| Counter | Average Price | Yield on cost(%) | Weightage |
| UOB Bank |
18.2150
|
4.00
|
21.83%
|
| OCBC Bank |
8.6000
|
4.00
|
20.62%
|
| First REIT |
1.2500
|
6.75
|
6.74%
|
| Keppel Corp |
5.3700
|
5.00
|
9.66%
|
| SPH |
3.7500
|
5.00
|
6.74%
|
| Capitaland Commercial |
1.3523
|
6.15
|
4.05%
|
| SPHREIT |
0.9293
|
5.80
|
3.90%
|
| Keppel DC REIT |
1.0102
|
6.50
|
2.42%
|
| Ascendas Hospitality |
0.6991
|
8.03
|
2.09%
|
| Mapletree Logistics |
0.9800
|
7.40
|
1.76%
|
| STI ETF |
2.8058
|
3.50
|
20.18%
|
| Total |
4.61
|
100.00%
|
| Legend |
| CDP |
| SCB |
Total Invested Capital = $16,749.29
Total Expected Dividends/month = $64.34
Average Dividend Yield = 4.61%
The rally in the markets after BREXIT is now showing signs of weakening. Given the sudden plunge last Friday, it is looking like another opportunity to add to my portfolio. I have already taken advantage of the weaknesses of the markets to make 2 significant additions to my portfolio.
The main transactions this month if you have noticed from my portfolio is the liquidation of Saizen REIT and using the proceeds and more cash injected to buy into SPH and more Keppel Corp. As such, my total invested amount has increased to almost $17k, bumping up my expected monthly dividend to almost $65. The dividend yield remains a low end of 4.61% owing to the larger positions in the banks and STI ETF. I am currently looking to add to positions away from banking counters if possible, and addition of SPH and Keppel Corp is a step to diversify my holdings, though still heavily weighted to the banks at this moment in time.
Keppel Corporation has been in my holdings as more of the trading play if possible, but if I am not able to make the trading plan then it is still a nice blue chip to have given weaker valuations at the moment. Now that the SCB rule of minimum commissions have kicked into effect starting next Monday, I am unlikely to add to positions unless the valuations are very compelling. I might even consider moving positions to CDP, but I would prefer to wait and watch as brokerage charges in SCB is still slightly cheaper than CDP. I might as well accumulate more before transferring over since the charges for transferring is fixed at $10.70 per transfer per share.
SPH is more of an income play for myself, and an alternative income stock to the REITs I currently hold. At the moment, REITs are trading near their highs ever since speculation that the US Fed is unlikely to raise rates caused a sudden gravitation towards bonds and REITs. SPH share price plunged back to close to its low after it reported very much weaker results which poses some risks to the current dividend payout to being cut. This puts the scenario of having the current 5% yield I am looking at reducing to 3-4% is to a very much possible outcome given that the current payout is squeezed to a 100%. Still, I am fairly positive on its property segment, also a reason why I am invested in SPH REIT. The media segment has been a drag for a couple of years already and it is up to the management of SPH to seek out ways to improve its income stream away from media and advertising.
Saizen REIT has been liquidated because of the risk coming from the proposed transaction they announced earlier the past few weeks. If they do proceed with the transaction, it is likely they will stay listed, which I believe might be a disappointment to the speculators believing in the actual liquidation of the REIT. Moreover, the share price now is very close to the liquidation value of 1.172 - 1.056 = $0.116. I am willing to take the profits off this counter given the risks of a falling out of the liquidation procedures. The money in this counter would also technically not contribute to any income as at the moment Saizen REIT is an empty shell company, and I would rather use the money to deploy into income stocks rather than waiting for news which may not produce significant upside. In other words, the risk now is now larger than the reward to hold Saizen REIT. And so, sayonara Saizen REIT, it has been nice speculating with you for the past few months.
And so that is all for the month of July. The main focus for me in the coming months is to add to diversification away from banks and to income stocks wherever possible. I don't foresee REITs falling back down anytime soon, but I am eagerly anticipating the time when it does, because you can be pretty sure I would be busy picking up REITs to boost my income segment of my portfolio.
Chaos.
The rally in the markets after BREXIT is now showing signs of weakening. Given the sudden plunge last Friday, it is looking like another opportunity to add to my portfolio. I have already taken advantage of the weaknesses of the markets to make 2 significant additions to my portfolio.
The main transactions this month if you have noticed from my portfolio is the liquidation of Saizen REIT and using the proceeds and more cash injected to buy into SPH and more Keppel Corp. As such, my total invested amount has increased to almost $17k, bumping up my expected monthly dividend to almost $65. The dividend yield remains a low end of 4.61% owing to the larger positions in the banks and STI ETF. I am currently looking to add to positions away from banking counters if possible, and addition of SPH and Keppel Corp is a step to diversify my holdings, though still heavily weighted to the banks at this moment in time.
Keppel Corporation has been in my holdings as more of the trading play if possible, but if I am not able to make the trading plan then it is still a nice blue chip to have given weaker valuations at the moment. Now that the SCB rule of minimum commissions have kicked into effect starting next Monday, I am unlikely to add to positions unless the valuations are very compelling. I might even consider moving positions to CDP, but I would prefer to wait and watch as brokerage charges in SCB is still slightly cheaper than CDP. I might as well accumulate more before transferring over since the charges for transferring is fixed at $10.70 per transfer per share.
SPH is more of an income play for myself, and an alternative income stock to the REITs I currently hold. At the moment, REITs are trading near their highs ever since speculation that the US Fed is unlikely to raise rates caused a sudden gravitation towards bonds and REITs. SPH share price plunged back to close to its low after it reported very much weaker results which poses some risks to the current dividend payout to being cut. This puts the scenario of having the current 5% yield I am looking at reducing to 3-4% is to a very much possible outcome given that the current payout is squeezed to a 100%. Still, I am fairly positive on its property segment, also a reason why I am invested in SPH REIT. The media segment has been a drag for a couple of years already and it is up to the management of SPH to seek out ways to improve its income stream away from media and advertising.
Saizen REIT has been liquidated because of the risk coming from the proposed transaction they announced earlier the past few weeks. If they do proceed with the transaction, it is likely they will stay listed, which I believe might be a disappointment to the speculators believing in the actual liquidation of the REIT. Moreover, the share price now is very close to the liquidation value of 1.172 - 1.056 = $0.116. I am willing to take the profits off this counter given the risks of a falling out of the liquidation procedures. The money in this counter would also technically not contribute to any income as at the moment Saizen REIT is an empty shell company, and I would rather use the money to deploy into income stocks rather than waiting for news which may not produce significant upside. In other words, the risk now is now larger than the reward to hold Saizen REIT. And so, sayonara Saizen REIT, it has been nice speculating with you for the past few months.
And so that is all for the month of July. The main focus for me in the coming months is to add to diversification away from banks and to income stocks wherever possible. I don't foresee REITs falling back down anytime soon, but I am eagerly anticipating the time when it does, because you can be pretty sure I would be busy picking up REITs to boost my income segment of my portfolio.
Chaos.
Buying into SPH ( slow and steady ) , buying into Keppel Corp ( hoping for other business section like property , DC, infrastructure to perform ) ,, nice portfolio and dividend yield. Look for AK's price to buy into a Bank ? DBS at around $13.5 ,,, haha
ReplyDeleteHello STE, thanks for the kind words. I will continue to buy SPH or keppel corp as long as valuations stay low, which is likely the case given the weaker sentiments surrounding them now.
DeleteAs for banks, I will only consider to buy in only if the banks have fallen to very compelling levels, mainly because my exposure to banks is already on the high side.
Hope you are doing well yourself STE!
Hi there,
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