Friday, February 20, 2015

Dividend Income Updates - Harvesting the Fruits in 2015

It seems almost just a couple of blinks ago that we celebrated Christmas and get everyone setting down their resolution for the new year. Unconsciously, we are already into the second month of the year and soon we will be heading into the third month.




Friends and readers of my blog would know that I am a big proponent of cashflow as compared to net worth. I chose to focus on cashflow because it is a direct income that allows me to dictate my own lifestyle at my own territory terms. My lifestyle revolves around the way I handle my working capital appropriately. If I have more flexibility in the income during the month, I usually level up my expenses a little bit to reward my familes (and myself). The incoming cashflow would come in the form of salary and dividend income while the cash outflow comes in the form of the daily expenditures. One fine day, I hope these dividend income would be sufficient to hit the crossover point, the point synonymous with financial independence and the freedom to free myself from the mundane corporate life I have been staying for the past 7 years.

When I did these regular updates of the dividend income, my main intention is to track the amount of these income received for my own future reference. The other intention is to provide some kind of inspiration for young starters who might not believe that this kind of passive income is completely possible in their lifetime. It is always much harder planting the seed when I just started out and much relieved harvesting the fruits of the labor when I look back at this point. Nevertheless, there's a long way to go for me so no slacking on that.

As the reporting season began to wine down, I have tabulated across the amount of dividend income I will be receiving for the month of February. Since I have pared down on selling some of the Reits in recent months, notably the likes of Ascott and Ascendas Hospitality Trust, the amount of dividend income received for this month will nowhere be as significant as the previous year. Still, this shouldn't be an excuse not to track down the amount of dividend income received.

Without further ado, I will receive a dividend income of $1,096 for the month of February. The breakdown is as follows:


CountersDividends (S$)
FraserCenterpoint Trust825.00
FraserCommercial Trust271.00
Total1,096.00


One of my goals for 2015 is to receive a dividend income of $18,000 for the year. This month's result is a good start at 6.1%, though it stretches somewhat an extremely long way to go to reach the target. With still another 10 months to go, I'll work to see how that plays along as we approaches closer to the end of the year.

How was this month dividend income for you? Did you get a good start to the year?


36 comments:

  1. Hi B,

    Very respectable amount of dividend for just 1 month! B, what's your take on starting out with a small capital? Should I immediately focus on dividend income, which produces a somewhat insignificant amount, or should my focus be on capital appreciation stocks that may/may not issue dividends?

    Should I grow my capital as fast as I can first so that my dividend income becomes more significant or should I just slowly add a little at a time without much capital to invest in other stocks that can provide me opportunity for capital appreciation?

    ReplyDelete
    Replies
    1. Hi Aloypro

      Thanks for your kind comment.

      You are doing a very good job yourself I can see that :)

      With regards to your question, I think it depends on one strategy. For me, I would prefer the dividend growing strategy with relatively clean and strong balance sheet and fcf generating ability. The reason is because for people who focuses on capital appreciation stock many times they do not know where to look at and will pay a premium to their fair value price. If they are paying it as undervalued then I will advocate that approach but many times people just want to chase a stock that has already priced in the growth.

      Dividends is usually paid out of profit earnings and for companies that are able to be prudent in managing their conservative payouts will have their share price increasing over time too.

      My 2 cents thoughts :) im sure others will have a different thoughts to that.

      Delete
    2. Thanks for the insightful response! I will definitely re-look on my strategy and decide which direction to move towards to from there!

      Delete
  2. The dividend is good enough to cover the outgoing ang pows!

    Regards,
    SG Wealth Builder
    www.sgwealthbuilder.com

    ReplyDelete
    Replies
    1. Hi Gerald

      Actually I think its to cover the amount of angpao given out but I hv called a rights issue by receiving the money back through my son :)

      Delete
    2. B

      Happy CNY ah , gong xi gong xi ;)

      Delete
  3. Hi there. I share the same views of investing for cash flow to asset prices.

    18kpa dividends, at 5%pa, your portfolio could be a respectable 360k and still growing!!!

    Happy CNY!!!

    ReplyDelete
    Replies
    1. Hi Paul

      Thanks for sharing on your preferred strategy method.

      Actually ive estimated a yield slightly higherthan 5%, I think at 5.2% so I would require slightly lesser capital to that :)

      Delete
  4. Hi B,

    For your case, it's just a matter of when and not if that crossover point happens.

    But the way you say it about young starters is a bit amusing although I understand what you mean but You are also very "young" lor looking at your photos, most prob in the early 30s given only 7 Coporate years to achieve what you have now. (No mean feat)

    I do see many at crossover points doing a switch to teaching or VP admin. Maybe one fine day, we might be colleagues. LOL.

    ReplyDelete
    Replies
    1. Hi SI

      I am seriously considering switching to a teaching role not too long from now. I hold you to that hope you can show mercy if we somehow cross path.

      Thanks for your encouragement about the crossover point. I think many of the bloggers here including yourself should have no problem hitting the crossover point one day so it will only be a matter of when.

      Delete
  5. Good start for the year for me too! Huat ah! :)

    ReplyDelete
  6. Hi B, it's always nice to have money in the bag at the start of the year. You already have the right mentality to reach the crossover point and I'm sure you will get there at a pace dictated by yourself that balances your values and the needs of your loved ones.

    ReplyDelete
    Replies
    1. Hi Retailtrader

      Thanks for your kind support as always.

      I really hope looking back at this at some point later I will see many of my fellow bloggers achieving the same goals as me when we eventually become wiser and better financial independence. Lets work together to make that happen!!!

      Delete
  7. Congrats! That's enough to cover my expenses!

    ReplyDelete
    Replies
    1. Hi Henry

      Thanks.

      Thats not enough to cover my whole family expenses but surely give me a nice buffer to pay for some of those expenses.

      Delete
  8. Hi B,

    Hope you achieve your target in 10 months time!

    $18K a year is really a substantial amount and should easily be able to cover a meaningful fraction of your family's expenses.

    ReplyDelete
    Replies
    1. Hi 15hww

      Thanks for the encouragement.

      Actually I think its going to be difficult for this year because like yourself I am accumulating some cash and will slow down on the purchase so unless I really see some good deal otherwise I will stick to my cash holdings.

      Delete
  9. Hi B, is your portfolio amount before or after factoring cost of housing?

    ReplyDelete
    Replies
    1. Hi J Tan

      Thanks for your comment.

      I know some of the other bloggers who put out the whole asset allocation out there but in my blog I prefer to focus only on the equity or bond, if any allocation.

      Any housing, cash or social security contribution are taken as private which I am not comfortable sharing out.

      In my blog I am only focusing on the

      Delete
  10. Hi B,

    Wah, huat ah ;)

    Hmm, if you want to be a teacher, why do you take up all the MBA and all the other qualifications? Is it worth the investment?

    ReplyDelete
  11. Hi LP

    I guess when I decide to take the MBA part time, I wanted it more for learning purpose than for anything else. In my class, at least more than two third did not do it because of career progression. I wasn't going to plan that anyway if I am confident I'll reach FI by 35 anyway :)

    Something about teaching is still something I had always wanted to try but never had a chance to try them. I don't even know if it ever fits me but hopefully it will one day if I got that chance to do teaching as a career :)

    ReplyDelete
  12. Hi B,

    I see :) I would have thought it's for others to see, cos if u just wanted to learn, you can do it privately at your own leisure :)

    I guess the good thing about being ff, is that you can do what you want to do. Just try it out. You might like teaching, no harm trying :)

    ReplyDelete
    Replies
    1. Hi LP

      Something about learning privately on your own, you are one of my wide circle of friends that can do it on your own. Trust me, out of 100 people, only 1 can really stretch themselves to learn properly and self improve. Sometimes, the cane is necessary to push people beyond their circle of comfort.

      I might take a lesson from you regarding teaching one of these days. Maybe I'll learn a tips or two :)

      Delete
  13. Hi B,

    I am currently a teacher but I feel that there is no time for me to monitor the market. I have tried to invest in my earlier years but lost about 5 figures thus far. Looking at your blog really inspires me.

    My dividend income is at most half of your projected dividend. What dividend counters do you recommend seeing that most reits are sky high now?

    Furthermore do you use your CPF to invest as well?

    You are truly an inspiration to many. Hope to be able to learn some tips from you as well.

    JL

    ReplyDelete
    Replies
    1. Hi Inquisito

      Many thanks for your kind words. Really appreciate it.

      You are right. Market is rather high right now and we are all having difficulties finding an undervalued stocks that could yield us great returns in the long run. I am still looking out though it's getting harder so I am building up cash position at the same time.

      I don't generally use my CPF to invest. I think they generate very good returns for a relatively risk free profile investment and I am very satisfied with that. There's no use taking on higher risk for a slightly higher returns than what they are already giving :)

      Delete
  14. Hi B!

    That is a nice dividend income! My goal is to get $1,000 in dividends per month and it seems that you have already achieved it. Keep up the awesome work!

    ReplyDelete
    Replies
    1. Hi Jeff

      Thanks for your kind comment as always.

      Im still some miles away from the goal but the progress is going into the right directionso no complaints for me.

      Delete
  15. Jan is not a good month I got $0 dividend as I didn't buy any stock paying dividend in Jan. Feb will be a better month as I'm doing the approach of buying stocks that soon will go ex-dividend until the end of this year, it will be choppy monthly payment. Rental goes great through, I finally got all of the vacant units filled. But one want to move out, but still paying rent until I find a replacement for her.

    ReplyDelete
    Replies
    1. Hi Vivianne

      Just curious on whether it is easier over there to do rental over investing in stock? Also is the rental yield better than the average stock yield there?

      Delete
  16. Buy stocks even before they announce CD date. Might gain more!
    Happy cny

    ReplyDelete
    Replies
    1. Hi Paul

      That's one strategies that I've seen some people use to buy and sell.

      Delete
  17. B,

    Excellent dividend income for February! If I earned that much I'd be FI already. :)

    Hope you get to your 18,000 goal for this year, but I have no doubt in my mind that you won't.

    Good luck,
    NMW

    ReplyDelete
    Replies
    1. Hi NMW

      Thanks for your encouragement.

      Things are different when I have a few mouths to feed here :D

      Delete
  18. Well done on your Feb dividend income! I wish I had similar income soon....

    ReplyDelete
    Replies
    1. Hi David

      Thanks for your compliment!!!

      Delete

UA-57154194-1