Sunday, 3 December 2017

Dividend Knight Income Portfolio Update (End-Of-Year)

No.
Company
No. of Shares
1.
DBS
2, 000
2.
Singtel
15, 000
3.
AIMS AMP Capital REIT
30, 000
4.
Frasers Centrepoint Trust
15, 000
5.
SATS
3, 000
6.
OCBC
2, 000
7.
Raffles Medical Group
20, 094
8.
Mapletree Logistics Trust
22, 000
9.
ParkwayLife REIT
8, 000
10.
Keppel DC REIT
12, 800
11.
Frasers Logistics & Industrial Trust
13, 000
12.
Mapletree Commercial Trust
8, 000
13.
Frasers CentrePoint Ltd.
5,000
14.
Comfort DelGro
10, 000
15.
CapitaLand Commercial Trust
6, 000
16.
Straits Trading Corp
3, 000
17.
Sheng Siong
17, 000
*Subscribed to the rights issue exercises of MLT & CCT

Total dividends received since Jan 2017: S$19, 000
Average dividends per month: S$1, 583

Average dividends per day: S$52



Profit-Taking On 'Ripe Fruits'
Global markets have gone through a strong rally in the 2nd half of 2017. It seems like the synchronised global economic recovery is pushing investors into 'overconfident' territory. During this bullish/exuberant period, I took some profits off the table for DBS, OCBC, SATS and Starhub. These are the transactions.

- Sold 1k shares of DBS at $24.10
- Sold 1k shares of OCBC at $12.02
- Sold 3k shares of SATS at $5.15
- Full divestment of Starhub at $2.90

DBS did a 'spring-cleaning' on its O&G bad loans. One-time pain, long-term gain. Its private wealth business unit is still growing at a healthy pace. SATS would benefit from the recent opening of Changi Terminal 4. I hope they can win more contracts from airlines operating at T4. Starhub's CEO is leaving next year and he has sold most of his Starhub holdings. With TPG coming into the local mobile market next year, I feel now is a good window for me to cash out.


Planning For Future Fed Rate Hikes
Most S-REITs rallied hard and hit their multi-year highs. With the inevitable Fed rate hikes coming real soon, I decided to channel my funds into non-REITs such as Comfort DelGro and Sheng Siong. My warchest is still left untouched. These are the transactions. 

- Bought 10k shares of Comfort Delgro (CDG) at $2.02
- Bought 10k shares of Sheng Siong at $0.94

In my opinion, $2 is a fair price to pay for CDG. It is currently in talks with Uber on a potential alliance. The bulk of its earnings is generated from its overseas subsidiaries as well as local ones like VICOM and SBS. Not to mention its public rail & bus businesses. Lastly, its current earnings (even with another 10% drop) would not endanger the annual dividend payout. A blue-chip with 5% dividend yield is a reasonable buy. However, this is more of a 'Buy-and-Monitor' position because Grab would come up with disruptive/innovative ways to compete. 

Next, Sheng Siong was not as affected by the entry of Amazon as I initially feared. The management is aiming for 50 stores in Singapore eventually. Slow but steady growth. I hope its China expansion could bear fruit next year and its dividend payout would not decrease again. 



Overconfidence is the most dangerous form of carelessness
DK

(*P.S. - I am switching to quarterly updates instead of monthly ones)

6 comments:

  1. Do you think driverless bus/car will disrupt CDG future as an transport operator? will CG ale to transform go the way of the dodo?

    ReplyDelete
    Replies
    1. Hi desmond,

      It is possible for driverless vehicles to become mainstream in the future. But I doubt it would happen in the NEAR future. Too many legal & insurance issues to resolve.

      And when driverless cars/buses do become mainstream, I believe CDG has the financial means to operate a fleet of driverless taxis.

      Delete
  2. Hi DK,
    I am interested to know your views on RMG and whether is the current price attractive to you. Thanks and best regards.

    ReplyDelete
    Replies
    1. Hi,

      RMG's narrative is pretty simple. Must wait for the 2 China hospitals to start operating before earnings can resume growth. I won't be adding any at the moment. Just holding what I already owned.

      If you are asking me for a reasonable long-term entry price, I would say close to $1.

      Cheers!

      Delete
  3. Dk what is your take on CDG acquisition of Uber's rental unit?

    ReplyDelete
  4. Hi DK,

    Currently holding previous RMG price 1.34, has been waiting awhile, do you think its a good time to average it now ?

    ReplyDelete