4.7% dividend yield is the final outcome after all the hardwork this year. Total dividend received in 2020 was 85% of 2019 amount – which is expected given this COVID year.
This is actually better than the 4.5% yield that I was expecting back in July when I wrote about it.
This outcome was helped by the 2.6% yield that I received in the first two quarters and some surprising new strength showed by the Reits in Q4, while dividend distribution literally collapsed when results were announced in Q3, which bore the full brunt of the COVID attack in Jan-Jun.
Hopefully what we saw in Q4 would be carried into 2021.
2020 Dividends Honors List
Bulk of the dividends was contributed by the local banks and Reits
Top of the list is #1 Hong Kong Land – Surprise, surprise! It successfully dethrones Singtel who had held this position for the last few years.
Then it is followed by
- #2 Manulife Reit
- #3 UOB
- #4 Suntec Reit
Before Singtel enters the scene at #5 …. Then it is back to banks and Reits again
- #6 DBS
- #7 OUE Commercial Trust
- #8 Frasers Logistics Commercial Trust
- #9 I-Reit
- #10 Ascendras Reit
Compared to 2019 …
This year list of Top 10 companies is markedly different from the previous year Top 10, which are:
- Manulife Reit
- OUE Commercial Trust
- Capitaland Retail China
- HPH Trust
- Frasers Property
- Cache Logistics (or ARA LOGOS today)
- Netlink Trust
Only 4 out of 10 from 2019 managed to make it to the 2020 list.
I definitely like 2020 list more than 2019.
This is because the companies in the former are much stronger and resilient. The list has the 2 local banks (OCBC is actually not far behind just missed out the Top-10 narrowly) and some of the bigger Reits in SGX.
It should position me favourably to reap the rewards when the recovery returns after COVID threat is neutralised.
Top 10 Holdings
Usually the companies in the Top-10 holdings mirror that of Top-10 dividend list closely; except that ranking order is different … and that Frasers Logistics and Commercial Trust was replaced by OCBC
As of today, my #1 holding in the portfolio is Ascendas Reit. This was helped by my subscription for excess shares following the recent rights issue. Singtel was dethroned for the first year.
This is then followed by:
- #2 Singtel
- #3 OCBC
- #4 OUE Commercial Trust
- #5 Suntec Reit
- #6 UOB
- #7 I-Reit
- #8 DBS
- #9 Manulife Reit
- #10 Hong Kong Land
Collectively they represents about 30% of my equity portfolio, which averages out to 3.0% for each one of them.
Ascendas Reit is 3.3%, so you can deduce that the difference between the first and the last is not very big.
I like this setup a lot more than what I had at the start of the year. Back in Dec 2019, the collective holding of the Top-10 companies was almost 40% and a few of them was above 5% individually.
This year distribution is flatter and more even. I would think that it means it is more diversified; i.e. lower risk.
I believe I am getting closer to my ideal local equity portfolio and I feel I have the COVID impact to thank for. If it hasn’t happened, it would not force my hands and bite the bullets to take some losses.
This latest portfolio will definitely be one that I would like to keep as a core …… though I don’t rule out I may still trade around them if I feel that they are overvalued or undervalued momentarily.
Ok, this is the 2nd part of my reflection. My first is here.
I think I may have the energy to go for the 3rd one this weekend. I think I would talk about my diversification journey into overseas markets and my index portfolio.
Do have a great week ahead.
And Merry Christmas to all.