Saturday, 7 April 2018

Dividend Knight Income Portfolio Update (1Q2018)


No.
Company
No. of Shares
1.
DBS
2, 300
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.
Sheng Siong
27, 000
17.
Straits Trading Corp
3, 000


The latest quarterly results from the local 3 banks have shown that the worst of O&G NPL woes is over. They enjoy uplift in NIM and loan growth. During the recent market dip, I added 300 shares of DBS below $27 mainly due to the management’s commitment to a higher dividend payout moving forward. Annual dividend per share will double in 2018, from $0.60 to $1.20 per share!  A secondary factor is the robust growth momentum in its wealth management and investment banking fees.

Another stock I accumulated was Sheng Siong, 10k shares at $0.915 back in February. Its strategy of focusing on fresh foods in densely-populated HDB estates has proven effective against the e-commerce threats of Amazon, HonestBee and RedMart. Sheng Siong is potentially opening 4 new stores in 2018, with the joint venture in China finally operational. In my opinion, its China expansion story has not been fully priced-in yet. Slow & steady growth, just the way I like it.

The current trade ‘quarrel’ between the US and China has the risk of turning real ugly, real fast. So far, both sides have flashed their weapons but not fire any actual bullets yet. Any impulsive tweet from Trump might send the situation spinning out of control. As an export-driven economy, China stands to lose out more than America if a trade war erupts. In any trade war, an economy that depends heavily on exports would almost always lose out more. That’s why Germany and Japan are also countries more vulnerable in the event of a global trade war. I am keeping my fingers crossed that common sense and rationality would prevail in the end. Besides hoping for the best, it is always prudent to plan for the worst too. So, I am parking half of my investment warchest in the May issue of Singapore Savings Bonds.



The supreme art of war is to subdue your enemy without fighting
DK

1 comment:

  1. Hi DK,
    I wonder if SS's China growth will be able to take off and expand...do you have more insights on it? Thanks!

    ReplyDelete