Thursday, 14 January 2016

Dividend Knight Portfolio Update (Jan 2016)


 
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
20
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.
OCBC
0.4
18.
Mapletree Commercial Trust
2
19.
VICOM
0.5

Dividends received in January 2016: S$544

Total dividends received since Jan 2016: S$544

Average dividends per month: S$45.33

Average dividends per day: S$1.49


For the month of January, I only received $544 in dividends from Singtel. Due to the recent stock market carnage originating from China, I finally had the opportunity to add OCBC to my portfolio. My next target shall be DBS. If you remember, I did mention in my previous post that 2016 will be my 'bank-nibbling' year. OCBC did a commendable job of consolidating Wing Hang Bank which it acquired in 2014. Moving forward, I hope the acquisition will help to boost earnings. Furthermore, OCBC has a generous SCRIP dividend programme whereby shareholders have the option to receive their dividends in the form of shares at a 10% discount to the prevailing market price. Lastly, I am confident that OCBC has the ability to at least maintain its dividend payout this year, resulting in a dividend yield of around 4.3%. In my opinion, this is the sweet spot between growth and yield.

Telcos and REITs are surprisingly resilient in the face of such disastrous and volatile market movements. Sure, their prices did drop like the rest, but not as drastic. I guess some investors are fleeing to safety, which means falling back on the 'never-out-of-favour' income stocks. Fortunately, telcos and REITs are already the 'bread and butter' of my portfolio. Secondly, investors are starting to realise that certain industries are relatively insulated from the China crisis and oil price rout. I don't think you will hear someone say "Oh no! China stocks are crashing! I must cancel my mobile plan now!"


NOT having sleepless nights
Dividend Knight

10 comments:

  1. Among your portfolio, given the current crisis, what will you buy more now?

    ReplyDelete
    Replies
    1. Hi Sweet Retirement,

      The current crisis originated from China and persistently low oil price.

      AMONG my portfolio, I will choose to buy more Raffles Medical, especially below $4. The Holland Village development will be completed in the first half of 2016, thus leading to earnings growth in the second half of 2016 leading into 2017. Just my opinion.

      Cheers!^^

      Delete
  2. Hi DK

    Is RMG undervalued now though earnings are expected to bump up in 2017? Do you think their current valuation warrants their growth for the next couple of years?

    ReplyDelete
    Replies
    1. Hi B,

      If RMG's expansion plans proceed without major hiccups, below $4 would be undervalued. IMO, at the current price, RMG is slightly undervalued.

      The current valuation warrants their growth for the next couple of years (3-5). Holland V specialist centre this year. Raffles Hospital extension in 2017. Private hospital in China by 2018. I believe more profits can be reaped from these developments as they mature in 2019 and 2020.

      Delete
  3. Such a nice portfolio.. Would you mind to tell me your current age? And how long you build a such portfolio? I have been following your blog for 3 months..hope to learn more from you

    ReplyDelete
    Replies
    1. Hi ching wei,

      Thanks for the compliment and following my blog!^^

      I am 38 this year. I started investing in 2013.

      Cheers! :)

      Delete
  4. Hi DK, what is your view on Keppel DC Reit?

    ReplyDelete
    Replies
    1. Hi freako,

      Keppel DC REIT is riding on the wave of rising data centre demand in this digital age. So far, the management is doing a competent job in acquisitions. The gearing is healthy. Leases are long. Strong sponsor. Above average yield.

      Can consider getting some below $1.

      Delete
  5. Hi DK,

    What do you think of the parent companies of O&G sectors? Like Sembcorp Industries and Keppel Corp? They're getting punished heavily, but is it worth picking up some shares right now?

    ReplyDelete
    Replies
    1. Hi Unknown,

      Keppel Corp is a massive conglomerate. It has a property arm to buffer against the headwinds in the O&G sector. SembCorp has its stable utilities business too.

      IMO, it is highly risky to pick them now. Oil price is not going to rally anytime soon. Furthermore, the Sete Brasil is still facing the possibility of bankruptcy. I would advise to monitor the situation in the coming months. Dun be rash.

      Delete