Friday, November 20, 2020

Dividends Update (Year 2020) - $26K


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!

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