Oops, in the midst of all the excitement around dividends, I forgot to update my Q4 2018 Dividend tracking table. I apologise for this tardiness especially if you plan to use it for your own dividend tracking. I aim to do better next quarter.
A “hefty” dividend week has come and left but thankfully, it left no major surprises. Singtel, Frasers Property, SATS, Starhub, OUE Hospitality Trust delivered on expectations. Despite that, the share price of all these companies hardly moved and in fact, many declined. Investors are probably concerned whether they can continue to maintain this level of dividend yield given what they had read from the financial statements and analysts/newpaper reports.
Singtel dropped to $3.10, Frasers Property to $1.62 and SATS to $4.88 . At this current price level, their annualised dividends yields are 5.6%, 5.3% and 3.7% respectively. In my opinion, they are attractive as I think they can maintain this level of dividends in the coming years. The only regret is that I don’t have so much cash to accumulate.
Having said that, assuming the market is efficient, their share prices are where they are because investors are concerned. So, do your own sums and determine your own investment objectives before considering if they are suitable for your portfolio.
For me, many of you know I am aiming for a 5% dividend yield portfolio. So, I am happy with them.
I am personally concerned with Starhub’s ability to maintain the current dividends of 4 cents per quarter. Hence, I will avoid Starhub at this point. In fact, for those of you who are tracking me on Stockcafe, you will probably know that I have been switching from Starhub to Singtel by taking advantage of the recent rise in Starhub share price alongside M1. I have also liquidated all my holding in M1 if you are curious. I hope by concentrating my telecoms exposure to Singtel, it will pay off handsomely in the end.
Next week, I am most interested in the results released by Accordia Golf Trust (Tuesday 13/11) and Asian Pay TV (Wednesday 14/11). Both are significant dividend contributors in my portfolio. However, of late, their share prices have got hammered down very badly. I am hoping that the coming results will provide assurance to investors on their ability to maintain their dividends and then give a lift to their share prices.
I have recently added more to Accordia Golf Trust at 50 cents. This happened after I had read Mr AK’s analysis – see here. It just reaffirmed my beliefs and analysis. But I know I will need time and patience on my side to see this strategy through. It can take a few years ….
I am less confident of Asian Pay TV. I don’t think it is able to maintain its 1.625 cents per quarter dividend, which translates to an “eye-popping” 20% annualised dividend yield. While I am afraid to add more, I am also reluctant to sell as my capital value has eroded a lot. So, I will adopt a wait and see approach and wait out for the dividend guidance that the management will provide for next year.
But clearly, the market has already made it known where it is expecting the next year’s dividend to be, it would probably be halved … i.e. yielding 10% … which is not bad if it does not fall further. But there are other options.
Anyway, this quarter “dividend show” is coming to an end soon. By the end of this week, I will literally wrap up my dividend story for this year. My current yield for my portfolio has exceeded 5%, now it is to see where it will end up eventually. After that, its target setting for next year 🙂
Have a great investment week folks and good luck!