Dividend Plan On Track

dividend yield

It has always been my aspiration to build an overall portfolio that can provide me with a consistent passive income of about 5% dividend yield in preparation for the time when I am no longer active at work. I reckon that my family will need an annual “income” of $72000 or $6000 a month to maintain the current lifestyle, the kids’ education and any medical/dental needs, assuming that my housing mortgage is fully paid and I would have sold my car.

That will translate to a “free-cash” target portfolio value of $ 1.5 Mln, which is a lot! But we need to aim high to habour any hope of reaching anything close to it. Hence, I hope to keep my job as long as I can, stop short of striking ToTo 😉. Some may say that the 5% dividend yield, year in year out, is too optimistic, maybe 3% is more appropriate. If that is the case, then the target portfolio value will have to increase to $ 2.5 Mln. The concept of financial freedom is still far far away from me.


However, I am glad that from the efforts of the last few years, I have managed to build an overall portfolio that I am reasonably confident of delivering 3%, if not 5% yield annually.

Starting from this year onward, I will be tracking my dividend income diligently, and nurturing my portfolios especially the income portfolio carefully.

In the first quarter of this year, I have received 1.24% yield on cost from all my portfolios combined. If I annualise it, I will get 4.96% yield, which I am quite happy with.

This is a great confidence boost for me and it made me more determined to build a robust and sustaining passive income, starting with my income portfolio.

By the way, I am glad that I set up the income portfolio because since then I had managed to resist selling those income stocks time and again. If I have not done so, I think I would have sold a number of them and this would not bring me any closer to my dream of obtaining financial freedom.

In case you are interested, my top 5 dividend generators in 1st quarter are:

  1. Ireit
  2. OUE Commercial
  3. Hutchinson Port Holding Trust
  4. Starhill Global Reit
  5. Cache Logistic Trust

It will be great to get some feedback and learning from your perspectives on what is an appropriate annual passive income that you will target for and what would be your target yield for your income portfolio?

Take care folks.


4 thoughts on “Dividend Plan On Track

  1. Hi Warriortan,

    HPH? Why? Dividends have been decreasing, unit price have been dropping, payout ratio has been ballooning…

    If you have been holding it over the long-term, it would have been eroding value from your portfolio.

    Liked by 1 person

    1. Hi Nerd,
      I just bought some a few months back and more recently after they announced the results and before ex-div. In terms of unit cost price, probably 10% above current share price. After reading a bit more about them, I develop this belief that they may have a chance to turn around their business and maybe the share price will not drop further. Recently I also read that Temasek is also a substantial shareholder of this firm. I guess they must have done some homework to justify keeping their stakes. As Long as the share price doesn’t drop, the current dividend yield is ok. 😊


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