Dividend history is still my key to long term investing

It pays to look at the dividend history of a company and to study it carefully, like when we are preparing for our exams in the past.

With this information, we are less likely to be hit with surprises.

Let me illustrate this with a few of the companies in my portfolio:

ST Eng.

- look at its dividend history since listing. it has ups and downs but overall it is still uptrend. so the the last dividend announcement from 4c to 5c is can be expected, if not now, would not be too long down the road. nothing interesting, just a good blue chip to hold, possibly forever.

Noel gifts.

- this small company, much family owned. look at its history. it has the characteristics of paying out more when it earns more. Special dividend have happened before. So as I mentioned previously in my previous entry, I was already expecting a 2-3c dividend. It came out 3c. so future specials are possible and actually quite probable. good thing is still is a small cap. so fund managers and big boys don't really look here.

Hupsteel

- this heavily undervalued company has been discussed previously. look at its dividend history. when it makes good money, it pays good dividends. when it makes less, it pays less. when it loses money, it still pays a token. i view this as big shareholders really taking care of small shareholders. how many companies can do that? I thought my dividend investment ideation would be broken this year and i need to relook my investment philosophy, but history proves it to be stronger than I thought.


Parkway life

- this blue chip healthcare company cannot be ignored. with the aging population fast increasing, i will view this company strongly as a direct beneficiary of our evolving demographics. dividend increasing yoy. no rights issue. probably no need for it as health care cost keeps going up anyway. no such thing as a sale price to see a doctor.



Have a good weekend.

Hupsteel -dividend cut.. real estate transformation??

My dividend income will take a hit this year as hupsteel cuts this year dividend to 0.1c from the previous years' 1c.

- steel business is making a loss. Asia enterprise n cosmosteel which are similar are all reporting losses too. So its not the company's weak but the O&G n shipbuilding industry is weak beyond terms.

- 0.1c dividend i believe its just to reward loyal shareholders even though company making loss

BUT:

- its sitting pretty on more than half a million square feet of space:

freehold around 140,000sf (add up kim chuan, genting lane, jalan besar, hoe nam),

Leasehold around 400,000sf in jurong and tuas.

- net cash nil debt position.

☆☆ possibility of real estate transformation???


With lim boh chuan previously handling the ppty segment now taking on MD n co-ceo role, things might get more interesting.

I am staying vested.

Bear market - my strategy

- unknown how long or how bad this will be, but it

1) cannot fall to zero
2) cannot last forever

- load periodically either based on STI level or time (whichever comes first)
- load up on dividend rich fundamentally unblemished stocks whose yield becomes irresistable.
- use a mixture of dividends n cash to get more dividends. Rpt process.

24/8/2015 sti down 100+. My actions

1. Added tan chong at hk2.42. Dividend likely will be announced soon. Subsidiary zero did well with increased dividends. Expect same or increased dividends from tcil.

2. Added plife reit at S$2.20. At dpu 3.35c, this is a solid 6%pa yield. Crisis or no crisis people still fall ill.

"When no one wants it, thats the time to buy a few million"

I remember the famous saying by the late billionaire Khoo Teck Puat, "when no one wants it, thats the time to buy a few million"

How many people have the courage and conviction and of course the funds, to put this to action?

Those who dare do so and are proven correct in this coming bear and next coming bull will be very richly rewarded.

Noel gifts international - 3c dividend coming

An investor friend alerted and congratulated me to this just now.

Noel gifts will be giving out 3c dividend this year, up from its usual 1.5c.

As i mentioned before, i believed more good things will happen to this counter after winning a few big contracts last year.

Will receive an extra $11k.

This dividend will come in handy to reinvest in the bearish market.

Dividend uses - portfolio update

Portfolio remains unchanged.

Lots of dividends from stamford land, parkwaylife, suntec reit, st engineering coming in from today to the next 2 weeks.

By right, i would reinvest them the moment the arrive.

Looking at the entire bearish market, at around sti 2950 currently, personally i dont see any end to this bear anytime in the next 1 or 2 months.

I will keep my dividends, instead of deploying them and suffering a likely hit.

I would probably be wiser using some of it to treat myself n my family to a good meal or holiday and wait for the big bear to unfold itself.

Of course my view could be wrong, but i guess it cannot be wrong to pamper ourselves once a while.

Cheers!

dividend raises for my portfolio

Companies which raised dividends so far:

plife suntec

both raised dividend yoy

steng singre hwahong 

St eng raised interim dividend
Hwa hong gave special dividend
singre gave special dividend

*** 5 companies of my portfolio or nearly 1/2 of my portfolio paid more dividends this year.

most of the others maintained dividend so far. thus in milieu of falling stock prices, more units can be purchased.

POINTS TO SHARE:

1. no need to fear crisis. During 2008/9 GFC STI dropped to 1400, those companies still paid dividends. What's the fear this time?

2. don't follow tips blindly what to buy and sell. do your own reseach. Personally, i find it amusing that certain radio stations offers tips from a so called expert every day after market closes. The number of people buying and selling based on such tips is astounding.

3. if there's anything during the crisis to trust in, it can only be dividends. figures can be faked. technical and fundamental analysis can be tricky to work out. But one thing is real, ask yourself this how can companies pay out money if they don't have it?

4. what can be better than to collect dividend every month.

5. whether to add more or simply give yourself a buffet treat using the dividends, the choice is entirely yours.

portfolio update 11/8/2015

Dividend by mth.
1) hupsteel singtel
2) plife suntec
3) namlee
4) taisin
5) steng singre hwahong suntec uob
6) tcil plife ocbc
7) engro
8) metro stamland suntec plife uob singtel
9) steng singre ocbc
10) tcil
11) ngil taisin plife suntec

Ocbc uob and singtel added. The former 2 are CD, and got beaten down today. Reason for bloodbath is unknown to me. But known to me is that they pay up on time.

Typical n atypical owners of toyota altis and ferrari

Toyota altis - all in yearly expenditure around $20k

Typical owner - earns 100k or less pa.
Thus altis eats up 20% of income.

Atypical owner - earns 500k or more pa. Altis eats up <5% of income which is quite negligible. Can afford benz E200 or S class yet opts for altis.

Ferrari - all in yearly expenditure around $100kpa. Road tax already $20-30kpa if i am not mistaken. Yearly depreciation around $50k pa or more.

Typical owner - earn in excess of 1mil pa. N he will have a host of other cars. Total cars costs will not exceed 10% of income.

Atypical owner - earn 500k. Blows 20% of income on this. He struggles to keep up with super rich on image. Maybe owns another altis to save running costs of his ferrari.

The person in the first group shd take bmw unless there are compelling reasons to buy a car.

The person in the 2nd group is wise. He probably knows how to manage his finances.

The person in 3rd group is likely a decamillionaire n above. He probably is getting richer faster than his cars n other luxuries can burn his money.

The last group can possibly achieve FI quickily if he gives up his ferrari n other luxury items.


Not sure why i am getting so much Russian audiences. Anyway, hello Russia!

If u are thinking of cashing out that 50k from the stk market...read this

Take heart...read this.

Yes, market seems in a turmoil and might go down more. China weakening. Malaysia political problems. Australia's not good. S'pore cooling measures seem to last forever. Spore property market no good. Commercial market also no good.
It might go worse. It might go below sti 3000. Shall i bail out all my funds and wait? Cash is king right?

My answer to that is don't panic. Think again. 5m people in spore. Market even goes to sti2500 still will

1. Need to use telephone n handphones

2. Still will go to shopping malls especially those connected by mrt n bus interchanges. Maybe eat out less but how can escape going to supermarkets?
Can u imagine say tampines mall empty?

3. Look at fast food restaurants. Long queues even during lehmans. Can u imagine mac donalds restaurant empty?

4. So many vehicles in spore..maybe 400,000. Look at the jams. OG crisis so what. Can the cars dont use petrol? Crisis or not, the CTE still so jam. Can u imagine cte empty during monday at 9am?

What do the above examples mean to u?


So if u still thinking of cashing out that 50k, for fear of it turning to 45k 40k and so on...
Think again..do u really have to worry about the absolute portfolio size...so long as it still pays dividend? Who can control market ups/downs anyway?

Markets wont stay up or down forever.

But good news is that u can do ur part, by selecting fundamentally sound companies which pays dividends n then reinvest them to maximise the next upturn.


But if u still cannot sleep worrying this n that, then maybe the best place is to keep the money in the bank.