Saturday, April 10, 2021
Wednesday, February 24, 2021
Sigh, in a sea of red, shall we concentrate on the dividends?
January 2021 gains were wiped out due to the market correction but Q1 (Jan - Mar 21) dividends reached an all time high of $10K.
Ever since joining the InvestingNote.com community, I've gotten a few inspirations but it's very easy to be distracted by the various views on investment strategy. Some think it's useless to invest in the Singapore stock market due to the phenomenal bull run of the US stock market, some think that the US market is over-valued and due for a crash. You basically got to form your own view and decide what's the best course of action for 2021.
Sunday, January 3, 2021
I also made the decision to purchase the S&P 500 index fund via Endowus with $40,000 of my CPF Ordinary Account (OA) funds in Sep 2020. It has since generated $2,859.92 (+7.15%) returns within a short time frame of 3 months, beating the 4% Special Account (SA) annual interest rate.
Add that to the dividend income of $25,917 generated by my stocks portfolio would bring the total passive income received to $42,529 for year 2020 (excluding capital appreciation of the stocks portfolio).
Not bad for doing nothing and earning money while sleeping, aye? It's like having a son earn money and him giving you all his paycheck as an allowance, haha. My goal is to earn $50,000 passive income annually because that's how much I think I will need to stop working and live a reasonably comfortable lifestyle.
Friday, November 20, 2020
With the final dividends announced by the various REITs in for 2020, I can finally tabulate the total dividends received for the year. I've received a total of almost $26K of dividends in 2020, five thousand more than 2019. This is why I invest in REITs, the amount of dividend income received is relatively constant even in a year hit hard by COVID-19.
Thanks to my strategy to invest mostly in Industrial REITs, the portfolio has been quite robust in churning out dividends. Think about it, even in times of turmoil, businesses still need space to manufacture goods, store logistics and house data centres. I plan to grow the amount of dividends received next year to $30K, which means I will need to add another $100K in value to the portfolio with an average dividend yield of 5%.
With 42 REITs listed in the Singapore stock exchange, I can't possibly invest in them all or spread my investment too thin for sub-par returns. I'm going to stick to the 4 horsemen of Ascendas REIT, Mapletree Industrial Trust, Mapletree Logistic Trust and Frasers Logistic & Commercial Trust. I'm really tempted to jump into the US stock market and maybe I will in 2021, because the opportunities of growth stocks there are too hard to ignore.
For now, FLCT has been identified as the lead horseman to help propel this portfolio to the million dollar mark within the next 5 years. I'm crossing my fingers for it to be listed as a constituent stock in the Straits Times Index at the December quarterly review. It's time for FLCT to shine!
Monday, October 26, 2020
- Strong sponsor & pipeline
- Industrial REITs are less prone to economic downturn compared to retail/hospitality
- Giant REIT (component of STI) with economies of scale
- Multinational diversification (SG, MY, CN, VN, AU, UK)
- Appreciating share price and DPU
- Dividend yield is less than 5%
- Majority leasehold properties
Saturday, October 10, 2020
Transactions in Sep 2020:
- Accumulated 5,000 shares of Ascendas REIT at S$3.20
- Accumulated 14,000 shares of Frasers L&C Trust at S$1.35
- Accumulated 15,000 shares of Prime US REIT at US$0.815
- Portfolio Market Value: S$542,652
Thursday, October 8, 2020
What was your strategy during the big market drop in Mar 2020? Did you load up more shares or did you cut losses?
I wasn't pleased with how I reacted but then again hindsight is 20/20. I might have been pleased with myself if it was a prolonged bear market. This is why you should have a strategy on what to do when the market tanks, not just in a bull market, so you can execute your plans swiftly and calmly when the time comes.
I was shocked and paralysed when my portfolio not only lost its gains for the past 5 years, it also experienced a 50% loss in capital. Imagine waking up to a chart like the above! I knew I wasn't going to sell and incur all the losses, but I didn't want to buy either because I was unsure on how the market might react further.
What I should have done was to buy more positions of my two core portfolio stocks - Ascendas REIT and Frasers Logistics & Commercial Trust. At some point FLCT dropped as low as $0.665, if I had bought some I would have been sitting on more than 100% gains on those shares now. I managed to regain some composure in Apr 2020 and starting stocking up on Keppel Pacfic Oak US REIT and Prime REIT, but absolutely missed the opportunity to expand my holdings in A-REIT and FLCT.
I have been accumulating A-REIT and FLCT for years, they are good stocks, yet I couldn't bring myself to buy more during the crash in March 2020. Next time this happens again, I bet you know what I'll do - take a cold shower and open my war chest.
“Be Fearful When Others Are Greedy and Greedy When Others Are Fearful” ― Warren Buffett.