What a tumultuous start to the new investment in year! With a blink of an eye, 2 months have passed.
My key takeaway so far are:
(1) My equity portfolio lost 6% in value. Mainly in my Growth portfolio, which has the more risky and volatile companies. I had also done some switching out of Growth to Income companies as valuation of the latter became attractive in the last few days.
(2) I have received 1.5% back via Q1 ex dividends and at least 1.2% via Q2 ex dividends. This shows the value of investing dividends paying companies. (On track for 5% target yield)
(3) My index portfolio gained 2% in value with Bonds index and Gold making headway that offset the retreat from Equities and Reits Indices. Index Portfolio continues to show its value to me. (Far far away from my target of 20% gain by end of this year but I still have time)
(5) I am keeping my SSB intact – as a safe buffer against all these volatility and the expected reduction in interest rate globally (and I think Singapore Government Bonds will be no exception). The rise in the price of my Bond index shows that investors are willing to accept lower yield. (I will keep this intact unless absolutely necessary)
(6) I have increased my diversification into US and Hong Kong equities by increasing its holding by 3% from 16% to 19% in my equity portfolio. (My year end target is 20% which is not far away)
Dividend received remains the brightest spot for me.
Below is a screen capture from Stockcafe on my dividend received by months – Green bar is 2020.
As mentioned in the previous post, The combined dividends that I have received for Jan and Feb is the highest I ever have. Very happy about it. I hope it will continue the same for the rest of the year. April and May will be key to watch before Jul and April again. Q4 seems to be a lull period for dividend.
My top dividend paying companies for Q1 are:
|1||Eagle Hospitality Trust (Reit/Business Trust)|
|2||Hutchinson Port Holding Trust (Business Trust)|
|4||OUE Comercial Trust (Reit)|
|5||Frasers Property (Property, Mid Cap)|
|6||Manulife Reit (Reit)|
|7||Cache Logistics (Reit)|
|8||Suntec Reit (Reit)|
|9||First Reit (Reit)|
|10||Tai Sin Electric (SME)|
Most are Reits.
Yes (1) and (2) are among the worst performing companies I have in my portfolio. Thankfully they are still paying dividends, else it would really be disastrous.
My Top-10 holdings at end Feb are:
|3||Eagle Hospitality Trust|
|4||SATS (New Entrant)|
|5||Q & M Dental|
|6||Hong Kong Land (New Entrant)|
|7||UOB (New Entrant)|
There are three new entrants in the Top10 – SATS, Hong Kong Land and UOB. They are the companies that I have been accumulating a lot more than others in the last one months.
Three companies dropped out as a result – Raffles Medical Group, Centurion and OUE Commercial. I divested my stake in Raffles Medical and Centurion significantly as I felt there were better options in the market that appeared with the recent drop. OUE Commercial share price dropped by almost 10% and it dropped out as a result.
In general, I want a diversified group of Top10 companies – so its a mix of Telecom, Banks, Property, Healthcare and Reits/Business Trust.
Only Singtel, my biggest holding has >5% holding in my portfolio. This is already a significant reduction from a year ago when it was in the double digit. By spreading the risk, I hope it helps to reduce concentration on one or two companies and ensure more stable return and less volatility. But correspondingly, I recognise that returns will probably be less too.
Anyway, I hope the market will be calmer this week and we can then review some options in our local stock exchange for some bargain hunting to build up passive income (for FIRE).
All the best – have an enjoyable Sunday and a great investment week ahead.
Will report out again at end of March.