My overseas equities holding has dropped from 26.5% to 26.1% of my total value of equities. It may reduce even further by my time tomorrow morning when the US market closes as the futures are showing deep red now.
Actually the S&P 500 and Nasdaq have been doing quite well this week, but so has STI. The local index also rose about 3% this week, buoyed by the rising share price of the 3 local banks, which in turn were supported by the rise in interest rate (as seen in the 10 years Treasury Bond).
But my overseas holding dropped also because I took the opportunity to trim off some of my peripheral and more speculative US counters. The volatility in the US market was really scary to me. But as they say, one man’s meat is another man’s poison. I am sure this volatility would be perfect playground for those full time traders – who can win in both bull and bear market by trading the volatilities.
I am most glad that my investment in ARKK was very positive as of close of US market yesterday. It has given me a return of almost 5% in a short 1-2 weeks. But my stake in ARKK is small and hence, it is not a needle mover in terms of absolute return. I do hope to build up a sizeable holding of ARKK in future; will be on the lookout to accumulate more on a regular basis or opportunistically whenever there is a sharp correction.
Coming back to the Singapore market, Dairy Farm and Hong Kong Land released their full year results and proposed dividend distribution yesterday. They were the last in my vested local companies to report their results. Now, I can tabulate the dividends that I would be collecting in the coming quarter.
My calculation shows that they add up to make 1.6% yield on my equity portfolio.
I think it is not bad as I would expect more companies like Singtel and Netlink Trust to declare their dividends in Q2. Hence, the yield by end Q2 may just go up to 2.0 to 2.5%. This is on track to hit my target of 4.5% annual yield.
I am also collecting dividends in my index portfolio.
Some of ETFs which have high dividend yields like Lion Phillip SReit ETF, STI ETF, had distributed their dividends in Q1. As of today, the yield of my index portfolio has already hit 1%.
I am less aggressive in setting the yield target for my index portfolio as 30% of this portfolio is bond related ETFs and SSB and 5% is Gold ETF. The Bond ETFs and SSBs do not give high dividend yield, max is ~2% and Gold is zero. Hence, my target for index portfolio is 3%. Thus, having achieved 1% by March is actually quite encouraging to me. It put a smile on my face.
My reason for investing is to build passive income.
Therefore, having a regular and stable stream of dividends is very important to me. I speculate in the market at times but it is just for the excitement, I always remind myself the reason why I am here in the market so that I will remain grounded and have a good chance of achieving my goal in the end.
For me, to achieve FIRE is still a long way to go.
It may probably happen by the time I can collect my CPF life payout at 65 years old. But I am glad that I am making some progress now and hopefully FIRE can be achieved early.
Meanwhile, do sit tight if you are heavily invested in the US market, it looks like another big swing tonight.
For the rest, I hope you are also collecting dividends in your bank as you are enjoying the activities that you like – the BEAUTY of DIVIDEND INVESTING.
Take care and stay safe folks.