Wednesday, February 5, 2014

DW February 2014 Singapore Dividend Portfolio update



No.
Stock
Lots
Average Price
% of Portfolio
1
AIMS AMP REIT
25
$1.236
15.81%
2
Starhub
10
$2.467
12.63%
3
Singtel
7
$2.983
10.69%
4
SPH
5
$3.756
9.61%
5
Frasers Centrepoint Trust
10
$1.70
8.70%
6
M1
7
$3.33
8.64%
7
Capitamall Trust
7
$1.689
6.05%
8
CACHE Logistics Trust
10
$1.115
5.71%
9
Parkway Life REIT
4
$1.99
4.07%
10
Suntec REIT
6
$1.26
3.87%
11
First REIT
10
$0.736
3.77%
12
SATS Ltd
2
$3.21
3.29%
13
Mapletree Logistics Trust
5
$1.06
2.71%
14
ST Engineering
1
$3.81
1.97%
15
Mapletree Industrial Trust
2
$1.46
1.50%
16
Neratel
3
$0.63
0.99%




















Total dividends collected (2014)
S$1685.62
Total Invested Capital
S$201,690
Projected Annual Yield (2014)
6%
Average Monthly Dividends (2014)
S$140
Available funds for investment

S$9,000
Unrealized Paper Gain (S$)

S$31,637



For the month of February, I will be collecting a total of S$1209.62 in dividends from CapitaMall Trust, Frasers Centrepoint Trust, Suntec REIT, Mapletree Logistics Trust, CACHE Logistics Trust, First REIT and PLife REIT.
  1. CapitaMall Trust: S$190.40
  2. Frasers Centrepoint Trust: S$250
  3. Suntec REIT: S$153.72
  4. Mapletree Logistics Trust: S$92
  5. CACHE Logistics Trust: S$213.70
  6. First REIT: S$197
  7. PLife REIT: S$112.80
The Singapore stock market has been going through heavy correction recently. There are two groups of investors during times like now. Some investors become fearful, go full cash and stay on the sidelines. Others follow Warren Buffett's advice that 'we should be greedy when others are fearful'.

Well, I prefer not to deal with extremes. Why must we swing wildly between fear and greed overnight? Why should we subject ourselves to the torture of volatile price swings? This is just......sad! One of my colleagues told me, "We are born. We become slaves to money. Then, we die." :(

I prefer to be balanced and neutral, neither too fearful nor greedy. I have said it before and I will say it again. Stay calm and collect dividends. Some of my detractors like to say,"yeah right.....later the dividends cannot even cover the price drop. Hahaha!" That's the thing. I am not afraid of short-term capital depreciation because I am still young. I can afford to wait for the prices to recover while collecting dividends, or I can even choose to average down. Power of Youth! But if you are a senior citizen in your 60s and 70s, by all means, protect your capital because you do not have the luxury of time to wait for prices to recover. 

Next, the detractors will ask,"What if the prices do not recover? Then you will die pain pain!" Well, I avoid penny stocks and S-Chips like the plague. I believe my portfolio is reasonably solid for a person of my age. Not perfect, but solid. So, I believe in its potential to recover. At least, the counters in my portfolio will not crash and burn so very spectacularly like Blumont, Asiasons and Liongold. 

Alright, enough ranting from me. >__<"

Let's move on to more positive news. All the S-REITs reported their financial results a few weeks back. They are still doing fine except Sabana REIT. I am glad to have divested it. One of my readers, Cory, asked me if I am confident AIMS AMP will continue to do well over the next few years since it is my top holding. Well, among all the industrial REITs, I believe AIMS AMP has more visible future catalysts. The latest acquisition of Optus Centre in Australia, redevelopment of 20 Gul Way Phase 2E & 3 and 103 Defu Lane will increase DPU for FY2015 and FY2016. So, AIMS AMP shall remain my top holding until 2016, at the very least.

Source: The Edge Magazine
Source: The Edge Magazine

Another reader asked me about my views on Challenger Technologies Limited. The company is definitely doing well, adding new outlets and expanding its 'Valore' line of products. However, I feel that it faces considerable competition from other electronics stores such as Courts, EpiCentre, Nubox etc. etc.

Challenger stores under CMT:
- Funan DigitalLife Mall
- IMM
- JCube
- Plaza Singapura
- Junction 8
- Lot One
- Tampines Mall
- Bukit Panjang Plaza
- Bugis Junction


Challenger stores under FCT:
- Causeway Point
- Northpoint
- Bedok Point
- Yew Tee Point


Challenger stores under SPH REIT:
- Clementi Mall

Challenger stores under MCT:
- Vivocity


*Another 14 stores are not under any REITs.


As you can see in the consolidated list above, Challenger Technologies Limited has a huge number of stores located in retail REITs. I believe the same goes for its competitors. So, one way to benefit from all these profit-making electronics stores is to be vested in retail REITs. This way, it does not matter which company perform better or worse because ultimately, they still need to pay rental. 



Power of CD!!!
Dividend Warrior

45 comments:

Anonymous said...

Hi, I have recently received a letter from Mapletree Log regarding the option to receive fully paid units in lieu of cash amt of distribution. What do you think is better? The DRP or to take cash dividend?

SpinFire said...

Just curious, are you considering bank stocks (the big 3 of Singapore)? They have quite a decent yield of ~3.5% and prices have come down substantially during this correction.

Peter said...

HI DW!

I'm a loyal fan of yours! Just want your inputs.. Since the interest rates are rising right now, REITS would suffer.

What REIT would you recommend now based on good dividend yield? Is CACHE, MLT, MIT good? Is it ok to go in now? I already have AIMS and CMT in my portfolio. Or any other REITS?

Thank you!

Dividend Warrior said...

Hi Anonymous,

I also received the letter.

I would advise you to take the cash distribution. I am doing so too.

Dividend Warrior said...

Hi SpinFire,

I am afraid the banks are not on my watchlist because they cost alot. I cannot even afford 2 lots of DBS or UOB.....

I prefer those stocks which are below $5 per lot.

Dividend Warrior said...

Hi SpinFire,

Correction. I mean '$5 per share'.

Dividend Warrior said...

Hi Peter,

Thanks for your support.

Nice to know you already vested in AIMS and CMT.

MLT or CCT are reasonable choices.

Anonymous said...

Hi:
Why do you think Sabana is not doing well?

Anonymous said...

Hi DW,

If I would like to take the cash distribution for Mapletree Log, what process I need to do?
Can you please advise?
Sorry I am new to Singapore stock market.

Dividend Warrior said...

Hi Anonymous,

Sabana's DPU dropped a lot year-on-year.

Dividend Warrior said...

Hi Anonymous,

If u want the cash, u do NOT need to do anything. Just ignore the letter.

For me, I simply discard the letter. ^^

Melvin Moo said...

Good day, DW.

I have been observing your blog for a few months now and constantly reading the replies to learn more about investing.

Im pretty new to the system and would like to start building up my portfolio.

Is it recommended to start with sph, starhub, singtel, m1 and st engg with 1 lot each. With approximately 30k to start building it up?

I have just started nikko sti etf as well and do u think its a right choice?

How do i automated dividend back into the same stock?

Your kind recommendations is greatly appreciated.

Thanks,
Melvin

Anonymous said...

Hi DW,

I am 23yo and have a small amount of spare cash to invest ~10k. If I am looking for the highest return (dividends + price appreciation) and I am able to hold for however long it takes to achieve that, which are some good REITs or stocks would you recommend to achieve my goal.

Thank you ^^

Anonymous said...

Hi DW,

Do you think MLT and cache still an attractive buy? The price of both stocks have been dropping. If you have to choose one out of the two which one would you prefer? and why? :) (For the next 3-5 years)

Thank you. ^^

Dividend Warrior said...

Hi Melvin,

Thanks for following my blog. I appreciate your support.

If u intend to invest $30k, I will suggest allocating $10k each for 3 counters. From the list of stocks u have given, I will prefer M1, ST Engg & Singtel.

However, do note that ST Engg and Singtel are already part of the sti etf. So, you may wanna focus on M1 first.

Most companies in Singapore dun practice 'DRIP'. So, you must reinvest your dividends manually.

Dividend Warrior said...

Hi Anonymous,

Wow! You have lots of patience. Good for a young person. ^^

If u are ready to hold for long term, I will suggest raffles medical and the telcos. Bcos I believe the population will continue to age and people will continue to use Internet.

Dividend Warrior said...

Hi Anonymous,

Both are reasonable buys. Not super attractive though.

If I have to choose, I will prefer MLT bcos CACHE has a significant percentage of leases expiring in 2015.

MLT will be a safer choice over the next few years. Furthermore, it's sponsor is Mapletree Investments!

DirectAsia.com said...

Hi there, I tried to find a contact email but was unable to. I just wanted to let you know that we just uploaded a blog post called '10 of the Best Personal Finance & Investment Blogs in Singapore', and featured your blog Dividend Warrior. As your blog is such a valuable resource I guess we could hardly fail to give it a glowing review and help in some small way to spread the word!

http://www.directasia.com/blog/term-life/10-best-personal-finance-investment-blogs-in-singapore/

Our own blog is very much aimed at sharing using information around lifestyle areas such as cars, motorcycles, travel, the home, and personal finance/insurance. It's not especially commercial, more aimed at the knowledge and entertainment end of things. Since launching a year ago we've got a lot of traffic on the blog, and are really happy to be the only resource of this kind from a company of our type.

On a personal note I've really learnt a lot from your blog, and look forward to many more useful posts in the future. Thanks for sharing so much useful information as you do.

with best regards,

Mark Carter

Anonymous said...

Hi DW,

Thank you for your reply. :)

As mentioned on your earlier reply, so what are the attractive buy that you would suggest?

^^

Anonymous said...

Hi DW,
Can I ask how does the DRP for the mapletree log works assuming you have 5 lots?

Yv said...

Thanks for your advise on the Mapletree Log DRP

Melvin Moo said...

Should I be buying AIMS AMP REIT as well, as I can see that, you have quite a large portion in that REIT for growth purposes?

I'm really new to this but, what is counters and...

Can I ask, is it possible for me to buy a few different stocks under one transaction to minimise brokerage fees? Ie. M1(2 Lot), ST Engg (1 Lot) and Starhub ( 1 Lot)

Total : 3 different stocks but can i buy under 1 transaction? I came up with this because, in order for me to hit min $25 commission i need to invest approx 9100. But neither of that with starhub at 1 Lot, it wont hit 9.1k.

Your great guidance will be appreciated.

Regards,
Melvin

Anonymous said...

Hi DW,

What are you views on First REIT now? The price seems attractive. But with the Indonesia Rupiah volatility, not sure the price will drop further. Thanks

Aceirus

Anonymous said...

Hi DW,

Also, another thing I am uncomfortable with is they have floating interest rate debt which accounts for 46% total debt

Aceirus

Anonymous said...

Hi Mr DW,

May i check is Solbuild Biz REIT a good investment for the long run? It has relative low gearing ratio of 29~% and high occupancy rate of 99.9%.
Its downside is not having a strong support like MLT and etc.

Any pointers from you please?

XY said...

Hi, I would like to ask about how the dividends payout work in singapore? I bought one lot of Suntec Reit last year on december 13, 2013. However I have not receive my first dividend payout since than. I believe the recent payout is Jan 29, 2014 which I saw on yahoo finance website. Anyone can educate me with regard to this area?

Anonymous said...

Hi,

Any thoughts on the newly listed "TalkMed"? I am pretty optimistic about it due to its nature but not vested yet. Promises to pay up to 75% of net profit in dividends. IPO bid at 20c, opened at 60+c and closed even higher. Today up by 18%!

Have a nice day,
Jeremy

Gregg said...

Hi,not to worry on rupiah because all the rental are collected in SGD (Indonesia and Singapore)

Anonymous said...

DW,
What is your thoughts on Cityspring trust? Pretty good dividend yield.

Anonymous said...

Hi DW,

Would like to seek your advise on the rights issue for AIMS AMP.

Currently I have an CDP account in Singapore but my mailing address is out of Singapore, am I still entitle for the rights issue?

Justin Lim said...

Hi DW,

Given that REITS are generally highly levered entities, what's your take on the effect of upcoming periods of rising interest rates (ie FED Tapering) on the ability for REITS to obtain loans at past rates? Do you think this will cause their market price to fall further in the upcoming months?

asdf said...

Hi DW,

there is a rights issue from AIMS. would like to see a post from you on this.. thanks.

Anonymous said...

hi DW,

Make sure we don't catch you unload..

http://blogs.marketwatch.com/thetell/2014/02/17/soros-doubles-a-bearish-bet-on-the-sp-500-to-the-tune-of-1-3-billion/

David said...

hi DW,
can you pls tell me where can I follow the basic data of Singapore listed REITs? (div history, FFO history, debt levels, etc.)

Is there any site where these can be found or shall I look at each company's site separately?

Thanks for the info.
David

Anonymous said...

Hi able to share how to apply the excess rights via atm or internet banking(DBS) for AIMS?
Not sure where to click, thanks!

planeteers@live.com

Darren said...

Dw, can share ur strategy for AIMS reit upcoming coporate action ?

Suhaimi Ridwan said...

Hi DW

I'm new to investment and I really have no idea how to start and what to read etc. All I want to aim is financial freedom, dividend as passive income and gain new knowledge.

Could you share a tip or two for me to start?

Maybe you can reply via email at mohd891113@gmail.com

Thank you
Suhaimi

Suhaimi Ridwan said...

Hi DW

I'm new to investment and I really have no idea how to start and what to read etc. All I want to aim is financial freedom, dividend as passive income and gain new knowledge.

Could you share a tip or two for me to start?

TheDove said...

aims reit has issues rights, should I go for it? What is your advise DW? Thanks.

kurt goh said...

Hi DW,

wanna ask. IF i got spare cash of 20K, i intend to grow this money and earn some decent dividends for the next few years.

which should i go for?
REITS is out as i'm holding cambridge few years back while they are at 40cent.

Same applies, i like below $5 stock.

Anonymous said...

any updates for march? its going to end soon..

Anonymous said...

Hi DW:

I have found your blog posting a great encouragement and wonder when your next update will be .....

Looking forward to it soon!

Cheers
Tony

Anonymous said...

Hi DW:

I have found your blog posting a great encouragement and wonder when your next update will be .....

Looking forward to it soon!

Cheers
Tony

Anonymous said...

Hi DW

Found your blog very encouraging and looking forward to your next posting ....

Cheers
Tony

Anonymous said...

HI DW,

you don't update your global portfolio anymore? Thanks.

regards,
ZC

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