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Passive income projection of S$25.3K per annum @ 6.13% yield (Dividends only and exclude CPF and rental income)
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Total stock portfolio and deployable cash for investment is S$425K (excluding investment property and CPF)
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For the past few months, the stock market has been on a see-saw ride after the market correction. I am glad that my significant weightage on REIT component has withstood much of the market downside with vastly lesser volatility relative to other SGX counters.
Key highlights of the following main changes to the portfolio:
1. Sold off all my Netlink Trust holdings at a loss. The stability that I craved for seems to be facing an upcoming technological disruption from the 5G mobile network. The risk of downside has increased significantly relative to the upsides. Decided to re-deploy the proceeds into other oversold listed business on SGX.
2. Purchased 3,500 units of Singtel at S$3.060 per unit. Market has oversold the blue chip. Upsides potential from Singtel. Also since then, TPG has announced possible M&A with Vodafone in Australia.
3. Purchased ThaiBev. Oversold counter. Take out and normalise the prior period fair value gain and the underperformance percentage is lower than the plunge in price. This is one counter that I have been keeping an eye on for its excellent diversity in its principal activities and operations in different consumer markets. Took advantage of the sharp decline to S$0.650 previously and bought 30,000 shares. Looking forward to deploying more cash into ThaiBev if the price dropped further.
4. Increased shareholdings of Global Investment Limited. Fair value a lot higher than market pricing. Even if market downturn, there will be adequate margin of safety to avoid a total investment wipe-out. Looking to re-invest the upcoming dividend proceeds back into the business.
5. Increased shareholdings in Perennial Real Estate Holdings. Capitol hotel operations to commence operations in Q4 2018 and Chengdu integrated development have started operations in Q3 2018.
6. Added Parkway Life REIT as part of a more defensive move and also due to its better pricing after recent market correction for this medical REIT.
6. Added Parkway Life REIT as part of a more defensive move and also due to its better pricing after recent market correction for this medical REIT.
7. Sold off part of Asian Pay TV Trust. The recent quarter results have not stabilised and still in decline. CAPEX deployed are not generating growth but seems to become defensive in nature of existing revenue. Dividends will definitely be cut by next year in view of the poor business performance.
8. Sold off part of Fraser Commercial Trust to diversify the concentration risk. Also the promised growth engine from UK may not have the previously anticipated high upside in view of current Brexit discussion which does not seemed to be going well.
I agree with you on Thaibev. It has been massively oversold of late. The management have made decent acquisitions over the past 12 months or so, setting them up nicely for sustainable future growth. Keep up the good work!
ReplyDeleteHi Singapore Dividend Collector! Yup...ThaiBev has a good management team and with good succession planning in place also to take the Group forward for the next decade. Hope the demand for the beer come back up and then we can reap the capital gain as well as enhanced dividends as the ThaiBev businesses grow.
ReplyDeleteBtw, saw that you have built up a very impressive investment portfolio. I hope to be able to attain the stock/REIT portfolio built up like you in another 4-5 years time. :)