Dividend Yield 4.6%

Dividend, Passive Income, Portfolio Related, Targets and Action Plan, Top10 2 Minutes

Frasers Logistics & Commercial Trust announced their 2H dividends distribution on 11/11 and it was an increase of ~15% from the same period last year. As it is the last company in my portfolio to announce their dividends, it also finalized the amount of “dividend” that I would receive for this year.

All in all, my portfolio has produced a yield of ~ 4.6% this year – a shade lower than my long term target of 5.0% but it is slightly better than my target of 4.5% set for this year. As I have pumped in more capital into the stock market this year, the absolute amount of dividends received was therefore, slightly higher than last year. I am very pleased to be able to achieve these two feats.

Although I think it would be very challenging to replicate the dividend growth next year due to the lack of active income, I would still try to see if I can make a small step forward. Will see 🙂

As some of you may be interested, below is a table showing the Top10 contributors of dividends in 2021 and 2020,

Ranking End 2021 End 2020
1 Manulife Reit Hong Kong Land
2 OUE Commercial Manulife Reit
3 Ireit UOB
4 Suntec Reit Suntec Reit
5 UOB Singtel
6 Netlink Trust DBS
7 MIT OUE Commercial
8 SPH Reit Frasers Log & Comm Trust
9 OCBC Ireit
10 Hong Kong Land Areit

A quick glance yields a few interesting observations

1 – The leader has changed hands from Hong Kong Land to Manulife Reit. The latter is a heavy weight in my portfolio while I had pared down the former quite a lot given the issues in Hong Kong and the uncertainty in the China property sector.

2 – The Top-10 are mainly the Reits and Banks – not surprising as they have the highest dividend yields and are also my larger holdings in the portfolio

3 – I have replaced

(a) Singtel with Netlink Trust in 2021 as Singtel has reduced its dividends amount. Netlink Trust has also proven to be a good reliable dividend provider.

(b) DBS with OCBC as I had sold the majority of my DBS holdings as it rallied aggressively in the last few months. I took the opportunity to build a larger holding for OCBC as I think it has more “legs to run” compared to DBS. But DBS has proven me wrong again and again … LOL

4 – I have also built up a sizeable holding for Mapletree Industrial Trust – even larger than Frasers Log and Comm Trust and Areit now

5 – Although SPH Reit is featured in the 2021 list, I don’t expect it to be there for 2022 as I have fully exited from SPH Reit following the recent surge in its share price.

6 – But all in all, the 2021 list has a lot of similarities to 2020. They should form the bulk of my passive income going forward.

I hope you find these information useful to you.

Have a safe and great investment week ahead … October has been great and I hope November and December would be even better !!!

Regards

Warriortan

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9 thoughts on “Dividend Yield 4.6%”

  2. Hi, how do you calculate dividend yield? I find yield sometimes misleading. If the stock price goes up, the yield goes down (and stock prices have roughly gone up by 20%+ this year), if the stock price goes down the yield goes up. So high yield is not necessarily a good thing. When it comes to dividends, it seems that what is most important is that the dividends you are collecting are increasing in $ value. A company that pays more dividends in $ terms is usually one that is increasing its earnings and this is not affected by stock price.

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    1. Agreed with you and hence, I tracked both the yield and absolute dividend amounts.
      But as I am more of an income investor, I look a lot at the yield of my portfolio and use the current share price as the denominator instead of cost price.
      In my opinion, this reflects the “value” better.
      If for example, the price shoots up for no particular reason and yields drop, I may consider selling them and reinvesting in other stocks that provide higher yield. When the stock price normalises and the yield increases, I would then consider to buy them back.

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    1. Well, that’s my last dividend for the year. So, very much sums up my passive income and yield. ya, happy with 4.6% yield. And this year capital gain is also good – hence, grateful !

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