Wednesday, August 21, 2019

The Power Of Compounding Dividends & A Mystery Counter Revealed

The Snowball Effect Over Last 5 Years
My overall portfolio value as well as dividend stream has grown considerably since 2014. Besides injecting fresh capital, consistently re-investing my dividends has started to make an impact. Compounding growing dividends over long periods of time has been the cornerstone of my investing strategy. I believe this strategy is probably one of the best 'wealth-creating machines' on earth, especially for the ordinary man on the street. Tried and tested. 



Time in market is better than timing the market

   Top 10 Core Holdings
Are you able to spot the mystery counter? :)

11 comments:

haixu said...

Hi,

can you share which software you are using to generate the graph? I am interested in the time-weight returns.

Thank you.

Unknown said...

Hi,
May I check which portfolio software or app you are using?

Francis

Dividend Warrior said...

Hi Haixiu and Francis,

I'm using the StocksCafe platform.
Here is the link :)

https://stocks.cafe/welcome

Pipping Cafe said...

Hi dw got thought of getting back into starhub and aims amp? I remembered this was your biggest positions.

Unknown said...

Thanks

Dividend Warrior said...

Hi Pipping Cafe,

Yup, both of them used to be core positions in my portfolio a couple of years back. In fact, I was vested in all 3 local telcos at one time. Unfortunately, there was fundamental and structural changes to this industry. First, the competition from the 4th telco will affect earnings growth. Second, the younger generation doesn't watch cable anymore. They prefer streaming services like Netflix. But 'hubbing' is a big part of Starhub's strategy over the years. Both these reasons led me to believe that dividends would be cut and I was right. Singtel's dividend payout is also looking pretty borderline sustainable. So nope, I have never thought of getting back into telcos. They have not been in my watchlist for a long time.

Now, let's move on to AIMS AMP. This is an alright industrial reit. But the thing is, I have long decided to transition from 'alright' reits. I prefer to focus on quality reits from CapitaLand, Frasers, Mapletree, Keppel. That's why I divested all my '2nd-Tier' reits like First REIT, Cache Logistics, AIMS AMP etc. Since I am holding reits long-term, might as well go for the '1st-Tier' ones.

Pipping Cafe said...

Thanks for the reply , no wonder all ur holdings is tier 1 REITs.

Learner said...

Did you do the dividend reinvest here? Reinvest also incurred commission and other charges to be minus off?

Dividend_Buddy said...

seems like reits this time round also sold down
you plan to cash out? or hold? or add more reits?
please share your thoughts and action on your reits heavy portfolio thanks

30YearOldInvestor said...

Thanks for posting your comments on the first-tier reits for long term :)) Do agree with you.

Unknown said...

Hi, dividend warrior

What are your thoughts on holding on to a mixture of reits, etf and stocks? Both foreign and local such as s&p 500, visa or even the sti index.