Friday, March 11, 2016

[SGX Portfolio] Feb 2016 Update

As mentioned previously, this will be my attempt at having a monthly update of my SGX portfolio. I have also updated that page to include the historical growth of my portfolio. I find it personally encouraging to know I've come so far from where I started. Hopefully other people may be inspired and also decided to embark on their financial journey.
"The journey of a million miles begins with a single step"
Anyway, here are the current stats of the portfolio as of end February 2016.



Total Cost    $27,175.90     
Unrealized Gains-$3,208.90
Accumulated Dividends $1063.77
Realized Gains$628.89

*Total Cost is initial purchase cost of the current portfolio
*Unrealized Gains represents the unrealized capital gains on securities still held in the portfolio
*Accumulated Dividends is the total of all dividends collected thus far

*Realized Gains will only take into account the final net capital gain or loss after including transaction costs to close a long position on a security. 

I have not bought anything in the month of February, although I am watching a few names which look very attractive to me in the long run. In fact, to be honest, many names look pretty attractive for the long run investor. However, I feel that if that if this recent market recovery is just a relief rally within a bear market, a depressed market would lead to these beaten down names becoming even more attractive.

I have collected a tidy sum of dividends this month of $72.14. What is interesting to note is that this amount is 38% more y-o-y compared to Feb 2015's dividends. Is my portfolio income growing? I sure hope so!

The month of March looks like that there would be plenty of dividends coming in as well. I am especially looking forward to the Saizen special dividend, however I am more inclined to register the entire transaction (including selling off the residual shares) as realized capital gains instead of dividends. If I don't do this, it would quite artificially surge my "expected dividends", which for this special dividend, can no longer be expected in the future.

Annual income from dividends is now expected to be about $1664 for a full year, (taking into account Keppel's cut) but of course I collected some and miss out others by not owning them the entire period. That brings the expected monthly income to $138.74 and daily income to be $4.56.

Based on the dividends I am expected to collect, my portfolio dividend yield on cost is estimated to be about 6.13%. I have taken the lower bound estimate for most of my counters, so it is quite possible to have surprises to the upside. My portfolio yield is rather stable around 6% now, since new additions are generally on the upper end based on their individual yield history.

In the coming months I expect the Singapore stock market to continue to perform poorly. My current strategy is to just brace myself and incrementally add on oversold opportunities. If my thesis is right, there are going to be plenty more opportunities in the coming months. I remain heavily in cash.

I plan to accumulate the blue chips as we continue to sink, while I leave the very juicy and highly attractive REITs to be accumulated when the market is recovering (and rights issues which require additional capital are already over). I would aim for quality and stability on the way down, but on the way back up I should be spraying all over and going for those which I think would have rather handsome upside opportunities.

What drives me with the sharing of my SGX portfolio is to show people an example of how one can work towards their dreams - with discipline and hard work.

Rome wasn't built in one day. Everybody has to start somewhere.

Where are you heading?

2 comments:

  1. Very impressive to have such a big portfolio in terms of no of stocks. I hope you are using SCB or similar platform which has no min comms else your expense ratio to cost will be really high.

    Looks like you are trying to achieve diversification and passive income at the same time. I could imagine the no of annual reports you are getting annually, hope you got time to read them.

    Cheers and I fully agreed with you that Rome wasnt built in a day. Most importantly, you started this journey.

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  2. Looks like we are back to warchest accumulation period now that the market has rebounded.

    Just curious, do you sell to rebalance your warchest portion?

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