Aug 23, 2012

Dividends for 2Q12

I am getting dividends for the last quarter (2Q12) in this and next month soon. The total dividends I will receive is:

S$(140 + 108 + 193) / quarter
=  S$441 / 3 months
=  S$147/mth

I am researching for new candidates to include in my dividend portfolio and shall update them in my blog later on.

Historical Investment Records

FSL (Shipping Trust) - 10000 shares (10 Lots)
Reason: Divested due to dividend cuts and suspension.

PST (Shipping Trust) - 10000 shares (10 Lots)
Reason: Delisted.

Divested FSL shares

I have been watching in dismay it has cut its dividends next to almost nothing two quarters ago, till in its latest financial announcement in July 2012 about the restriction ("Relaxation Period") on it to pay out any distribution from this quarter until 30 June 2013. I believe as an ordinary unitholder and income investor, such development is very unfortunate and disappointing. Hence, I made a painful decision - sold off my 10 Lots of FSL shares on 22 August 2012.

Lesson learnt here: Trusts such as Shipping Trusts or Business Trusts are, unlike Reits, can cut or suspend their dividends/distribution to nothing anytime, so now I find them very risky to invest in, although they may display attractive/high dividend yield from time to time. I decide I will not touch them from now on.

Fortunately (or unfortunately), partial of the overall dividends I received over the years from my simple diversified portfolio managed to offset the capital loss from the sale of FSL shares.  I will re-deploy the remaining funds from it for other investing opportunities.

Dividends for 1Q12

There was not much changes in my portfolio since 4Q11.

Below was the average monthly dividend achievement record for 1Q12:

S$(12.60 + 151.20 + 107 + 193) / quarter
=  S$463.80 / 3 months
=  S$154.60/mth

Dividends for 4Q11

The drastically reduction in dividends received was because PST had been delisted and no longer contribute to my Dividend Portfolio. Another factor for its drop was because FSL substantially lowered its payout due to worsen business condition.

Below was the average monthly dividend achievement record for 4Q11:

S$(12.55 + 145.60 + 101 + 193) / quarter
=  S$452.15 / 3 months
=  S$150.70/mth

Dividends for 3Q11

I had not kept up the update in my blog I have promised to myself. Nevertheless, I try to pick up where I have missed out during the period.

Below was the average monthly dividend achievement record for 3Q11:

S$(94.10 + 122.50 + 140 + 100 + 192) / quarter
=  S$648.60 / 3 months
=  S$216.20/mth

Feb 9, 2012

Fresh And New Investment Year

Hi, I'm back.

My last blogging was in August 2011 and did not update for a pretty while. This is because I have landed on a new job and it requires my full attention at that period of time. But now things are settling down, so I have some personal time to continue with my blogging on my investment journey.

It has been a dramatic change since my last blogging - 
  1. PST is delisted
  2. FSL has a huge cut in DPU
  3. AimsAmpReit has undergone a share consolidation
These unexpected events (at least for me) will have great impact on my goal and dream to arrive at a sustainable and consistent income stream to finally achieve my financial freedom.

This put me into thinking recently, while watching events unfolding themselves, what have I done correctly or incorrectly? What can be done to ensure a more predictable Average Monthly Dividend Achievement (AMDA) for myself?  I am going back to the basic to find out the answer.

Take for an example, I happen to come across one blogger, Musicwhiz, who has had divested his holding in as early as 3rd August 2010 at an average price of S$0.41125. His reason for divesting was purely based on his fundamental analysis of the company that it has unsustainable business model. Fast forward to today, on hind sight, he is right about it! This leads me to re-think my investment methodology  and realize I should not chase for risky high-dividend yield, because like everything else, there is a price tag for what it is.

With this in mind, I will want to ensure my future purchase of any stock to meet the following criteria:

  1. Reasonable fundamental analysis using value investing method
  2. Continue to buy only companies that are paying consistent and sustainable dividends
  3. Avoid super high-yield candidates, medium ones that are giving 3 ~ 5% yield are acceptable
The above criteria is not still not finalized or crystallized yet because I still have other ideas in mind which I shall share with you at a later part.

At the moment, I am sorting the records I have been missing out during the period from my last update till now. I will publish them once it has been done.

Last but not least, if you happen to drop by this blog, I want to wish you great fortune and great health in this new fresh year!

Sign off with best regards.