Mid Year Review (5) – Tracking Well, 3.54% Dividend Yield YTD

I measured the success of investment by the dividends that I get. I am an income investor.

My investment aim is to build a portfolio that would provide me with adequate passive income when I retire.

As the title suggests, the dividend yield of my equity portfolio as at 12 Aug is 3.5%. The last company in my portfolio had reported its dividend distribution yesterday.

Bulk of the yield, or 3.1% to be exact, comes from SG listed companies. This is expected as 60% of my equity portfolio are SG listed companies and they offer good dividends.

Regular readers of my blog would know that I used to target 5% yield.

But in recent years, I have decided to adjust that downwards to 4.5% as I have diversified my holding to include US equities which pay very little dividend.

At the rate that it is going, I think the dividend yield for equity portfolio at the end of the year would be around 4.4%, which is close to my target. I am happy with this achievement.

This is higher than the expected dividend yield of my index portfolio which is 2.5% as shared in my previous post.

As some of you may be interested to know, let me share my top 10 dividend contributors as follows:

They are 7 Reits, 2 Banks and 1 Electronic Company. All are listed on the SG stock exchange.

Top 10 Dividend Contributors (Q3 2022)

In Q4 2022, only MapleTree Industrial and Logistics Trusts will distribute dividends. The rest are “done” for the year”. So the ranking order is likely to remain quite constant to end of the year.

By the end of the year, I expect

  • MIT to take the throne
  • MLT to move a few notches up
  • Netlink Trust to squeeze Manulife Reit out

In the process of building up my portfolio over the two decades, I had made many mistakes and lost quite some money in the process. But I have also grown wiser and this latest portfolio is a collection of the wisdom I gathered over all those years.

I am happy with the composition of my current equity portfolio – particularly the Top 20 which covers the companies in the table above and more.

I don’t think I need to make any major changes to it unless an unplanned situation occurs or a great new dividend contributor comes along.

I hope I can continue to get 4 to 5% dividend yield and grow the size of my portfolio year after year, If I can do that for another ten years, i would be able to retire before the government statutory retirement age and don’t need to wait until 65 years old when I can get a monthly CPF disbursement.

This will be my last post for the mid year review 2022. I hope you have found it useful for you. Let me know if you have any questions or comments.

In a few months time, I will come back with the year end review.

Meanwhile, take care and stay safe.

Regards,

Warriortan

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