My Investment Portfolio - SG (End Dec 2023)

 

Extracted from Stockcafe

Transactions:

- Added 150 units of Mapletree Log Trust via scrip dividends at $1.437

My portfolio no longer hover between red and green. It is now green due to the recent rally by stocks and mainly Reits. The market has, as usual, been very forward looking. Take a look at the CME Fedwatch Tool on the interest rates probabilities below.

The market has rose, especially Reits, pricing in expected interest rates cut in 2024. In fact, the market is pricing in interest rate cut of 0.25 on 20 March 2024 and an interest rate of 3.75 to 400 by end 2024. It is important to note that these are probabilities based on today's environment. The context can and will change with each passing days, whether the Fed achieve a soft landing is also another question. 

I cannot predict the future, I can only try to understand why the market has rose recently, as explained above. At the same time, understand what impacts the interest rate and the measure to take whether it is cut, remain the same or increase. As always, I do not time the market. I buy what I perceive as fundamentally sounded stocks and continue to build this portfolio bit by bit. There is no need for me to FOMO at this point since I have been buying Reits in the last 2 years, in anticipation of interest rate cuts.

Dividends received* during the month: $1,691.68 (Frasers Logistics & Commercial Trust, Singapore Telecommunications Ltd, Mapletree Pan Asia Commercial Trust, Singapore Technologies Engineering Ltd, Mapletree Ind)

Total dividends received in 2023: $18,777.94

Average dividends per month^: $1,564.83

Total Portfolio Market Value: $373,885.08

* 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. 

2023 My Review & Dividends - $1.5k dividends per month, 5.63% dividends yield

2023 was a year where investors track the inflation rate and speeches of the US Fed bank members closely. From inclusion to exclusion of certain words, it made a big difference.

My portfolio is in the green as Reits have recently increased due to expectations of rate cuts in 2024. As of time of writing, my portfolio value is $361,431.80 compared to my capital $349,768.24. If all goes well, when the rate cuts come in, my 2023 purchase of Reits will help pull my portfolio up. But history has shown that life is not so simple and things may not go as planned. 

Click image to enlarge. Some stats are from stockcafe

For the year of 2023, I have collected a total of $18.777.94 of cash dividends, a 39.4% increase compared to 2022. This means that I have crossed the $1,500 dividends per month milestone. To be exact, dividends collected for 2023 is at $1,564.83 per month and $51.45 per day. Also, my portfolio average dividends yield has hit 5.63%. This is the highest in my investment journey and it is above CPF's interest rate. The yield was pulled up by the local banks (i.e. DBS and OCBC) that I purchased during covid19 period.

The dividends amount and yield would have been higher if I had not chosen scrip dividends for  Mapletree Industrial Trust, Lendlease Reit and Mapletree Log Trust. I had chosen scrip dividends as these stocks were still fundamentally sound and I had taken a long term view to continue adding the stocks. 

In terms of total dividends collected since I started this journey, I have collected $78,049.25.

This year I made a total of 16 transactions. 14 were buy/add/scrip/preferential offering transactions and 2 sell transactions. The 14 transactions were mainly for reits/trust except for Keppel Corp and Seatrium. I have been buying Reits in anticipation of the interest rates cut which will happen. The question is when it will happen. The 2 sell transactions were for Seatrium and Suntec Reit. Seatrium was given due to the Sembcorp Marine acquisition of Keppel O&M. I decided to sell to realise the 'gain'. Whereas for Suntec, I have held it for 10 years and the dividends has not been increasing. 

While most people do not bother to track the number of transactions made, I make it a point to do so on a yearly basis. I do so because if there are too many transactions in a year, it could mean that I am too trigger happy and have not been buying or selling at an optimal quantity to minimise transaction fees. Also, if there more sell transactions, it would mean that I would need to review why. Have I been buying stocks that are not fundamentally sound or did I panic sell? As an investor, I should have more buy compare to sell transactions.

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

My CPF Strategy - Reached Full Retirement Sum (FRS) of $198,800 in 2023

Everyone of working age would have definitely have heard of Central Provident Fund (CPF). At individual level, they either love it or do not like it. Those who do not like it may feel that it is a forced saving and fear policy changes impacting the scheme or even that it is a scam. In some cases, they may have been misinformed. Whereas those who love it understands the benefits and maxmises it. 

I used to belong to the camp that did not like it mainly because of the fear of policy changes and I felt that I could earn more through investment rather than have the money sitting in CPF earning up to 3.5% (for OA) or 5% for (MA and SA). 

I was too naive. Having embarked on the investing journey sine 2011, I realised that it is not easy getting a portfolio yield of 5%. From my records, I have not even reached 5% yet, even after 11 years.  But bearing unforeseen circumstances, I should get above 5% this year. Due to this experience, I decided to explore CPF and join the 1M65 telegram group. As I understood CPF more, I appreciated it more. I decided to explore ways to maxmise it without topping up with cash unnecessarily as there was still a policy risks such as changes to withdrawal age. 

I had two immediate priorities. The first was to transfer excess money from OA to SA to earn a higher interest while balancing the need that I still need OA for monthly deductions for housing. This was not an easy decision as this transfer is irreversible. If I am out of job, I could run into the risk of having to use cash for my monthly deductions when my OA runs out. Hence, proper planning is important and it is essential to ensure that you have at least 6 to 12 months of buffer for your monthly deductions.

Second, reach MA Basic Healthcare Sum (BHS), so that contributions meant for MA would flow to SA instead. I had actually reached BHS since 2022. When 2023 started, I did a top up of $2,500 to my MA using cash in January. Also, whenever I had deductions in MA for insurance, I topped up the shortfall in amount to reach BHS in the same month. This is because I wanted my contributions meant for MA to flow into SA. This is a win win situation for me as based on my income assessment projection, my cash top ups to MA will be eligible for tax relief.

Source: CPF

Now that I reached FRS in 2023, at the age of 39, the bonus is that my OA will increase at a faster rate. This is because MA contributions meant for SA will now flow into OA instead as my SA has reached FRS. 

I know that there are some flaws and risk with the scheme such as policy risk. Also, the effective interest rate is actually lower because 
a) CPF interest is calculated based on lowest balance of that month (vs interest being calculated based on average daily balance); and

b) CPF interest is paid out in the start of the next year (vs interest being paid out in the next month, allowing compounding).

These 2 points, are unlike the usual interest calculation in Financial Institutes. 

I do not know who thought of the CPF mechanism. But it is so well though through. What I type here covers just 2% of the CPF mechanism. Kudos to the CPF team. It is not easy coming up with the policy, refining it and operationalising it. 

With this, I have already decided several years back that CPF will be my safety net. We will all have different view regarding anything, and this certainly applies to CPF too. As I am fully into investing of equities and bond, should my investments fail, CPF monthly payouts will be my plan B. I have also decided that this strategy is for me, I am unlikely to purchase a 2nd property and use it for passive income or investment. My personal take is I will consider a 2nd property only if both my spouse and I:
- max out FRS;
- have cash on hand to top up to ERS when we reach 55 years old; and
- have cash on hand for a second property.

All three conditions must be fulfilled before I consider a second property. 

What is your CPF Strategy?

My Investment Portfolio - SG (End Nov 2023)

 

from stockcafe

Transactions:
- Given 1,240 Keppel Reit bonus share by Keppel Corp (1 Keppel Reit for every 5 Keppel Corp)

My portfolio is currently hovering between red and green (i.e. unrealised loss and unrealised gain), which I find quite exciting as it means there are more opportunities for me to consider adding stocks.  Reits have gone up in terms of price and I felt that the price of Raffles Medical is more compelling. But I have not added it yet. 

This month, I had also submitted my notice of election for Maple Logistics Trust to opt for partial scrip dividends instead of fully cash dividends. The opportunity to get the share at $1.437 is just too good to ignore. 

Will share about my full year dividends for 2023 soon as the dividends have been declared. 

As for Singapore Savings Bond (SSB), I am surprised to received full allocation. I had expected this SSB to be very popular. Hence, I have used both my wife and my own CDP accounts to apply for the SSB. Nevertheless, I am so happy to get full allocation across both accounts!

Dividends received* during the month: $1,708.94 (Suntec Reit, Astrea 7 Class A-1 Bonds, DBS, Keppel Corp)

Total dividends received in 2023: $17,086.26

Average dividends per month^: $1,423.86

Total Portfolio Market Value: $352,450.85

* 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. 

My Investment Portfolio - SG (End Oct 2023)

 

Transactions made:

- Added 2,500 units of CapitaLand Integrated Commercial Trust at $1.77
- Added 2,000 units of CapLand Ascendas Reit at $2.53

My portfolio turned red on 19 Oct 2023 and it was the signal for me to purchase something, especially if the stock is fundamentally sounded. Hence, I nibbled on Ascendas Reit on 20 Oct. I am so grateful that I am using stockcafe as it allowed me to easily track my portfolio on a daily basis (e.g. when my portfolio turn red or green, how red or green it is, track dividends, payout of dividends). 

I had also added CapitaLand Integrated Commercial Trust (CICT) on 6 Oct. Ironically, last month, I had also purchased CICT on the 6th of the month too. I am now on a buying spree, having made three transactions since September. I have so many stocks that I want to nibble on. But I must maintain discipline to pace myself out since I do not know how low the Reits will go. Even if Reits start going up and I have not further nibble on it, it is fine. There will always be opportunities. I am quite clear that I will never be able to time the market (i.e. sell at the highest and buy at the lowest).

A shout-out for Singapore Savings Bond, this month's batch is the 2nd highest in terms of overall yield in SSB history. I am definitely going to apply for it using my wife's warchest. I may even apply for it using 2 CDP accounts. As usual, I will decide only on the last couple of days before the deadline so that I can have a rough sensing on whether the next batch of SSB's yield would be higher. 

What do you do when your portfolio turns red?

Dividends received* during the month: $39.25 (CapitaLand Ascott Trust)

Total dividends received in 2023: $15,377.32

Average dividends per month^: $1,281.44

Total Portfolio Market Value: $340,003.68

* 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. 

My Investment Portfolio - SG (End Sep 2023) - Achieved 2022 dividends amount in Sep 2023.

 

Stockcafe

Transactions made:

- Bought 2,500 units of CapitaLand Integrated Commercial Trust at $1.89

With this purchase, this marks my first purchase into CapitaLand Integrated Commercial Trust (CICT). I used to have CapitaMalls Asia which includes local malls in its portfolio 9 years ago. However, it was delisted. CICT's portfolio is more diverse as it includes office, retail and integrated development. It is not really defensive due to its office portfolio which is why I had been so reluctant to add it until I had a bigger portfolio.  

With the dividends in Sep 23, I have collected $15,338 of dividends in 2923, which has exceeded the total amount of dividends collected in 2022 (2022 total dividends was $13,417). This is an important indicator for me as it shows that my passive income (and portfolio) is growing. I hope this trend of year to year increase in dividends continues. Coincidentally, I also exceeded the total amount of dividends collected in preceding year in the Sep 22. I am mindful how it is getting harder to save due to family commitments and moreover we are going for a 'lighter' load in our career which means a pay cut. Furthermore, there is a series of upcoming price hikes...from GST, transport, electricity, water prices to school bus. 

I had been bidding T-bills in the last few tranches but had always not gotten them. This week, I got a pleasant surprise when the T-bill cut-off yield was 4.07%. I am expecting the next tranche of Singapore Savings Bond  (i.e. Nov 23 SSB) to have the 2nd highest 10 years effective interest rate, and I would likely ballot for it. For reference, the highest 10 years effective interest rate is 3.47% (SBDEC22 GX22120S).

Dividends received* during the month: $1,968.50 (Lendlease Global Commercial REIT, CapitaLand China Trust, Mapletree Logistics Trust, Mapletree Pan Asia Commercial Trust, Keppel DC Reit, Mapletree Industrial Trust)

Total dividends received in 2023: $15,338.07

Average dividends per month^: $1,278.17

Total Portfolio Market Value: $352,732.1

* 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. 

My Investment Portfolio - SG (End Aug 2023)

 Transactions made:

It has been a very busy month so this will be a short post. Spent majority of my time on non-core work (aka CCA work). I did not manage to monitor the stocks or even subscribe to some PO or scrip dividends. In such scenario, I let them portfolio run by itself since this was how it was built - a portfolio that allows me to sleep soundly at night and with minimum supervision. Fortunately, this non-core work has just been completed. I can now catch up on my core work and shift my focus back to this portfolio. 

I am waiting early for the upcoming Oct2023 Singapore Savings Bond as I am expecting it to give higher returns compared to the last few tranches. 

Dividends received* during the month: $3,275.46 (Singapore Technologies Engineering Ltd, Comfordelgro, IREIT Global, Wilmar, CapitaLand Ascott Trust, Suntec Reit, Oversea-Chinese Banking Corp, DBS, Singapore Telecommunications Ltd, Keppel Corp

Total dividends received in 2023: $13,369.57

Average dividends per month^: $1,114.13

Total Portfolio Market Value: $353,224.19

* 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. 

My Investment Portfolio - SG (End Jul 2023)

 

Transactions made:

- Added 2,000 units of Ireit Global at $0.408 via rights application
- Added 2,000 units of Mapletree Industrial Trust at $2.28

With just 50 units of Ireit Global, I had been waiting for a rights issue to round up the shares to hundreds. But guess what... while I did apply for excess, I forgot to apply in 50s to round my overall shares to hundreds (facepalm).. Anyway, with 50 units, my eligible units was 8. I applied for excess of 1,992 more and did not expect it to be fully allotted. If I knew that, I would have applied for alot more excess.  

I also bought more Mapletree Industrial Trust (MIT) at $2.28 as I continue my investment journey. I wanted to add banks, but kept missing the boat since orders did not get fulfilled. Meanwhile, it was a fruitful month for T-bills too. I managed to get all three tranches of T-bills, the 6-months and 1-year ones, for my partner. This also marks the first time, we got a 1-year T-bill after trying it for so many rounds and not being successful.

CME FedWatch as of 29 Jul 23

As expected and shared in my post last month, US Fed hiked the interest rate in end Jul. The next meeting is on 20 Sep. As of 29 Jul 23, the market has priced in US Fed maintaining rates (i.e. no more hikes) until 1 May 2024 where the first rate cut will take place. 

In the meantime, my journey continues whether the hikes continue, pause or cut. I am still watching out and waiting for banks to drop to my desired price. Meanwhile, I am waiting for September SSB's interest rate to be announced in early August. There is quite a high chance that the effective interest rate over 10 years will be above 3%. When that happens, I will need to make a decision on whether to redeem the previous batch of SSB I got last year. In my more than 10 years journey of making my money work harder, I realised that I have trained myself to plan in advance. 

Dividends received* during the month: $504.68 (Mapletree Industrial Trust)

Total dividends received in 2023: $10,094.11

Average dividends per month^: $841.18

Total Portfolio Market Value: $364,900.97

* 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. 

My Investment Portfolio - SG (End Jun 2023)

 

Did not make any transactions for my portfolio as I allotted all the transactions (MIT and T-bills) to my wife's portfolio. 

I am in a dilemma on whether to continue to deploy my warchest as US Fed seems to be in a catch 22 situation. Now it seems additional rate hikes are likely and the next hike should be on 26 Jul 2023. Because if they continue to pause, the next opportunity will only come 2 months later on 20 Sep 23. The questions we need to know next are i) how many more hikes will there be and ii) when will the first hike cut be. 

No one really has the answer as the situation is so dynamic. It depends on so many factors such as inflation, jobs, jobless and wage growth numbers. Also, whether the system breaks and a recession comes. 

I am tempted to add on to DBS and OCBC since there is at least one more hike and that the next rate cut is going to come much later, probably in 2024. What is holding me back is that (i) NIM has likely peaked and (ii) probability of prices dropping is higher than it going higher or being maintained. But banks should continue to do well since interest rate will remain high for sometime. But (another but..), our local bank stocks typically peak 6 months before US Fed bank's interest rate's peak and all it takes is for a system to break and a recession is here. When that happens, bank stock prices drop. 

As for Reits, the considerations are similar. It all depends on US Fed. After all, risk free interest rates for the likes of T-bills is now at 3.89%, compared to Reits yield of around 4.5 to 6%. The risk of DPU dropping will remain as long as interest rates are increased or remain high. I have added quite a fair bit of Reits over the past 2 years in anticipation of rates being cut in 2024 or 2025. Reits now account for over 50% of my portfolio. In fact, among my top 5 holdings, 3 of them are reits. With my long term view (and trigger happy fingers), I will likely find something to purchase again, whether reits, bank stocks or more T-bills.

I should not be adding anymore SSB for now unless the new SSB's 10 years effective interest is above 3%. This is because, all my current SSBs' 10 years effective interest are 3% or more.

Over the second half of Jun, I noticed my overall portfolio value dipping slightly into the red (i.e. unrealised loss) and then recovering being positive again. When my portfolio value turns red, it is normally a signal for me to buy more. I monitor this via Stockcafe. I seldom share about this stock tracking management platform. It has been a lifesaver for me in helping me track my whole family's portfolio. I was surprised to note that I have actually been using it for more than 7 years! 

From stockcafe (30 Jun)

Dividends received* during the month: $1,986.40 (Ascendas Reit, Frasers Logistics & Commercial Trust, Mapletree Pan Asia Commercial Trust, Mapletree Industrial Trust, ST Engineering)

Total dividends received in 2023: $9,589.43

Average dividends per month^: $799.12

Total Portfolio Market Value: $344,939.73

* 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. 

My Investment Portfolio - SG (End May 2023)

 

Transactions made:
- Added 2,000 units of Ascendas Reit at $2.75

The last time I purchased a stock was in Feb. I am glad to have bought something again after three months. Ascendas Reit is a stock in which I had been eyeing and I am glad to have added it as it gives a yield of just above 5%. This purchase is really for the long term as the USA Fed Bank may not be cutting interest rate this year. I had also added more of this stock at $2.69 for my wife's portfolio.

In the meantime, I am keeping a close watch on the other Reits and even Singapore Banks. Mapletree Industrial Trust has dropped quite a fair bit and the price looks so tempting. I might add on the stock next week if it continues to drop. 

As for the Singapore banks, I am keeping a close watch because historically they tend to peak 6 months before USA Fed Bank cut the rates. They have already fallen from the peak and now the question is how much more will the price drop.  I am actually looking at purchasing more DBS at around $25.5 as the price to book ratio will be 1.2 then. Currently, DBS price is at $30.6 with a book value of $21.41. This means its price to book ratio is 1.43, which is above its 5 years average. 

One interesting note. There has been sexy big terms in investing such as Sustainable Investing, Responsible Investing, Eco-Investing, Green Investing and the list goes on and on. Recently, I noticed a new term called Impact Investing. We humans are really good at innovation and marketing. 

Dividends received* during the month: $4,082.18 (Suntec Reit, Astrea 7 Class A-1 Bonds (4.125%), Raffles Medical, DBS, Mapletree Logistics Trust, Oversea-Chinese Banking Corp Ltd, ComfortDelGro, Wilmar, Keppel Corp, Singapore Technologies Engineering Ltd)

Total dividends received in 2023: $7,603.03

Average dividends per month^: $633.59

Total Portfolio Market Value: $340,214.4

* 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. 

My Investment Portfolio - SG (End Apr 2023)

 

No transactions were made in the month of April 2023. 

I have been looking out for months, but has not bought anything. Not much opportunities and I have been telling myself to be patient, but I must say that I am getting very trigger happy. I also did not have any luck in T-bills balloting.

Meanwhile, I have been monitoring the stocks result especially REITS as they are facing higher borrowing cost. thanks to a friend who noticed and pointed out that Mapletree Industrial Trust has reported a negative loss for 4th Q FY22/23.

Mapletree Industrial Trust 4Q FY2223

As shown in the image above, Mapletree Industrial Trust reported a $110 million loss in "Net fair value (loss)/gain on investment properties and investment property under development". This resulted in a loss for the quarter. Quite disappointed that Mapletree Industrial Trust is not transparent and share with shareholders the reason for this $110 million loss.  They should explain this in their powerpoint without anyone asking. 

 

Dividends received* during the month: $984.4 (DBS)

Total dividends received in 2023: $3,520.85

Average dividends per month^: $293.40

Total Portfolio Market Value: $349,540.4

* 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. 

My Investment Portfolio - SG (End Mar 2023)

 

Transactions made:

- Received 175,582 units of Sembcorp Marine (This is due to Keppel Offshore and Marine combination and the asset co-transfer, as well as the distribution of Sembcorp Marine shares)
- Sold off 175,500 units of Sembcorp Marine at $0.12
- Added 200 units of Mapletree Ind Trust at $2.3255 via scrip dividends
- Added 150 units of Lendlease Global Commercial REIT at $0.6788 via scrip dividends

There were many transactions this month, but majority were as a result of corporate actions and not deliberate purchases made using warchest. I was disappointed that none of my orders to add Ascendas Reit and CICT were fulfilled.

I have no luck in recent T-bills too. I have not managed to get allotted with any 6 months T-bills since mid Jan 23 and my laddered T-bills from Aug 22 had matured since Feb 22. As these safer instruments were purchased mainly using my wife's warchest, her warchest has been growing. ps: The stocks above are mainly my portfolio, not hers.

I hope that the month of Apr will present opportunities for me to grow both my wife and my portfolios.

Dividends received* during the month: $2,496.65 (Ascendas Reit, Lendlease Reit, CapitaLand China Trust, IREIT Global Reit, Mapletree Pan Asia Commercial Trust, Keppel DC Reit, Mapletree Logistic Trust, CapitaLand Ascott Trust)

Total dividends received in 2023: $2,536.45

Average dividends per month^: $211.37

Total Portfolio Market Value: $344,544.38

* 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. 

Accounting for Keppel Corp’s disposal of Keppel Offshore & Marine

Sembcorp Marine acquisition of Keppel Offshore and Marine (O&M) was great news for Keppel Corp shareholders. I was please seeing Keppel Corp go asset light and cutting off their O&M business. But this whole scheme of things was so complicated! I had a really hard time trying to account for this transaction.

The proper way to account properly on paper was to do the following:
a) Sell Keppel Corp at $7.34, which is its closing price on 22 Feb 2023;
b) For every 1 unit Keppel Corp owned on 22 Feb, buy 19.085033835 units of Sembcorp Marine at $0.134, its closing price on 22 Feb 2023; and
c) Buy back the exact number of units of Keppel Corp you sold at $4.7826. ($4.7826 because it is the adjusted-for-distribution price; $7.34-(19.085033835*$0.134))

But because I want to track when my different tranches of Keppel Corp transactions will be freehold, I had to use a different method. Since I sold off my Sembcorp Marine stocks on the very first day (i.e. 1 Mar 2023), I could use the value of that sold transaction for this accounting. I treated the value of the sold transaction as cash dividends and accorded them to my Keppel Corp holdings. 

The flaw is that my dividends recorded in stockcafe is now inflated by this. I need to mindful and remember to take note of this. 

Which method did you use to account for this or did you use other methods? 

My Investment Portfolio - SG (End Feb 2023)

 

Transactions made:

- Added 2,000 units of Mapletree Industrial Trust at $2.39
- Added 500 units of Keppel Corp at $5.66
- Added 500 units of Keppel Corp at $5.40

February was an exciting month as I made three purchase transactions and the local banks released their results announcing dividends increase. DBS even announced special dividends. Companies such as Wilmar, Raffles Medical and even Comfortdelgro announced dividends increase. This is getting so exciting. At the same time, I am mindful that we cannot celebrate too early as we will not know how the full year will be. But these increase in dividends will help mitigate the decrease in dividends announced by REITS.

Whether the USA Fed Bank cut interest rates this year or in 2024 or even later, my personal view is that I am well positioned to ride this out. If interest rate remains high, banks will continue to earn high profit through NIM. On the other hand, if interest rate is cut and low, REITS borrowing cost and gearing will trend downwards. So having a diversified portfolio is important.

As I was reviewing my portfolio, I was surprised that Mapletree Industrial Trust (MINT) accounted for 14% of my portfolio. I need to watch what I purchase next. But frankly speaking, MINT still looks so  attractive . Moreover, I participated in MINT's Distribution Reinvestment Plan (DRP), opting for partial shares and cash. I am also likely to opt for Lendlease's DRP. I hope there is an opportunity for me to add to Ascendas REIT, MLT and ST Eng in the near future.

Dividends received* during the month: $39.80 (Suntec Reit)

Total dividends received in 2023: $39.80

Average dividends per month^: $3.32

Total Portfolio Market Value: $339,541.57

* 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. 

10 Learning Points In My Investment Journey

I have been in this journey since 2011 with the aim to generate passive income to off set my daily expenses. During this journey, I found out about Financial Freedom and FIRE (Financial Independence, Retire Early). I hope I can reach such a stage. Since I started the journey, I have learnt several learning points which I thought would be useful to document down these learning points. This would be a useful reminder for me and it could be helpful to you.

Investing is like growing a plant, you need to give it attention and provide it with tender loving care. Providing it with water, fertilisers and pesticides in adequate amount at the right time. When its leaves and branches are too overgrown, you will even need to prune it.

Your boss or company is not going to plan your retirement and look after you after you retire. When you or your boss leave the organisation, you each go your own way. You are in charge of your own finances, retirement and life. If you do not work on this yourself, no one will and no one can help you. 

1) Know yourself 

You need to understand yourself. Who are you? What motivates you, your strengths and weaknesses, and emotions. Are you emotional or calm? Are you disciplined and a numbers person, or do you buy on gut feel and hearsay. 

What are the reasons you buy a particular stock for? Always fall back onto these reasons before you buy more or sell.

By knowing yourself, you will know your strengths and weakness, and what you should watch out for.

2) Ask yourself whether you are a trader or investor? 

If you are a trader, there is no point reading on as I am an investor and everything here is for an investor. As an investor, I am not looking for quick gains. I buy fundamentally sounded stocks and do not monitor their prices frequently unless there are business news that impact it. I intend to hold these stocks until they reach 'freehold' (i.e. dividends cover the stock purchase cost). Unless something fundamentally changes and I do my due diligence,  I will cut off the share, even at a loss. 

Take for example I cut off Hyflux at a loss of 67.2%! Had I held on to it, the loss would have been nearly 100%. 

If you are emotional, then you need to take a timeout when market crashes and ask yourself why you bought the stock and if that reason is still valid. Panic selling will not help you. 

3) Do not buy penny shares

Yes, I know that penny shares are cheap and that they are more affordable. When you start your investing journey, you are likely to be FOMO (fear of missing out) and want to flip (make a profit) a few times. But the reality is that you may loss all. 

Also, when you start your journey, you only have a limited amount of capital and buying penny shares allow you to buy more number of shares compared to blue chip shares (or those listed in the mainboard).

Penny shares are cheap for a reason. Most of the times, they are small companies. I get it that there are gems such as ifast, but these cases are rare. 

Success is not always what you see

4) Buy blue chips

Blue chip stocks are generally more expensive for a reason. These stocks are from well-known and established company, with track records. Buying them provides me with a peace of mind and allow me to sleep soundly. 

Investing in blue chips may not make you rich fast, but it will get you there. Do not rush the process. 

5) Never chase dividends yield

There are reasons why a particular stock has high dividends yield. Its yield is high to compensate for a higher risk. If you are buying a stock with high dividends yield, you need to find out why it is offering such a high yield and whether your portfolio can manage the risk.

In 2013, Asian Pay Television Trust IPO and was offering a high dividend yield of around 8.5%. Its IPO price was then 97 cents. Many people were sharing about its high yield and subscribed to it. I did not subscribe due to its declining business. Today, its share price is $0.11, with a yield of 9%.

Need 1 more example? Eagle Hospitality Trust IPO in May 2019 at US$0.78 with a projected yield of 8.2%. Today, its share is suspended after one of its units defaulted on a loan.

6) There is no free lunch 

If it is too good to be truth, it probably is. You reap what you sow. You need to do your homework and due diligence. Do you want to plant the seeds now and monitor it or just buy on hearsay or rumours? 

7) Observe your surroundings

Instead of using the phone constantly (on the train and bus, and at restaurant and malls etc), observe your surroundings wherever you are. Is the place crowded? Are people spending money or just walking pass or doing window shopping? What are most people using and doing? 

Doing this on a constant basis, you will know what is in demand and what is not. This has impact on stock prices. 

The more you see the more you learn

8) Think ahead of others 

The stock market is efficient and typically prices move 6 months to a year in advance, in anticipation of the impact on their financial performance. 

9) Stop procrastinating

The first step is always hard. If you do not plant the seeds now, you will not get the fruits or tree full of shade years later.

First step is the hardest

10) Do not be dishearten and do not give up

Investing is a slow and long journey. Know what is your end goal and be realistic about it. Do not give up easily. 

My own investing journey was so slow that I questioned myself. But I never gave up and tried and tried. I build my portfolio slowly bit by bit. Today, I am really proud of this portfolio and I hope I am right about this. Time will tell. The journey and lessons learnt have also made me stronger and wiser (I hope), 

Let me know your thoughts and learning points too. 

My Investment Portfolio - SG (End Jan 2023)

 

Ironically in the year of the water rabbit and the wet weather, I had a dry harvest for the month of January. No transactions made and no dividends. For the first time, no dividends was received in the first month of the year since 2016. I am expecting dividends to start coming in from February and this year's dividends should exceed last year's one (fingers crossed).

I am expecting myself to make transactions soon, as the laddered T bills structure that I started since August 2022 would mature from February 2023. 

I doubt my top 5 holdings will changes drastically. 

I had been constantly nibbling and adding on Reits last year despite the sell down. Now that the tide seems to have turned. I am debating whether I should sit back or still add on. I have a big portion of my portfolio, nearly 50% in Reits. But chances are I am still looking at Reits.

Dividends received* during the month: $0

Total dividends received in 2023: $0

Average dividends per month^: $0

Total Portfolio Market Value: $349,158.98

* 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.