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Friday, August 26, 2016

Dividend Income Updates - Q3 FY2016

This is a compilation of my Q3 quarterly update for this year.




The previous 2 quarters can be found here and here.

The theme for this post will be outsourcing and we will look into how we can do that to our advantage. 

There are many companies that are outsourcing their transaction or operational tasks to a cheaper location. 

The objective is very clear – to achieve an overall costs savings which would benefit the company and ultimately shareholders in terms of bottomline earnings. 

I recalled when our company was tasked to migrate a few of the activities a few years back, almost one-third of our staff was retrenched and had to pack their bags. They were basically either deemed too expensive or redundant or both. What might seem so plausible at first has become a nightmare when there are inefficiencies counterproductive during the hypercare period. This lasts for the next year or two before it becomes more stabilized. 

As employees, we can never take things for granted. There are so many variables that can take our retirement dreams away from us. 

Redundancy is clearly one of them, especially as our wages become more expensive for the company over time while the contribution do not keep up with the wages. 

When we are being made redundant, we can almost forget about extrapolating our income all the way until retirement. Most of the times, we do not have too much influence over this other than continuing to upgrade our skills. 

Accident is another which can dampen our hopes. While the probability of an accident happening is clearly small, this is a black swan event which cannot be underestimated. 


Dividend Investing

Dividend investing is not the only strategy for success but gives us an additional option to have something controlled within our means (it is better than not having one). 

They work the same way as the interests received in our banks or the rental we get from our landlord. 

In essence, we strive to make money works harder for us instead of having ourselves work harder for the money. Well, we do need to put in extra effort at the beginning and perhaps maintain a certain level of effort after that, but the idea is that it’ll get better from there on. 


Dividend Income Q3

My dividend income has not been stellar these past few months.

While dividend investing remains my main strategy for the long run, there are a couple of opportunities which I am eyeing on. In the meantime, I'll just have to depend on the rest of the equities which are giving me the dividends.


CountersAmount (S$)Ex-DatePayable Date
Ireit2,321.40 29-Aug16-Sep
CCT658.5026-Jul25-Aug
ST Engineering650.0018-Aug30-Aug
Kingsmen450.005-Sep19-Sep
Ascott229.0026-Jul24-Aug
OCBC204.003-Aug18-Aug
HK Land204.00*17-Aug12-Oct
First Reit168.8021-Jul26-Aug
Total 4,681.70


The total amount of dividends for Q3 is $4,681.70.



This will bring the total amount of dividends received year to date to S$15,586.

I am not expecting much for Q4 since the majority of the companies I owned will not be paying quarterly dividends regularly like the Reits.

In this case, the dividends will go directly to the warchest position which I am still accumulating.

How did you fare for your Q3 dividends?


23 comments:

  1. good job. i just hope you still keep your lucrative job.

    ReplyDelete
    Replies
    1. Hi Kyith

      Thanks. I hope that's still something within my control. I cant imagine going jobless at this moment.

      Delete
  2. I see your warchest getting ready to accumulate crisis ? I know no body can predict when the crisis but are u the type that invest regardless of the situation ? Just to understand, since I am seeing your warchest likely going for a battle :-)

    ReplyDelete
    Replies
    1. Hi Tony

      Thanks for leaving your comments.

      You are right, the warchest is there to take advantage of the crisis, if any. But I will not use the sentiments of the STI to make my decision. Mine is still company based, so for as long as the valuation hits the right moment, I'll easily be in the market again. I'm still waiting to bait on the opportunity.

      Delete
  3. Hi B,
    Great ! Dividend really give us a peace of mind ,,and of course an option to decide what we want to do when our dividend can cover all our expense ...plus some margin of safety ,,,:P
    Cheers !

    ReplyDelete
    Replies
    1. Hi STE

      Many thanks.

      Seeing real life examples like you and AK shows that it is entirely possible to do it though it takes a lifetime to do it but I believe it is worth the cause.

      Delete
  4. In many parts of Europe you cannot just make perm staffs redundant. Union is too strong.

    Most people there are ok without a job bcos of the social benefits.

    Perhaps not forever as we all know...

    ReplyDelete
    Replies
    1. Hi Rolf

      Ah yes i heard of it, these people get unemployment benefits up to $700 per month just by being unemployed. Sometimes the welfare is too good it creates a downward spiral between those who really need it and those who thinks they need it.

      Delete
  5. That's quite hefty amount of dividends already.

    ReplyDelete
    Replies
    1. Hi SR

      Thank you, I believe you are doing very well your side this month too :)

      Delete
  6. Replies
    1. Hi Uncle CW

      Still long way to go, but sdikit2 lama lama jadi bukit concept theory.

      Delete
  7. August has traditionally been a good time for receiving dividends. Good job you've done, very impressive!

    Lazy Singaporean

    ReplyDelete
    Replies
    1. Hi Lazy Singaporean

      Thank you much!!!

      I hope Aug does well for your portfolio too :)

      Delete
  8. you have a good looking portfolio.

    ReplyDelete
    Replies
    1. i don't really focus on dividend except for it to be factored into the demand for the shares.

      Delete
    2. Hi SMK

      Thanks much.

      Yes agree on that. We should look at dividends as part of the overall returns. No point having high dividends but making capital losses.

      Delete
  9. Wah, you hold a lot of Ireit. The Gearing is quite high though the DY is quite high and stable.

    ReplyDelete
    Replies
    1. Hi Unknown

      Yeah the gearing is high but it is warranted since the cost of borrowing in Europe is so cheap at the moment.

      Delete
  10. Hi B

    for hkland dividends, which options will you choose? receiving in sgd or usd is better?

    ReplyDelete
    Replies
    1. Hi Anonymous

      I'd choose the dividends to be received in SGD.

      Delete
  11. Hello there! May I ask... why First Reit and not Parkway Life? I'm also looking into reits for dividend income. Do you hold your reits for long, or do you trade in and out often?

    What about stocks? Also trade in and out?

    Thank you in advance for replying :)

    ReplyDelete
    Replies
    1. Hi Soon Chuan

      Both First Reit and Plife Reit are very good Reits that have proven why they are worth the valuation. I like the fact that both have a very resilient rental structure with long master leases, with organic escalation growth of CPI + 1% for Plife Singapore hospitals and CPI + 2% growth for First Reit Indonesian hospitals. Plife has recently go into fortray more towards the Japanese market where it yields them a much higher NPI yield than their Singapore hospitals so I think that's where their strategy might run from here.

      First Reit has a more expensive cost of borrowings as compared to Plife Reit which is almost half, hence this needs to be considered when we compare against their respective levered yield.

      In my opinion, both does not trade at cheap valuations right now, and they rightfully are because they have been that resilient.

      Delete

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