All the companies in my equity portfolio have released their latest results and declared their dividends.
As of today, the dividends that I would receive amount to 2.0%. Proportionally, this is greater than 25% of my target yield of 4.5%. This is because it includes some dividends declared but only ex-div in Q2.
Nonetheless, I am happy with this and very glad that the banks in particular have increased their dividend payout and fatten my wallet,
The table below shows the Top 10 Dividend Contributors. As you can see, they are mainly the Reits from the BIG-4 companies (Capitaland, Keppel, MapleTree and Frasers) or the local Banks.
This is not surprising as they are among my biggest equity holding too and are high dividend yield companies by nature
The only two Top 10 holding companies that are not in this list are Netlink Trust and Frasers Centrepoint Trust. I am sure they will feature in this same table by the end of Q2.
DBS is missing from the list too – it is a company that I plan to accumulate if its share price weakens further. I find DBS expensive currently.
For comparison, I have included the same Top-10 list from 2021.
While some of the big-4 Reits are in the list but the banks are no where in sight.
Instead, you see other Reits like OUE Commercial, Suntec Reit, a HK company (Nine Dragon Paper) and a few other consumer type companies – Frasers Property, Thai Bev, Q&M Dental.
I have fully divested some of these companies already – like OUE commercial, Suntec Reit, Thai Bev …
So, just from this comparison, you can see the significant shift in my portfolio towards the bigger Reits and our local Banks.
This is my deliberate attempt to upgrade the quality of my portfolio.
I feel more comfortable holding the companies in my Top-10 list now compared to those in 2021, with the exception of Prime US Reit. I am a bit concerned about Prime but I hope it is just the market being overly harsh on it. I am keeping my finger crossed that it will not turn out to be an “Eagle Hospitality” and burn me for the second time.
As I move closer to retirement, I also want some certainty in the passive income I get.
Will this change turn out to be more rewarding in the longer time? Only time will tell.
Having said that, I appreciate that I can sleep better now and that’s valuable to me.
Hope you find this post useful for your own reference.
Have a great week ahead.