Friday, 6 November 2015

Dividend Knight Portfolio Update (Nov 2015)


 
Company
Shares (1000)
1.
M1
12
2.
AIMS AMP
30
3.
Starhub
10
4.
Singtel
8
5.
Frasers Centrepoint Trust
12
6.
CACHE Logistics Trust
16
7.
Mapletree Logistics Group
18
8.
SATS
4
9.
CapitaLand Mall Trust
7
10.
Raffles Medical Group
3
11.
ST Engineering
3
12.
ParkwayLife REIT
5
13.
Suntec REIT
6
14.
MGCCT
7
15.
Keppel DC REIT
10
16.
Sheng Siong
7
17.
Mapletree Commercial Trust
2
18.
VICOM
0.5


Dividends received in November 2015: S$2, 184

Total dividends received since Jan 2015: S$15, 449

Average dividends per month: S$1, 287

Average dividends per day: S$42.30


CACHE Logistics Trust will be doing a huge private placement at a significant discount. This placement will fund a potential (hopefully yield accretive) acquisition in Australia and also lower the gearing to a reasonably healthy 35%. There will be an advanced distribution so as to be fair to existing unit-holders. I will still stay vested for now as full rental contribution from the new DHL facility will be coming in next quarter. This should help to mitigate the drop in DPU due to the dilution effect. Based on a quick 'back-of-the-envelope' calculation, DPU per quarter will drop to around 19 cents after the placement.

Global markets have stabilised and rebounded in recent weeks. Not so long ago, I still remember doomsayers mentioning the word 'recession' and an impending 'bear' market. Sometimes, people fall into the trap of 'investment paralysis' due to over analysing the price movements.

When there is a market correction, they would say , "Oh! The prices are dropping. Low can get lower! I should wait for awhile before entering the market."

When the market eventually recovered, they would say, "Oh! The prices are too high now. I have missed the boat. I should wait for the next correction."

And the vicious, investment-paralysis cycle continues......

In the meantime, prudent investors who buy on dips and hold through volatile times are collecting dividends while enjoying the chance of a potential upside when the market recovers. Better still, they can reinvest their dividends in order to compound their returns. If you seriously strive to be a long-term investor, you must have the fortitude to last through the volatile times and not be easily swayed by sensational headlines from the mass media.



Man on a mission
DK

3 comments:

  1. Dear DK,

    Great analysis, prices for CACHE Logistics Trust has been relatively low of late, is it advisable to nibble on some?

    ReplyDelete
  2. Hi DK,

    What do you think of TTJ Holdings?

    ReplyDelete