Sunday, December 10, 2017

DW December 2017 Portfolio Update - The Warrior Returns

Current Portfolio Value: $426k 
Projected Annual Dividends: $21.6k 
Projected Monthly Dividends: $1.8k

Top 5 Holdings (48.6% allocation)
1) Frasers Logistics & Industrial Trust (BUOU) 
2) Mapletree Logistics Trust (M44U) 
3) SingTel (Z74) 
4) Mapletree Commercial Trust (N2IU) 
5) OCBC Bank (O39)

8th Anniversary of Investing Journey
Last month was the 8th anniversary of my investing journey. A journey packed with ups and downs. I still remember buying CMT, Suntec & Starhub in 2009 as a wide-eyed beginner, like it was just yesterday. Honestly, this portfolio I have built exceeds way beyond my expectations. It seems like yesterday when I just achieved my $200k milestone ( Interesting to see how my portfolio has evolved over the last 4 years.
‘Badges’ big and small were earned. Euro debt crisis (PIIGS), Grexit turmoil, U.S. debt ceiling crisis, Arab Spring, Japan's earthquake & subsequent Fukushima nuclear accident, Fed QE Taper Tantrums, Hong Kong ‘Umbrella Movement’, Brexit, Fed rate hikes, Trump election victory, China market crash (still remember the circuit-breakers being triggered on consecutive days), O&G crisis.
Nevertheless, I focused on growing my portfolio & dividend income through all these fears and so-called ‘crises’. All the while, taking those analysts’ and experts’ reports with a spoonful of salt. Things are seldom really bad or really good. As long as we keep earning, saving & investing, the compounding effect will reward us over the long-term. 

2017 Review 
As 2017 comes to an end, I must say this year is set to be one of the best years for my portfolio’s total returns. Unlike 2016, there was no roller-coaster ride (except the occasional colourful war of words between Trump & Kim). My portfolio grew from 3 contributing factors.
1) Sustained rally in the 3 local banks 
2) Unexpected recovery of REITs since the lows of December 2016 
3) Fresh injection of capital + re-investment of dividends received

As I am heavily vested in S-REITs and banks, my portfolio outperformed the STI slightly with a time-weighted return of +23.4% in 2017. My best-performing stock would be DBS, almost +60% y-o-y total returns. Worst-performing stock would be RMG with a -21.8% y-o-y decline. As I returned to my roots and started re-building my income portfolio, its size grew steadily from $388k in June to $426k now. Collected $20.7k dividends in total, which translates into $1,725 per month.

Power of CD
Dividend Warrior


dividendGeek said...

Nice dividends mate. Looks like you are on your way to financial independence. Congrats!

Dividend Warrior said...

Hi dividendGeek,

Thanks! :)
I do my best.

Unknown said...

Nice performance in 2017! What is your current cash position ?

Dividend Warrior said...


Thanks for the compliment!

I am just contented to have kept pace with the STI. Lucky to be vested in banks & Reits, I guessed. ^_^

Current investment warchest is 3%

L. Yuan Sheng said...

Wow 3%,seems like u are all in! I would nvr dared to I invest such a large percentage. Is the 3% also for emergency funds or purely for investment warchest ?

Dividend Warrior said...

Hi Yuan Sheng,

I am at the 'asset accumulation' stage of my life and I am still relatively young. Besides, I did not invest a huge amount overnight. This portfolio is built up over 8 years. Not that scary. Hahaha!

Believe me, if I am a 70 year-old retired man, I would have significantly more cash on my hands. But that is still a long way from now.

The 3% is my investment warchest, separated from my emergency funds.

Dividend Knight said...

Welcome back, Warrior!
Wow! Your monthly dividend amount is the same as the salary of a Poly graduate now! Well done!

Dividend Warrior said...

Hi DK,

It's good to be back! Yup, my income portfolio acts like a clone working for me. :)
Thanks for the support! Cheers!

Dividend Town said...

Welcome back, DW ! Do visit my blog !

Nick Tan said...

Hi DW,

i was wondering any advice from you if i wish to start small with capital :)

Joseph Wong said...

Hi DW what are some dividend counters we can add for 2018?

Dividend Warrior said...

Hi Dividend Town,

Thanks for the support! :D
Have visited your blog. Nice to see a fellow income investor.


Dividend Warrior said...

Hi Nick,

Start with at least $7k because trading fees would eat into your returns if the amount per transaction is too small.

Normally, I would suggest getting some STI etf to get your feet wet as a beginner. But the market has rallied a lot this year. It is best to wait for a more attractive entry level when valuations are lower.

So, be patient and store up a bigger amount of funds first.

Dividend Warrior said...

Hi Joseph,

Sorry for the late reply. Was away on Christmas holidays.

In terms of dividend counters, I am looking at Singtel (price dip after XD) and Starhill Global (the only quality Reit not to have ran up too much yet)


Related Posts Plugin for WordPress, Blogger...