up!
Cheers,
Lil Quack
hi Dividend warrior,
just curious to ask do u use the TA/FA ratio to calculate the company's stock and future growth?
Hello DW!
I am currently still a polytechnic student studying investment and I like the way you invest and collect dividends!
Just curious did you face any objections from parents when you told them you want to start investing?
Congrats DW!
You even manage to build up your mum's retirement income so fast.
What do you think about beverage company like F&N(F99) and Thai Beverage(Y92)?
Damn. My current portfolio is 30k and I'm 26 already. If I use your 200k benchmark by 30, that would mean I won't be eating for 4 years. Hahah.
Hi Lil Quack,
Thanks for the support.
I am sure your portfolio will do well. ^^
Hi Anonymous,
I mainly use FA to gauge a stock.
Hi 1337,
Thanks for the compliment. ^^
Yes, my parents (especially my Mom) were skeptical about my investment.
But once they see passive dividends streaming into my bank account, they started to accept it. I even managed to convince my Mom to let me help her invest. :)
Hi Tommy Loh,
Thanks for the kind words! ^^
F&N will be spinning off its property arm in an IPO. So, it will only be left with the beverage business, which is not high growth. Thai Bev was given a junk credit rating recently due to its huge amount of debts.
For me, I will avoid them for now.
Cheers!
Hi Neo Ce Zheng,
If you are single, my advice would be to save up more. Maybe even take up a part-time job.
However, if you have a family to support, I do understand it is difficult. Cost of living is high in Singapore..... :(
Hi,
so wat are FA Ratios, u use to calculate if the stock is worthing or not.eg. EPS,PE Ratio....
Hi DW,
Im a constant reader of your blog.
But, sadly to say, I have no idea where to start trading. Would you care to advise?
Hi Anonymous,
I usually look at:
- Net profits/ retained earnings
- Debt levels
- Cash reserves
- Dividend payout ratio
- Dividend history
- P/E ratio
- Management track record
Hi Anonymous,
I dun really do trading......
I prefer to invest for dividends and growth.
All you need to do is to apply for a trading account at a brokerage firm. Then, you can start to buy or sell stocks in front of a computer. ^^
I like the photo, haha
Congrates!
For the stocks what you are looking at, most dividend yield is low so far, any other factors you may use to do the judgement?
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