Saturday 20 May 2023

Portfolio Updates- 2023 Quarter 2 Dividends of S$9.7K (1st Half Dividends of S$34K) and Recession Fears.


I am surprised that my 2023 Q2 dividends is projected to come in higher than initially expected at S$9.7K. This thus brings my entire first half dividends contribution to be approximately S$34K which if annualized, will be S$68K and is way higher than my original annual forecast on 30 April 2023.

ComfortDelgro announced a special dividend recently and Hong Leong Finance also benefited from the higher interest rate environment albeit its traded market price remaining at a huge discount to its NAV. Netlink Trust also announced a higher distribution to unit-holders for their first half results.

Upcoming Economic Recession Crisis and What I Intend to Do?
I have seen some fellow bloggers preparing to take up a larger cash position (there was one who mentioned 50% of assets in cash) while anticipating the global economic turmoil to worsen drastically in the 2nd half of 2023. I intend to leave my current investments as it is as I do not like to time the market. For all we know, the current stock market may already be factoring in the economic recession- that is why the usual adage goes that the stock market is moving ahead of the actual economic climate by 6 months.

Parting thoughts
I think that the era of dirt cheap financing (at close to 0% interest rates) after the last major Global Financial Crisis in 2008 is over. The Feds may cut a tiny bit next year to stimulate the US Economy but high interest rates environment maybe here to stay for the next decade. The greatest risk for Singapore is whether our "invincible" property market will crash one day from such high mortgage rate and this may have a tsunami domino effect on our stock market should this day comes.

2 comments:

  1. Much appreciate you can share with me with your stock dividend record summary formula spreadsheet.

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    Replies
    1. Hi Mate, no problem sharing.....it is from Stocks Cafe.
      1. Link as follow: https://stocks.cafe/
      2. Copy and paste data of your portfolio keyed into Excel then just use "Pivot table" to massage the data.
      :)

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