Monday, December 27, 2010

December 2010 Dividends Portfolio Update

No.  Stock Lots Dividends Collected Average Price
1.  SPH 3 $600 $3.71
2.  Starhub 6 $850 $2.27
3.  M1 3 $0.00 $2.210
4.  UOB KayHian 3 $0.00 $1.67
5.  Singapore Post 2 $0.00 $1.15
6.  Capitamall Trust 3 $278.40 $1.70
7.  Suntec REIT 2 $262.40 $1.33
8.  CACHE Logistics Trust 3 $73.00 $0.950
9.  CitySpring Infrastructure  Trust 3 $94.50 $0.61
10.  K-Green Trust 3 $0.00 $1.087
11.   First Ship Lease 10 $61.55 $0.455
12.  Parkway Life REIT 1 $0.00 $1.620
13.  First REIT 3 $0.00 $0.675

*Note: Blue-coloured stocks are blue chips on the Straits Times Index

Total dividend collected $2,368
Total Invested Capital $62,577
Dividend over Capital (%) 3.78%
Dividends per month (2010) $197.33

As shown in the table above, I have loaded up 2 lots of Singpost at $1.15 and 3 lots of First REIT at $0.675 in December 2010. At first, I considered focusing all my resources either on Singpost or First REIT. Both counters were experiencing a dip (XD for Singpost and Rights Issue for First REIT). In the end, I decided to spread my resources and got both. I am glad I did because Singpost will give my portfolio a stronger "foundation" while First REIT provides attractive yield and exposure to the strong medical industry growth.

Most of my counters are performing fine in December. The exceptions are CitySpring and K-Green, both of which are still in the red. But I decided against averaging down because I do not want to increase my holdings in both counters at the moment.

I received $300 from Starhub, $31.50 from CitySpring, $61.55 from FSL and $600 from SPH. As a result, passive income increased to $197.33 per month for the entire year 2010. This figure is calculated through dividing the total dividends received by 12 months.

Looking Forward:
My objective of "More Quality, Less Quantity" will stay. I will elaborate more about this in my "Financial Resolutions for 2011" post. 

I would like to wish everyone a Prosperous and Happy New Year! :)

Please feel free to share your opinions by commenting below :)

Dividends Warrior,
Peace Out

Tuesday, December 21, 2010

Marina Bay Sands Stay-cation

How does one become wealthy? Well, many people will say "Earn, Save, Invest", then rinse and repeat the process again. However, I feel that something is missing. Yup, you guess it. The word "Spend" is missing. If a person is obsessed with "Earn, Save, Invest", he will become a scrooge.

Do not misunderstand me. I am not encouraging mindless consumerism, shallow materialism and impulse buying. I am talking about spending within one's means and not chalking up huge credit card debts. Sometimes, you need to reward yourself after working so hard over the year, albeit sensibly. 

Having said all that, I just wanna share my year-end stay-cation at Marina Bay Sands, Singapore. It was a great experience at the six-star hotel. Here comes the photo sharing :)

We checked in at night and went straight up to the Sky Park. The scenery was breathtaking!

We visited Hermes. The sales personnel was polite and helpful even though we did not buy anything. Kudos to them :)

Had dim sum for breakfast at a food-court called "Rasapura" (I hope I spelt that correctly :P )
The siew-mai, braised chicken feet (the flesh slid off the bone effortlessly) and har gao taste good. Char Siew bun is rather average.

After breakfast, we went up to the Sky Park again. Rather misty and windy. I went to the jacuzzi (I am scared of cold -__-") while my family relaxed in the pool. There is a cordoned area just for the VIPs. 

I am not a good photographer. These are the only better-quality photos that I took without my family members and I being inside. I will try to improve my photography skills.

I am definitely going back to Marina Bay Sands. Two things I wanna try on my 2nd visit. 1) Chocolate buffet at the Sky Park. 2) Fine dining at "CUT", a restaurant owned by celebrity chef, Wolfgang Puck. 

Time to start saving up.

As for details on room rates, facilities, services and events, you can check out the website below. I do not wanna bore you with the details.
Marina Bay Sands < Click Click :)

Total damage to wallet is about $450. I feel it is a little pricey, but I am happy with the quality of facilities, service and food.

Finally, I will like to wish everyone Merry, Merry Christmas and a Happy New Year :)

Peace Out,
Dividends Warrior

Friday, December 10, 2010

November 2010 Growth Stocks Update

No. StockLotsDividends CollectedAverage Price

1. Capitaland2$0.00 $3.73

Realised Profit: $160

Last month, I have sold off all 20 lots of Advanced SCT and 1 lot of Noble Group at a small net profit of $160 after deducting brokerage fees. Then, I went hunting again for growth stocks.

My original plan was to scoop up a few lots of Genting SP at around $1.95 after it announced a drop in profits. Unfortunately, my target price was not met.

In the end, I added 2 lots of Capitaland at $3.73 as this counter had triggered my target price. This is a good opportunity for me to load up for the "Capricorn Effect" and Chinese New Year rally in 2011.

China is expected to raise bank reserves requirement and interest rates soon in order to fight high inflation rate. This will have a negative impact on property prices in China. Therefore, my next entry price for Capitaland will be around $3.50 if there is a sudden, knee-jerk reaction in the near future.

My target selling price for Capitaland is between $4 and $4.10, depending on market conditions. 

Genting SP and Noble Group will still be under my watch list in 2011.

Do you have any growth stocks which you will be tracking in 2011? Please share by commenting below :)

Peace Out,
Dividend Warrior

Sunday, November 28, 2010

November 2010 Dividends Portfolio Update

No. StockLotsDividends CollectedAverage PriceNet Price
1) SPH3$0.00 $3.71
2) Starhub6$550 $2.27 $2.18
3) M13$0.00 $2.210
4) UOB KayHian3$0.00 $1.67
5) Capitamall Trust3$278.40 $1.70 $1.61
6) Suntec REIT2$262.40 $1.33 $1.20
7) CACHE Logistics
3$73.00 $0.950 $0.925
8) CitySpring
 Infrastructure Trust
3$63.00 $0.61 $0.59
9) K-Green Trust3$0.00 $1.087
10) Saizen REIT3$7.80 $0.16 $0.16
11) First Ship Lease10$61.55 $0.455 $0.45
12) Parkway Life REIT1$0.00 $1.620

Total dividend collected:$1,437
Total Invested Capital:$58,732
Dividend over Capital: 2.45%
Total Capital Appreciation: $4445

*Note: Blue-coloured stocks are blue chips :P, Green-coloured stocks are REITs / Trusts 

November was a rewarding and fruitful month for me. The dividends had started to roll in again. I received $255.39 in total from Capitamall Trust, Suntec REIT, CACHE, and First Ship Lease. Nom...nom...nom... yummy dividends! >_<

As shown in my previous posts, my holdings in FSL, K-Green, CACHE and UOB KayHian have increased. I have also added PLife REIT into the portfolio as my first healthcare stock. 

Gonna reap more dividends in 2011!

However, capital appreciation has declined compared to last month.

Looking Forward to December 2010:
December is going to be even more bountiful for me. I will be getting dividends from SPH, Starhub and CitySpring. 

It feels really great and satisfying to see my passive income stream growing bigger every year :)

Year-end bonus gonna boost my cash reserves substantially. I will probably start conserving cash in the next few months and wait for opportunities to enter the market again.

Please let me know your thoughts by commenting below.

Peace out,
Dividends Warrior

Wednesday, November 17, 2010

Loaded Parkway Life REIT, CACHE Logistics Trust and First Ship Lease

In my previous post, I said that medical counters will be my new acquisition targets. Yesterday, I decided to load up on Parkway Life REIT. Besides that, I also increase my stake in First Ship Lease (FSL) and CACHE Logistics Trust (CLT).

This post will focus on CLT and Parkway Life REIT.

CACHE Logistics Trust:

I loaded 1 lot of CLT at $0.96 because

1) The warehouses under CLT are not those conventional ones. CLT's warehouses are custom-built and sophisticated, catering to the needs of its tenants who are mainly multi-national corporations. Therefore, the demand for CLT's facilities will remain strong. These warehouses are also strategically located near to the airport.

CWT Commodity Hub – the largest warehouse in Singapore and one of the largest in Southeast Asia

CWT Cold Hub – the first and only ramp-up cold storage warehouse and one of the largest and newest cold storage facilities in Singapore

Schenker Megahub – the largest freight and logistics property located at the Airport Logistics Park of Singapore

Hi-Speed Logistics Centre – a modern, highly functional logistics facility located at the Airport Logistics Park of Singapore

C&P Changi Districentre – a modern ramp-up warehouse facility boasting excellent specifications and the one of only two ramp-up warehouses in Changi International LogisPark (South)

C&P Changi Districentre 2 – a highly functional cargo lift logistics facility located within the Changi International LogisPark (South)

2) At the current price, the yield is between 7% to 8%. Compared to other industrial/logistics REITs, the yield seems more attractive for me. However, CLT will only distribute 100% of its cash in 2010 and 2011. The distribution per unit might drop to 90% in 2012, thus decreasing the yield. Therefore, I will not add more CLT if the price is more than $0.96

3) CLT is managed by ARA which has a strong track record managing Suntec REIT. CLT also has a reliable parent in the form of CWT which specialises in logistics warehouses.

Parkway Life REIT:

I loaded 1 lot of Parkway Life REIT at $1.62 because......

1) Singapore has a rapidly aging population. People will need more medical facilities and nursing homes. As a result, the occupancy rates at hospitals will be close to 100%. Furthermore, the medical and health business in Singapore will continue to prosper as more wealthy medical tourists in the SEA region seek medical services here. The supporting evidence can be found in the links below.

The Coming Silver Tsunami < Click 

2) To further diversify my REIT portfolio. I have retail, office and industrial/logistics REITs. Therefore, a medical/hospital REIT will strengthen my portfolio. 

3) Even if the market undergoes a correction, medical counters will not fall that much because people will still need to visit the doctor when they are ill. 

My next target will be First REIT. The price will most probably drop after its rights issue.

Please leave your comments below :)

Dividends Warrior,
Peace Out

Friday, November 12, 2010

Loaded UOB KayHian, First Ship Lease and K-Green Trust

Yesterday, I increased my holdings in UOB KayHian, First Ship Lease (FSL) and K-Green Trust (KGT).
Besides the market showing some weakness, these are my other reasons for loading the 3 stocks.

UOB KayHian (Financials):
I have always wanted to have a "financials" stock in my portfolio. However, I am not rich enough to buy DBS, UOB and OCBC ( Should have bought during the 2008 financial crisis -__-" UrgHHH!)

UOB KayHian fits the bill because 1) the company has been paying regular, reasonable dividends over many years. 2) the company has UOB as support. 3) I can afford the stock :)

I think this stock still has quite a lot of upside potential. I loaded 2 more lots of UOB KayHian at $1.75
I am trying to diversify my REIT-heavy and blue-chip heavy portfolio.

You can check out their dividends history on the SGX website

FSL (Shipping):
I loaded 3 more lots of FSL at $0.45 because 1) the 10% yield it offers is still pretty attractive. 2) the DPU will probably increase in the future as the 2 arrested ships get leased out.

KGT (Utilities):
I loaded 2 more lots of KGT at $1.08 because 1) based on the projected DPU for 2011, the yield will be around 7%, which is reasonable for me. 2) KGT is in the business of energy-generating (Power stations), water treatment (Newater) and Green technologies. 3) the company has a strong parent in the form of Keppel Corp.

During the most severe economic crisis, Singaporeans still need energy from Power Stations to supply electricity to their homes. The Power Plant at Tuas (above) uses the most advance "Waste-to-Energy" techniques to generate electricity.

During the most severe economic crisis, Singaporeans still need to drink, shower and even flush the toilet bowl. The Newater Plant at Ulu Pandan (above) is the biggest and latest yet in Singapore.

The Singapore government will not shut down the power stations and Newater plant. Furthermore, Singapore is country that face the problem of water scarcity. Therefore, the government will most definitely do business with KGT in the long-term.

You can check out KGT's prospectus on the SGX website

So, that's my latest foray into the stock market in order to diversify and boost my dividends portfolio.

Please let me know your thoughts by commenting below.

Peace out :)

Wednesday, November 10, 2010

October 2010 Growth Stocks Update

No.  Stock Lots Dividends Collected Average Price Net Price

1)  Advance SCT 20 $0.00 $0.05
2)  Noble Group 1 $0.00 $1.74

Capital Appreciation: $260

Besides having a diversified portfolio  of income-generating stocks, I also have 2 growth stocks. They are Advanced SCT and Noble Group.

I know what most of you are thinking right now. You are probably sniggering, "Muahahahahah! So little. Cannot earn much."

It's alright. Most of my colleagues do that to me too -__-"

Well, I know I am quite a conservative investor. That's just the way I am.
I cannot bring myself to invest heavily in a stock that does not pay regular dividends and provide a healthy yield of more than 7%.

Is my way of thinking flawed? Should I change my mindset?

I am looking to go into Medical stocks soon. Still pondering : /

Please let me know your thoughts by commenting below.

Peace out :)

Monday, November 8, 2010

U.S.A. is drowning in debt

This post serves as a "sequel" to the my earlier post on the Credit Crisis.

The U.S.A. is drowning in debt. The Americans are spending away the futures of their children and grandchildren.

The video below shows just how bad the situation is. I think it is quite frightening.

(This video is the property of "stop spending our")

The Federal Reserves chairman, Ben Bernanke, has just announced another round of stimulus. To put it simply, they just keep on printing the US dollar. The market is flooded with US dollar and this devalues it. Interest rates will remain close to zero for an extended period of time. This increases the risk of asset bubbles forming in emerging markets such as China and India.

Will the US do a "Greece"? I hope not. The US Treasuries still enjoy the highest "AAA" rating.

So how did I protect myself from such a scenario? I predict the price of gold will continue to rise in the future.

I bought 2 pieces of gold coins from UOB last year. A Canadian Mapleleaf gold coin (half ounce) and an Australian Kangaroo gold coin (half ounce). I wanted to buy the Singapore Lion gold coin but the price has already skyrocketed. -__-" sighz...... So I only have 2 beautifully shiny gold coins to hedge against any hyperinflation :)

I also have some commodity stocks such as Noble Group and Advanced SCT (Scrap copper)

Let me know your thoughts by commenting below.

Dividends Warrior,
Peace Out :)

October 2010 Dividends Portfolio Update

No. StockLotsDividends CollectedAverage PriceNet Price
1) SPH3$0.00 $3.71
2)  Starhub6$550 $2.27 $2.18
3) Capitamall Trust3$207.60 $1.70 $1.63
4) Suntec REIT2$212.36 $1.33 $1.22
5) CACHE Logistics Trust2$0.00 $0.945
 CitySpring Infrastructure
3$63.00 $0.61 $0.59
7) UOB KayHian1$0.00 $1.48
8) K-Green Trust1$0.00 $1.10
9) Saizen REIT3$7.80 $0.16 $0.16
10) First Ship Lease5$0.00 $0.465
11) M13$0.00 $2.210

Total dividend collected:$1,181
Total Invested Capital:$48,245
Dividend over Capital: 2.45%
Total Capital Appreciation: $5921

Since this is the first time I am showing my Dividends Portfolio, allow me to do some explanation. The "Net Price" is calculated after deducting the dividends collected from the "Average Price" of each stock.
My portfolio consists of strong, defensive blue chips such as SPH, Starhub, M1 and Capitamall Trust. The rest are REITS and a shipping trust.

The total dividends I have receive so far is $1181.

Looking Forward to November:
I am expecting dividends from Capitamall Trust, Suntec REIT, CACHE Logistic Trust and First Ship Lease. 

Yummy Yummy dividends. Slow and steady wins the race! :)

Now that I have revealed my Dividends Portfolio, feel free to post your comments below. 

Sunday, November 7, 2010

How the 2008 Sub-Prime Crisis Happened?

The 2008 credit crisis that originated in the U.S.A. resulted in the Great Recession. Even till today, the US economy is still sluggish despite two massive stimulus package from the Federal Reserves.

So how did the credit crisis happened? Today, even if you go to Shenton Way and ask the bankers, most of them will probably not be able to explain how the sub-prime bubble burst.

Therefore, I hope to educate and enlighten my readers on the 2008 "Sub-prime Crisis" in the US.

The video below is an excellent illustration of the crisis. (The graphics and animations are fantastic! >_<)

The "Crisis of Credit" video is owned by Jonathan Jarvis.

Allow me to break down the story/ events:

1. Between 2004 and 2007, American banks started to lend money to people who do not have healthy financial status. The type of mortgages were called "Sub-Prime Mortgages" because they are "sub-standard". I am going to call these homeowners the "Cannot-make-it-homeowners". (Way to go.......greedy American banks -__- " )

2. The banks then re-package these sub-prime mortgages into investment-grade (AAA rated) instruments called "Credit Default Swaps" or CDOs. The global giant insurance company AIG went really deep into these CDOs. Millions of CDOs were sold to retail and institutional investors. (Our very own DBS and various Town Councils bought alot too.....sighz -__- " )

3. Everything was fine at first. The homeowners were paying their loans, the investors are getting their returns and the bankers earned huge salaries.

4. However, the nightmare scenario occurred. The "Cannot-make-it-homeowners" could not pay their mortgages. 
The investors lost a huge amount of their fortunes and the banks (Lehman Brothers) collapsed. 

5. In the end, banks stop lending money to one another and to other businesses. The global credit crisis began.

My Thoughts and Reflections:

I personally feel that the ultimate cause of all these unfortunate series of events is "Human Greed". The banks were greedy. The homeowners were greedy. The investors were greedy. The insurance companies were greedy. The ratings agencies were greedy. The lawyers were greedy. Everyone wanted a piece of the pie, and the bigger the better. In the end, everyone over-leveraged and the bubble burst.

I will always use this crisis to remind myself not to be greedy and over-leverage my investment. I have resisted the temptations of getting a credit card many times. Some of my peers even said, "How can you not have a credit card?!!!!"


Anyway, is greed really good for us? Will such a crisis happened again? Will we learn our lesson? 
How do you prepare your portfolio for such crisis?

Let me know your views by posting below.