Apologies for the late update. Have been travelling quite a lot recently.
November dividend was like this.
Dividend by month
1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost taisin lippo nam lee netlink
5) fcot steng sgx uob sph starhillg fct sphreit cmt cdg hcg lippo Singre
6) tcil ocbc lkh
7) singpost
8) fcot singtel plife ocbc capitacom starhillg sci steng fct singpost sphreit cmt lippo singre ock
9) uob tcil cdg netlink
10) sgx
11) fcot taisin sgx spost starhillg fct cmt lippo
12) sph sats ksh ock
Remarks:
With my proceeds from lmg and from the dividends, I added the following.
Added old chang kee at 76c. Should have bought this counter long ago. Hesitated and wow, it multibagged from listing price.
Luckily i kept nam lee in my watch list. when my dividends came, i managed to add some below 40c. Full year result showed improved earnings with nav up to 55c.
Added some more singapore reinsurance, steng, sats and siaen.
Also added netlink trust.
Overall,
nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.
No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.
Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.
DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:
1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?
November dividend was like this.
Dividend by month
1) singtel
2) fcot sgx capitacom starhillg fct sphreit cmt
3) spost taisin lippo nam lee netlink
5) fcot steng sgx uob sph starhillg fct sphreit cmt cdg hcg lippo Singre
6) tcil ocbc lkh
7) singpost
8) fcot singtel plife ocbc capitacom starhillg sci steng fct singpost sphreit cmt lippo singre ock
9) uob tcil cdg netlink
10) sgx
11) fcot taisin sgx spost starhillg fct cmt lippo
12) sph sats ksh ock
Remarks:
With my proceeds from lmg and from the dividends, I added the following.
Added old chang kee at 76c. Should have bought this counter long ago. Hesitated and wow, it multibagged from listing price.
Luckily i kept nam lee in my watch list. when my dividends came, i managed to add some below 40c. Full year result showed improved earnings with nav up to 55c.
Added some more singapore reinsurance, steng, sats and siaen.
Also added netlink trust.
Overall,
nothing fanciful and nothing new: dividends received will be used to reinvest in the same counters and/or the counters which are about to pay dividends soon.
No further input is necessary. Portfolio creates the income every month and gets reinvested. One reinvestment move means one more continuous stream of income in the future.
Market up or down doesn't matter too much, in fact is not a bad thing after all. Dividends provided new cash flow as compounding and dollar cost average tool.
DON'T FORGET TO ASK YOURSELF THESE QUESTIONS:
1) WILL THIS COMPANY GO BUST IN 10 YEARS?
2) WILL THIS COMPANY STOP DIVIDENDS?
3) WILL THIS COMPANY STOP INCREASING DIVIDENDS OVER TIME?
Hello Paul,
ReplyDeleteSingPost current yields quite low. Transformation seems a long drag, div drop, earnings drop, etc,etc.
SPH also undergoing transformation and management recent statement during AGM that they are trying to arrest decline don't seem every encouraging. Prospect of div cut. etc looks possible with ongoing cost cutting. Wonder will be same fate like SingPost.
You are vested in these two. What are your thoughts now that disruption and growth have impacted them quite a lot and returns have dropped much? Time to move away?
Yes, i am vested in these two, as well as in comfortdelgro which is also under threat my grab and uber.
ReplyDeletebusinesses have ups and downs. and personally, my favourite question i like to ask myself is whether i see any of these three companies disappearing in the next 10 or 20years. my answer is a definite no.
singapore cannot go without singpost or sph, thats for sure. I won't go into the politics into it as i am an investor only.
comfort delgro is also a very diversified group.
at the time of writing this reply, i did a calculation. my overall exposure to these three counters total up to 12%.
for me to lose this 12% is highly unlikely
even to lose 6%, would mean singpost, sph and comfort trading at $0.65, $1.3 and $1 respective, which to me is also highly unlikely. so move away or not, i don't think my overall position will improve or deprove very much.
i will just give them and myself time. enjoy the ride. enjoy the dividends.
Not much impact on overall position, that says it I guess. Thanks for sharing.
Deleteyes, put it another way. if i were rather certain that any of these trio would disappear from singapore in the next 10-20years, i would offload all. with the backing of these companies and politics behind, i think they will remain for a long long time.
ReplyDeleteThey remain but will not be making much money. My guess.
ReplyDeleteit seems that way now. but under a long horizon, its possible that things might change, and it might change as abruptly as grab/uber entered the market and digital disruption to sph etc, then it might just to too late to get in.
ReplyDeleteso i take the lazy way of waiting and collecting dividends as it goes.
Hi Paul,
ReplyDeleteWas wondering if you would be able to share some insights for a recommended 'dividends every month portfolio' for 2018?
Being 28, my current portfolio is 18% bonds etf, 41% sti etf and 41% iwda etf (iwda to get exposure to UK/US shares). I contribute and DCA monthly. Don't monitor much, only twice a year to do re-balancing.
Given that I have more cash now, I am looking to set up another portfolio which focuses on dividend stocks.
Thank you,
Joyce
hi,
ReplyDeletedo you mean an all new 2018 portfolio?
basically, the counters will be share some similarities to my portfolio. as you already know, my focus is on maintaining and increasing dividends aka cash flow on a long term basis. and most of the counters i mentioned in 2016/7 have already a long record of paying dividends and i strongly believe they will continue to do so in the future.
talking to myself, if i were 28 now, i would tend towards an equities heavy portfolio, working hard to quickly build up a decent size base to let the compounding help me later on.
yes, for long term investing, u don't have to monitor much, looking at quarters or biannuals is usual enough.
as mentioned in my earlier comments to one reader, personally, i prefer a DIY portfolio, that is because i can add every month or even more frequently. etf only pays dividend twice and the compounding is limited by that.
so if i were 28, i would be equities heavy and work very hard to quickly build up my base.
IIRC, there is a popular research article which demonstrates that a person who builds up his investment portfolio from age 20 to 30 with no more active contribution thereafter will actually surpass a person starting at 30 with whole life regular contribution up to the age of 70.
then when you are in your 40's you should have a very comfortable level of dividends and can probably decide to retire if you wish to
thanks
Hi Paul,
ReplyDeleteThank you for the detailed explanation.
When I first started, the '100 - our age' asset allocation was something that I was comfortable with. I tweaked it to '110 - your age' following some advice.But I agree with you that etf only pays dividends twice a year and thus limits compounding.
With more cash now (yay to good bonuses & aws), I would like to start my basic $13k dividends every month portfolio.
I recall in your earlier posts that we should not time the market. Although it is quite scary as most counters are at their all time high.
Would you say your method is equivalent to DCA? Same amount of investment monthly, buy less when price is high, buy more when price is low? After all, we are in for the long run and the companies chosen have strong fundamentals.
Joyce
yes, dca concept is part of my investment method, together with compounding.
Deletefor myself, in my earlier years, i realise that i am unable to time the market and fare very badly if i would attempt to buy low and sell high.
in practice, though i buy at all times, actually every few weeks most of the time, i would try to select the most favourable counters to buy even though market seems toppish at the meantime. from a basket of bullish stocks, there bound to be some which are not as bullish as the others.
thanks
Hi Paul, what is the minimum sum that one should consider to buy each counter? I've been buying counter (usually at $1k each time) since starting work early this year. Not too sure if this is ideal in terms of factoring the fees.
ReplyDeletefees are money and sometimes its hard not to think about it.
Deletehowever, if one is in for the long term, the fees would be soon be negligible when you take into account capital gains and future streams of dividends from that small amount invested.
minumum sum will depends on income, porfolio size, comfort level amongst other factors.
whatever it is, definitely its good to start earlier rather than later.
Hi Paul,
ReplyDeleteFor someone who is 40 and new to investing, looking to start a small portfolio with $25k, will your method be a good way to start? How many counters will be effective with such a small capital base? Or it is a better idea to focus on a a few counters with higher potential upside?
hi
ReplyDeletethanks for your question which i would be placing myself in these shoes and talking to myself.
i would need to make sure that my family and i are adequately insured and i have set aside emergency funds of at least 6months, though i would prefer 1 year.
if the above is not done, i would attempt to settle these issues first.
ok, assuming that i have done the above,
i don't have investing experience, thus i will look at bigger counters and familiar names first.
i know what uob ocbc st eng sia sia eng sph capitamall etc have been around for long time and most likely would remain for a long long time
i will read up on these and further familiarize myself with these counters, how often they pay, when they pay etc.
if i am satisfied, i will buy those counters slowly. start with those which are not at their 52 week high or 5 year high, whichever i am more comfortable with
and slowly add. i prefer to add monthly and different counters.
and when the dividend comes, add it togther with the allocated cash.
25k is enough to buy into at least 10 counters.
few counters would be higher risk.
more than 10 counters of blue chips would reduce a lot of the risk and would provide dividend flow to many more months than only a few counter, which i strongly prefer.
then keep adding
p.s i will update my porfolio early january
thanks!