Thursday, December 31, 2015

Portfolio Update - 31 December 2015

December has been a relatively quiet month in equity market. US Fed finally made the first step to hike the interest rate to 0.25%, officially ending the long era of cheap money. The hike was not excessive and the market took it as a confirmation of US economics recovery. Global stock market rallied the next day after the Fed's announcement.

STI rose moderately in quiet trading sessions, as there lacks positive news from the corporate world. At 5:10pm  today, STI stood at 2,882.73, up 26.79 points, or 0.94% from last month. My portfolio moved slightly ahead of the index, its value rose 1.17% this month. HTL and Ascendas H-Trust were among the best performers this month, after news of acquisition surfaced.

This month, I bought shares from KSH, Tai Sin and Lee Metal. I also received Mapletree Ind Tr and Cambridge Ind Tr shares through scrip dividend scheme. Net cash injected amounts to S$15,138.00. I also received some bonus shares from KSH.

On the dividend side, total dividend this month from shares and UT amounts to S$11,335.00. Below are the top 30 holdings as at 5:10pm on 30 December.

1.       ComfortDelGro
2.       SPH
3.       OCBC Bank
4.       DBS
5.       Ausnet Services
6.       Kep Inf Tr fKa CIT
7.       ST Engineering
8.       Metro
9.       SGX
10.   Sembcorp Ind
11.   Starhub
12.   Frasers Comm Tr
13.   CapitaLand
14.   AIMSAMP Cap Reit
15.   HTL Int
16.   SATS
17.   OUE
18.   Keppel Corp
19.   Tai Sin Electric
20.   Nam Lee Metal
21.   CapitaComm Tr
22.   Nikko AM STI ETF 100
23.   KSH
24.   Ascendas Reit
25.   Stamford Land
26.   SIA
27.   Ascendas-h Trust
28.   United Engineers
29.   Saizen Reit
30.   Global Inv

There are 5 new entries (compared with last month) in the bottom half of the table. Share prices HTL and Ascendas-h Trust surged after news of acquisition was announced. They will disappear from the list in near future. KSH and Tai Sin entered the list due to new purchase and bonus share issue, while SIA share price rose over a dollar this month.

As a whole, 2015 has not been a good year for equity investment. STI started well this year, and was above 3,400 in April. Then came a slew of bad news and now it stood at 2,882.73, down 482 points, or 14.34% from December last year.

My share portfolio took a beating this year as well. Although there was a net cash injection of S$170,000 into the portfolio, its value only increased by S$33,644. Even if I take the dividend received into consideration, there is still a net lost of about 4%. The only consolation is, the lost is smaller than the index. This shows again one advantage of dividend investment. In time of market volatility, dividend income can be used to reinvest into the market and hence cushioned the effect of volatility. UT portfolio value dropped about 10% for the year, or 4% when dividend income is taken into consideration.

The dividend income from both shares and UT investment was higher this year, as I continued to invest in dividend yielding stocks, UT and retail bonds. Total dividend received this year was S$151,364.00, which was above the target set a year ago. This was with the help of some special dividend following merger of City Springs and Keppel Inf Tr, and the return of  capital from MIIF after the fund closure. In the coming year, some of the dividend yielding counters will disappear from my portfolio. So I will not raise the dividend target, but keep it at S$150,000.00 The chart below shows the monthly dividend.



May I take this opportunity to Wish everyone a healthy, peaceful and successful 2016.

16 comments:

Dividend Knight said...

Thanks for sharing ur portfolio.

Happy New Year! :)

B said...

Hi Sanye

That's a lot of cash injection there.

I am also looking at Tai Sin but doesn't find their share price very attractive at the moment. Do you find it differently and mind to share?

Sanye ◎ 三页 said...

Hi Dividend Knight,

Thank you for visiting. Happy new year to you too.

Sanye ◎ 三页 said...

Hi B,

Cash injection mostly happened in the 2nd half of the year. This is essentially the dividend earned plus some spare cash.

I looked at Tai Sin from dividend point. Its share price moved quite slow in the past. I nibbled a few times when it dropped. Didn't do a very detail analysis though.

Anonymous said...

Hi Sanye,
I noticed that you have both DBS and OCBC as top 30 holding but not UOB, care to share with us your though on this? Since interest have gone up will it be good time to buy more bank shares or infact not?

Regards,
Jason

Yaruzi said...

I like the dividend chart breakdown UT vs shares ... Nice and great work

Sanye ◎ 三页 said...

Hi Jason,

In my opinion, all three local banks are good stocks to hold. I chose OCBC because of the assets they hold, which I think its undervalued. Its share price was the lowest also among the three and was more affordable at the time of investing - before the last GFC.

I bought DBS during the GFC, and increase my holding during the right issue.

During the last GFC, I bought UOB as well at a price of 8.20 per share, but has since sold them for a good profit.

Sanye ◎ 三页 said...

Jason,

I think the banks stand to benefit for the interest rate hike in longer term. Their prices are pretty depressed. I will be increasing the DBS and OCBC holdings by participating in Scrip dividend scheme.


Sanye ◎ 三页 said...

Hi Yaruzi,

Thanks for the kind words. Happy new year!

yoland king said...

Hi Sanye,

Good portfolio. One quick qn: april and july are considered "low"months for the dividend investor. I see that you have compensated for this by other non-shares income.

How did you plan this? a master investor...

Sanye ◎ 三页 said...

Hi Yoland King,

Somewhere in January last year I invested in a UT that pays dividend quarterly in Jan, Apr, July and Oct. Together with other UT dividend, it was able to jack up dividend income in April and July, which was two "dry" months previously.

You changed your Nick from Low Paul to Yoland King? This new nickname sounds a bit... erm.... okay I shouldn't comment, sorry.

Happy new year.

yoland king said...

Hi Uncle Sanye,

Understand now. great plan to complement shares income with UT income.

Yes..nickname...my wife feels better to use nickname further from real name...

thanks once again!!!


Anonymous said...

Hi Sanye,
Noticed that you have also increase your position in Tai Sin, can share with us if this stock is good to hold for long terms.

I noted it has 1)positive operation cash flow in past 3 years, 2)dividend records also stable around pass 5-6% for pass few years 3)stock price around 0.30SGD to 0.40 SGD. 3)The vitals like PE:8.69, PB:0.91, DOE:37%, Beta=0.55 all looks reasonable.


However in your opinion is there anything we should stick in our mind/wary when investing in small/mid cap. I understand cable business have stable demand but now with property slowdown will it affect cable business as well?

Regards,
Jason

Sanye ◎ 三页 said...

Hi Jason,

You have answered a big part of the question yourself why this is a stock for long term investment.

When investing in small/mid cap stock, the sustainability of the business is always my biggest worry. As to Tai Sin, the track record shows that they have a sustainable business model. Cables are not only used in new property development. For existing building, cables have to be (or should be) replaced every 10-15 years to ensure safety. Cables are also used in all kind of infrastructure development. I think the slowdown in property market will not affect Tai Sin very much.

Another question when investing in small/mid cap stock sometimes is the liquidity of the stocks. Tai Sin share is not very liquid, ie. there are not many transactions. Since I am holding it for dividend income, this is less of a worry to me.

yeh said...

hi uncle
will you increase your holding of keppel corp and semb corp?

Sanye ◎ 三页 said...

Hi Yeh,

KepCorp and Semb Corp yes, if their prices drop further, but not Sembmarine, for their business is not diversified.

With the news that Brazilian state owned oil company filed for bankruptcy, I expect price KepCorp and Sembcorp will decline further. If you are thinking of investing in them, do it slowly.