|(Total cumulative dividends: S$249, 321)
Portfolio Cost: S$589, 075
Portfolio Market Value: S$740, 355
Portfolio Overall Unrealized Profit: +S$151, 280 (+25.68%)
Portfolio XIRR (Q1 2023): +12.14% (inclusive of dividends)
Dividends Collected (Q1 2023): S$7, 814 (+43% yoy)
Total Cumulative Dividends (2010 - Q1 2023): S$249, 321
Current Cash Warchest: S$36, 723
(*All figures are accurate as of 31 Mar 2023)
Portfolio Actions in Q1 2023:
- Accumulated OCBC at S$12.30
- Accumulated UOB at S$28.90
- Accumulated Mapletree Industrial Trust at S$2.33
In Q1 2023, the three local banks raised their dividend payouts. DBS is the leader in this respect by paying out a hefty special dividend. This helps to boost my Q1 2023 dividends by 43% year-on-year compared to Q1 2022. On track to exceed S$38k in annual dividends. Alibaba, US Big Tech and blue-chip REITs staged a late rally towards the end of March, thus boosting my portfolio YTD returns into positive territory.
Well, long-time readers of my blog would know what I tend to do in turbulent times like these. I did what I do best. I invoked my warrior spirit and bought the dip. Nibbled some OCBC, UOB and Mapletree Industrial Trust. The compounding of quality dividend stocks never stops. How does Dividend Warrior stay unfazed and calm during a market turmoil? You can refer to my old post here.
Did Not Follow The Flight To Safety
When others were rushing into fixed deposits, T-bills and Singapore Savings Bonds, I was busy accumulating more solid dividend payers. I believe dividend growth investing has a better potential of generating more cash-flow over the long run. I am not an old retiree in his 60s or 70s. Time is still on my side. So I can still afford to weather the storm and reap the rewards much later. No need to go into capital-preservation mode yet. These fixed income assets are not going to help me beat high inflation. Besides, my substantial CPF savings already formed the fixed income component of my portfolio.
Some people told me that they are just ‘parking’ their funds in fixed-income instrument for the short-term. Once their T-bills and fixed deposits mature, they can deploy the funds back into the market. Sure, they could get their timing absolutely right. Or horribly wrong. Maybe by the time they get their funds, the market already rallied way beyond their expectations. The boat left and they got stuck at the port. After merely one week, the banking system seems to have stabilised. Investors are already moving onto the next theme in the news cycle, which is the Fed pivot. This time last year, I remember everyone was super focused on the Russia-Ukraine war. After a year, nobody really cares about that anymore. This goes to show that time in market is always better than timing the market for long-term investors.
BTFD Still Works Thanks To Swift Bailouts
Even the usually bearish Michael Burry has respect for our generation. The generation of BTFD. In my opinion, BTFD works for the current generation of investors because the top policymakers currently running the US Federal Reserve still have PTSD of the 2008 GFC. Decision-makers like Jerome Powell and Janet Yellen are haunted by the collapse of Lehman Brothers and the near collapse of AIG. Banks are simply still too big to fail.
Lean On The Capable & Rich
I know my own limitations and capabilities, so I stay within my circle of competency. Let the management get on with their job and stay out of their way. Let the experts work their magic. Sit back, relax and watch the cash flow in. Benefit from the spending of others. Every time someone spends at a mall or shops online, I benefit indirectly because I am vested in retail and logistics REITs. Every time a property agent closes a deal, I get to benefit through PropNex. Every time a private doctor bills a wealthy patient at Mount Elizabeth hospital, I benefit through ParkwayLife REIT (PLife). The retrofitting and major renovations (Project Renaissance) at Mount Elizabeth are scheduled for completion by 2025. It will benefit from a huge rent step-up of 25.3% in 2026 after the completion of Project Renaissance. Use the economy as your personal ATM. An ATM that keeps on giving you cash.
Attractiveness Of Dividend Growth Investing
I give myself a pay raise every year. How? By investing in high quality dividend stocks. Imagine walking into your 9-5 job every morning, knowing that your passive income can cover your living expenses and more. That is the secret financial power I want to enjoy. There was a day when I was chilling at Starbucks with my dark mocha frappe after lunch. Logged into my bank account to see more than $1k dividends credited. It was a lovely feeling! As my dividend cashflow increases, my quality of life also improves. Finally completed my Apple ecosystem with the purchase of the MacBook Air and Airpods Pro!