2024 Year End Review & Dividends - 3rd slowest increase in cash dividends since 2011

Although 2024 started off as a year where investors were anticipating whether rate cuts would happen (rate cuts eventually happened on 18 September 2024), it would be remembered as the year Donald Trump made an incredible historic comeback and was elected the 47th president of the United States. As a result of Trump's comeback, the market has priced in an inflationary environment, with rate cuts projected to slow down. With this being factored in, Reits got sold down while banks stocks went up. 

Although my portfolio went briefly into the red in 2nd quarter of the year, it bounced up and is now green, mainly our local bank stocks and ST Engineering. Reits continue to weigh down on my portfolio since I had been buying mainly Reits since 2023, anticipating rate cuts in 2024. While rate cuts did happen, Trump comeback played a bigger role in Reits underperformance. 

Click image to enlarge. Some stats are from stockcafe

For the year of 2024, I have collected $19,566.60 of cash dividends (or $1,630.55 per month), just a 4.2% increase from last year. This is my 3rd slowest increase in cash dividends, partly attributed to my strategy of buying mostly Reits in 2024 and opting for scrip units as dividends instead of cash. 

In terms of total dividends collected since I started this journey, I have collected $97,615.85. I can't wait to break the $20,000 dividends per year milestone next year. 

This year I made a total of 13 transactions. All 13 transactions were buy/add/scrip/preferential offering transactions. In fact, only 6 transactions were buy transactions where I dipped into my wachest. The remaining 7 transactions were all due to corporate action such as scrip dividends and preferential offering. This is also the first time where I did not make any sell transaction in a year. 

Wonder if I should start worrying about the lack of sell transactions since it meant I did not rebalance portfolio or take profit. 

For 2025, I will make a more active effort to look at and add on both Reits and Non-Reits since it is going to be hard to forsee what Trump will and can actually do. He may have gotten a strong mandate, but we can expect his own party members to start opposing some of the policies he push up for approval.

As always, this update excludes Singapore Savings Bonds, T-bills and Foreign Stocks.

My Investment Portfolio - SG (End Nov 2024)

 

stockcafe

No transactions were made.

I was waiting for a knee jerk reaction after the 2024 United States elections, but it never came for the US market. With Trump's victory, we are likely in for an inflationary environment. Although Trump made several positions including 60% tariffs on all China products, it is unlikely the tariffs will be so high. 

Meanwhile in Singapore, REITs went down sharply while Banks went up. This is due to the expectations that Fed Bank will slow down rate cuts as we approach an inflationary environment. 

While my warchest is replenished, I am still happy to sit on the sideline. This is because as we approach the year end, I need to also start calculating and projecting my taxable income for Year of Assessment 2025, calculate how much I need to pay in terms of taxes. Also, do some projections on whether I should put money into my Supplementary Retirement Scheme (SRS) account to lower the tax payable. 

While I am sorting all these, I will be subscribing to Keppel DC Reit preferential offering at $2.03 each in full for their proposal to acquire a 49% stake in the JV to buy 2 hyperscale data centres. In fact, I will be applying for excess. My own view is that this acquisition with this preferential offering is fantastic. It is DPU and NAV accretive, lower gearing, data centres are in Singapore and are artificial intelligence-ready hyperscale, and there is a limited supply of data centres in Singapore and land to build data centres (room to raise rent). It is important to take note that shareholders will need to be prepared for another preferential offering in 2nd half of 2025, as Keppel DC Reit, is expected to exercise the right to acquire the remaining 51% stake in the JV. 

Dividends received* during the month: $759.66 (DBS, ASTREA7CLA1S$526M4.125%320527)

Total dividends received in 2024: $17,414.30

Average dividends per month^: $1,451.19

Total Portfolio Market Value: $411,267

* Dividends are recognised after payment date. Average dividends per month is calculated by dividing the dividends received by 12 months regardless of the month. 

Portfolio excludes Singapore Savings Bonds, T-bills and Foreign Stocks

^ Divided by 12 months regardless of month of the year.