Saturday, February 27, 2016

Dividend Income Update - 1st Quarter 2016

As previously mentioned in the last quarterly update, this will be an attempt to try and provide a quarterly dividend income update to see on how it is progressing so I can have a clearer year to year comparison moving forward.

For those who are new readers to my blog, dividend investing is a big part of my investing strategy because the end goal is for me to achieve sufficient income to cover my expenses. That is when I declared myself financially independent.




Having said that, that does not mean that I will go for the highest dividend yield counters I can find out there. What I need is sustainable dividend payout and prudent management such that it will continue to support me as I grow older each year and not having to worry about whether the dividends will be coming in or not. Make no mistake, I still continue to monitor my portfolio very closely each time.

I love dividends because they are hard cold cash which the company earns that they choose to give back to shareholders. I'll take it as if I am putting my hard earned money in a company which gives out profit share once they make profits. The other reason I like about dividends is they are automatically deposited into my account without having the need to have my presence at a particular time in a particular place. A good management will take care of all these hassles which employees dread about.

The 1st quarter dividend income came to $3,056 which I think was pretty good as they are not traditionally a strong quarter to begin with. I don't have any particular to where the money should be spent on so they will most likely be reinvested in the stock market to accumulate more dividends in years to come. I think this should be the right cycle to kick things off especially in a bear market where we are right now.


CountersDividends (S$)Payable Date
Ireit970.029-Mar-16
Nam Lee Metals875.022-Feb-16
CapitalCommercial Trust339.025-Feb-16
FraserCenterpoint Trust377.029-Feb-16
Keppel DC Reit328.029-Feb-16
First Reit167.029-Feb-16
Total3,056.0


For those who are just starting out, this may be one of those strategies which you can try out. The hardwork is always in the beginning but once the fruits is harvested, the rest of the gratification should come in pretty nicely later.


25 comments:

  1. Hi there!

    wanted to ask your opinion about your position on Ho Bee Land?

    With the looming fear of Brexit, and the weakening of the pound, do you still see Ho Bee as a viable investment?

    ReplyDelete
    Replies
    1. Hi Anonymous

      Apologies for the delay as I was away last week on holiday when you messaged me about Ho Bee.

      My take about Ho Bee is still valid as they are ramping up on a strategy that I like with potential rental reversion and redevelopment plans to come in the medium to long term.

      Sure, the Brexit fear is going to send the pound down and they will impact the earnings which will be converted to SGD. But on a bigger scale, I think such are macro news which we can't really control regarding the situation. If it doesn't materialize, then it might not be valid, just like the past year scotland and spain referendum.

      Delete
    2. Hi there,

      Thanks for your reply! So I guess there's nothing much to worry about on its debt?

      Delete
    3. I think if you look them like a Reit, their gearing level are about like 36%, which is pretty common to many reits out there.

      I still don't think there's much room to worry, plus Chua has been buying back the shares a lot, most recently today again at average price of $1.90.

      Delete
    4. Hi there!

      Thanks for the reply. Last question though on this.

      I like the model and direction they're heading, where they're moving towards rental. If that's the case, do you think they will:

      a. Increase dividends, similar to a reit?

      b. IPO a reit?

      Delete
    5. Hi

      I see a few catalysts from Ho Bee.

      1.) Privatization is in the outlook, not only from the company itself but if UOL managed to privatize UIC which I think is pretty soon, it will give a huge boost to Ho Bee as well.

      2.) If they don't privatize, it looks most likely sensible that they did a Reit out of it since they are now geared and structured like a Reit and by doing so they can save taxes and recycle capital.

      3.) I have computed the rentals from its investment properties and it comes in at 10 cents/share. Together with the sale of development properties in China and AU, FY16 is going to be a very good year.

      4.) Chua has been buying on the open market almost as frequently as I've seen him does it. I think this bodes well since it appears that the stock is undervalued.

      Delete
  2. Hello!

    Do you still have your counter in Kingsmen? There is also dividend for this counter which you did not seem to have included :O

    Also, what are your opinions on Kingsmen's latest results and if it is still worthwhile to stay invested.

    Thanks!

    ReplyDelete
    Replies
    1. Hi Anonymous

      Yes, I still have Kingsmen and in fact I have just added them more last Friday at 62 cents.

      The reason why I'm not putting in the dividends in this quarter is because they will be paid out in May, so they'll go to my 2nd Quarter dividend updates.

      Regarding Kingsmen latest results, I thought their 4th quarter was strong, despite taking out the one-off gain from the listing of the Thai Associates. They do have a typical strong 4th quarter, but I was more looking towards how they mitigate with the potential slowdown from the luxury brand segments. Exhibitions and Museums will continue to perform so I think they'll mitigate the weakness in the luxury brand segment for now.

      Overall, my take on this is they are more of a victim from the slowdown of an overall economy rather than structural issues, therefore I have added more on opportunities during this weakness period.

      Delete
  3. Best if you would provide investment value so we know how much we need to have similar return.

    ReplyDelete
    Replies
    1. Hi Chen

      Not sure what you meant by that.

      I usually provide an update of how much I owned for my portfolio so it's just a matter of multiplication from there, pretty straightforward in my opinion.

      Delete
  4. Best if you would provide investment value so we know how much we need to have similar return.

    ReplyDelete
  5. does nam lee give out such good divd? considering it is only a small % of your portfolio, it looks like close to 10% divd?

    ReplyDelete
    Replies
    1. Hi Fooztreasures

      Yeah, they gave quite a decent one this FY, so the yield is around 8%, let's hope they continue the momentum from last year earnings into this year as well.

      Delete
  6. thanks B.
    i am trying to look for your coverage/write up/discussion for nam lee (if any). but i realise there is no search function within your blog?

    ReplyDelete
    Replies
    1. Hi fooztreasures

      I actually wanted to write about their full year results and the recent AGM which I went, but laziness took out of me :)

      Delete
    2. haha.. i know what you mean, i actually started a wordpress blog, about my own investments too, but ran out of steam halfway.. i just thought it will be interesting to get views from the other investment gurus out there. portfolio not as resilient as yours... but contented with my 5digit divd income stream (for now)

      Delete
  7. Hi B,

    My dividend income for the 1st quarter is quite comparable with last year. However, Some of the companies in my portfolio which have announce their dividend that will be paid in May have announced less dividend than last year. I am expecting some reduction in the dividend income from 2nd quarter onwards. Let's see...

    ReplyDelete
    Replies
    1. Hi Sanye

      You must be referring to your O&G counters which has some dividends cut.

      In any case, you've got a standard way of adding to stocks little by little each month until it snowballs to where you are now. That's commendable approach from you.

      Delete
  8. Hi B,

    Like I, I also like dividends. But before having a singificant dividend, perhaps we must first have a sizeable portfolio?

    hehe...

    ReplyDelete
    Replies
    1. Hi Rolf

      I guess it's a matter of time before it snowballs over to the right direction ;)

      Delete
  9. Hi,

    Nice numbers I see there! I wish I have those numbers soon.....great works.

    David

    ReplyDelete
    Replies
    1. Thanks David. You are doing very well on your side as well.

      Delete
  10. Hey, great numbers!

    Could you tell me where can I find stocks that pay dividends?

    Thanks

    ReplyDelete
    Replies
    1. Hi The Sniper

      They are available everywhere depending on what type of markets you are looking for.

      Delete
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