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Tuesday, May 3, 2016

Dividend Income Updates - Q2 FY2016

I am writing this dividend update in an attempt to compile my quarterly dividend performance for the year. The last update for Q1 was written a couple of months ago (Link Here). 

The theme of this post will be based on my understanding of the advantage of dividend investing and that is to compound dividends for as early as we can, for as long as we live




I am sure by now many of you have heard the common saying of “Sell in May and Go Away” phenomenon that has been going around, lurking and prompting investors to sell their portfolio holdings and seek a hideout until the bear comes out. There are some truth in this, as hindsight statistics have proven over the years that resembles many other hidden truths but do note that they are not bound for absolute certainty given how some years they’ve turned out otherwise. 

If we take a step back and think what it really means, we will soon realize that they are all but a bull of crap, no pun intended. They are noises to stir around the emotion of an individual, to test and see if they are investors who have a developed mind of their own or simply buying and selling based on what they heard on the street. I’ve been tempted myself not once, not twice but a couple of times, many times in fact over my investing journey and with the ubiquitous of the media stream, I believe the same goes for many.

Now, if you decide to sell them based on the above reason, you will soon find yourself to be in an extremely difficult position to allocate the capital you have at hand as you have to find a better company with a better valuation, which does not come across too often. I’ve shared in my previous post (Link Here) how difficult it can be for an individual to sell and buyback and unless you’re a proven winner in this category, you are better off compounding those dividends you receive from your company as much, as early and as long as you can. I think that’s a slower but a pretty high success rate in the long term. 


CountersDividend (S$)Payable Date
Ascott Reit159.0027-Apr-16
ST Enginnering1200.0010-May-16
China Merchant Pacific1575.0019-May-16
Neratel130.0020-May-16
Ho Bee1540.0027-May-16
First Reit169.0030-May-16
Kingsmen1600.0031-May-16
FCT395.0031-May-16
OCBC*1080.0014-Jun-16
Total7848.00

*Scrip

After tabulating my dividend for all my companies, the 2nd quarter dividend amount came up to $7,848. Together with the Q1 dividend amount of $3,056, the 1H FY16 dividend amount came up to $10,904, which is still below my targeted amount of $2,000/month or $24,000/year. I'll keep going and see where it takes me though at the end of the year.




I am treating this dividend income as part of my cashflow which would be reinvested into the market that will give me a higher dividend income in the future which would fund my early retirement, if that is ever going to happen.

If you think that this strategy might work out for you, I’d suggest you give it a try for at least one year and see what happens. For most, I think it’s a pretty addictive exercise to churn out year after year.

How are you doing in terms of dividend in the 2nd Quarter?


22 comments:

  1. Hi B,

    You are so right. It is really additive.

    ReplyDelete
    Replies
    1. Hi PI Trooper

      It is indeed. I can see that you are growing addictive for your portfolio yourself :)

      Delete
  2. Additive but nice feeling to have a passive income ready for unforeseen circumstances.

    ReplyDelete
    Replies
    1. Hi Ronnie

      Especially in a down market like what we have in the past 8 trading session... hahaha

      Delete
  3. Additive but nice feeling to have a passive income ready for unforeseen circumstances.

    ReplyDelete
  4. Hi B,

    Well Done! Yes, super additive.

    Cheers,
    Farmer.

    ReplyDelete
    Replies
    1. Hi PIF

      Thanks.

      You will have a huge bumper of dividends in this month as well!!!

      Delete
  5. Hi B,

    Just wondering why you are tabulating Q2 dividends when it is not June yet?

    ReplyDelete
    Replies
    1. Hi DK

      Good to hear from you.

      I guess it's occupational hazard that in my line we always record these dividends on their record date instead of when they are actually being paid out, just from an accounting entry point of view.

      That being said, I guess it's pretty similar question as to why some of us track our monthly performance in the middle of the month than end of the month and things like that. It's just timing, and hopefully it won't have any much effect to that.

      Hope you enjoy your bumper dividends for May :)

      Delete
  6. This strategy will work as foundation to build up sustainable retirement income for life. :-)

    ReplyDelete
    Replies
    1. Hi Uncle CW

      We can't rely on ah tiong income for life definitely. They told us to pack up at go at 67 right?

      Delete
  7. B,

    kaching! nice dividends there!

    i usually dont tabulate them, till it is actually in my bank account. as i am abit lazy to calculate how much per counter.. but yes, it is always a nice feeling to have such bumper crops! kaching!

    ReplyDelete
    Replies
    1. Hi FC

      Ahh ok, You just enjoy the dividends in your pocket as they come!!! Now I get who's the rich papa here :)

      Delete
  8. That's almost $11,000 of dividend income by June 2016 and it's a fantastic result!

    ReplyDelete
    Replies
    1. Hi The FS

      Thanks and you are doing a lot well yourself there.

      Please update us on your latest development :)

      Delete
  9. Hi B,

    Just wondering is your entire portfolio made up of only SG stocks?

    ReplyDelete
    Replies
    1. Hi Anonymous

      Yes, I have only invested in SG stocks so far and they have met my requirements.

      Delete
  10. Hi B, I have not counted my dividends. My portfolio consist mainly of REITs so I am expecting some payout in May as well. I am also planning the dividend to find my retirement. Good Luck to all of us!

    ReplyDelete
  11. HI B,

    Yes, after doing it for the pass N years, I confirm this is super addictive. And it feels super good when dividend income can cover your expenses. :)

    Congratulation to the nice dividend income.

    ReplyDelete
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    ReplyDelete
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  14. Yes, after doing it for the pass N years, I confirm this is super addictive. And it feels super good when dividend income can cover your expenses.
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    ReplyDelete

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