Sep 2011 Dividend Portfolio Update

No.	Stock	Lots	Average Price	% of Portfolio
1	SPH	7	$3.756	23.54%
2	Starhub	9	$2.404	19.37%
3	M1	5	$2.290	10.25%
4	Singtel	5	$2.920	13.07%
5	SMRT	2	$1.805	3.23%
6	F & N	1	$5.370	4.81%
7	Capitamall Trust	3	$1.70	4.57%
8	Suntec REIT	2	$1.33	2.38%
9	Frasers Centrepoint Trust	5	$1.44	6.45%
10	AIMS AIMP REIT	25	$0.204	4.57%
11	CACHE Logistics Trust	3	$0.950	2.55%
12	First REIT	8	$0.728	5.21%

Portfolio Breakdown:
Green: Telcos (44.3%)
Blue: Conglomerates (29.42%)
Orange: REITs (22.93%)
Red: Transport (3.35%)

Total dividends collected     (since Jan 2010)	S$7,776.25
Total Invested Capital	S$111,692
Annual Dividend Yield (%)	6% - 7%
Dividends per month	S$388.80
Realised capital gain/loss (since Jan 2010)	S$5, 607
Unrealised capital gain/loss (since Jan 2010)	S$6, 463
Investment Funds	S$3,100

I decided to post my portfolio update earlier because I do not think I will be making any changes this month. For the month of September, I received S$300 from Starhub. Dividends per month dropped a little to S$388.80 as Starhub is the only company in my portfolio that paid dividends in September. Total investment funds increased slightly to S$3, 100.

Thanks to some suggestions from my readers, I have added some new data to my update. Firstly, the breakdown of my portfolio according to various economic sectors. Secondly, my realised and unrealised gain/loss since January 2010. 

Looking Forward:

Nothing new, really. I will continue to build up my investment funds while monitoring a few blue chips closely. If the prices become really, really attractive (>30% drop from its 52-week high), I will consider adding to my portfolio again. October will be an unusually lean month for me as no company in my portfolio is paying out dividends. T T

Peace Out,

Dividend Warrior

The Magic of Compounding Dividend

In the past, I would spend my dividends on food, clothing and entertainment. My initial investment aim is to create a dividend portfolio that generates enough passive income to cover my daily expenses while preserving my capital. However, a fellow financial blogger advise me to re-invest more of my dividends. Therefore, I have moved towards a new investment aim.


"To generate enough passive income to live off on and still have money left for investment. Make my money work harder for me."

Compound Dividends:
In order to fulfill my investment aim. I decided to use the power of compounding as Albert Einstein once said that it is the most powerful force on Earth. If you think the effect of compound interest is great, then compound dividends is like "compound interest on steroids". Without further ado, I shall share 2 compound dividends plans below.


Version 1:

Year Capital (S$) Capital + Dividends (S$) Dividends (S$) 2012 107,000 114,490 7,490 2013 114,490 122,504 8,014 2014 122,504 131,080 8,575 2015 131,080 140,255 9,176 2016 140,255 150,073 9,818 2017 150,073 160,578 10,505 2018 160,578 171,819 11,240 2019 171,819 183,846 12,027 2020 183,846 196,715 12,869

*Calculations are done based on an annual dividend yield of 7%.


Version 1 is a pure dividend re-investment plan. I will only use the dividends received every year to re-invest in dividend stocks. I do not need to fork out a single cent from my pockets. Therefore I can maintain a larger cash buffer. However, this process is rather slow. I will only reach S$12K in annual passive income at 36 years old!  




Version 2:

Year	Capital (S$)	Capital + Dividends (S$)	Dividends + Capital Injections (S$)
2012	107000	122000	15000
2013	122000	137000	15000
2014	137000	152000	15000
2015	152000	167000	15000
2016	167000	182000	15000

*Calculations are done based on an annual dividend yield of 7% plus capital injections.


Version 2 is an accelerated form of the first. I will combine the dividends received with my own funds in order to reach S$15K for re-investment. This will speed up the compounding effect. By the end of 2016, I will achieve a dividend portfolio size of S$180K, at an age of 33 years old. However, this version requires me to be more disciplined in my spending and more aggressive in my savings. Secondly, I will have a smaller cash buffer. 


Conclusion:
Version 1 is slow but safe. Version 2 is faster but riskier. I am leaning slightly towards Version 2 because I do not own a car or property, therefore no loans and mortgages to service. I believe I am not a spendthrift either. Therefore, spare cash will be available for investment. Of course, another way is to find higher yielding stocks. However, it is difficult to find blue chips that are yielding consistently above 7%, except Starhub. 




So, if you are in my shoes, which version will you choose? Or you have a better plan than my ones? Please comment below. ^^




Peace Out,
Dividend Warrior

August 2011 Dividend Portfolio Update

No.	Stock	Lots	Dividends Collected	Average Price	% of Portfolio
1	SPH	7	$810.00	$3.756	24.43%
2	Starhub	9	$1,450	$2.404	20.10%
3	M1	5	$890.00	$2.29	10.64%
4	Singtel	5	$950.00	$2.92	13.56%
5	SMRT	2	$0.00	$1.805	3.35%
6	F & N	1	$0.00	$5.37	4.99%
7	Capitamall Trust	3	$488.70	$1.70	4.74%
8	Suntec REIT	2	$409.12	$1.33	2.47%
9	Frasers Centrepoint Trust	5	$39.00	$1.44	6.69%
10	AIMS AIMP REIT	5	$0.00	$0.21	0.98%
11	CACHE Logistics Trust	3	$252.28	$0.95	2.65%
12	First REIT	8	$278.90	$0.728	5.41%

Green: Telcos (44.3%)
Blue: Conglomerates (29.42%)
Orange: REITs (22.93%)
Red: Transport (3.35%)

Total dividends collected     (since Jan 2010)	$7,476.25
Total Invested Capital	$107,642
Annual Yield	6% - 7%
Dividends per month	$393.50
Investment Fund	$2,700

In the volatile month of August, I received S$1, 924.42 in total dividends. The special dividends from Singtel is especially juicy! ^^

• Keppel Corp: S$170
• M1: S$330
• Singtel: $950
• CapitaMall Trust: S$70.80
• Suntec REIT: S$50.64
• First REIT: S$126.40
• CACHE: S$62.58
• Frasers Centepoint Trust: S$39

Dividends received per month leapt to S$393.50. However, my investment fund has diminished significantly to about S$2, 700 due to some rebalancing of my portfolio. I divested from Singpost, UOB Kayhian and Keppel Corp. I used a portion of the money to pay for my Dad's medical bill (He is recuperating well from his surgery). Next, I also accumulated more SPH, Starhub, F&N, AIMS AIMP REIT and Frasers Centrepoint Trust. 

My current top 5 holdings are:

1. SPH
2. Starhub
3. Singtel
4. M1
5. Frasers Centrepoint Trust

Looking Forward:

I think I am quite done with accumulating stocks for 2011. I am gonna start building up my investment fund in preparation for the usual, customary summer correction next year.The Euro debt crisis and US debt ceiling will probably rear its ugly head again next summer. I am also working on a plan to compound my dividends over the next few years. Will be sharing it once I iron out the details.

Peace Out,

Dividend Warrior