With The Hour Glass gone XD last Friday, that’s the end of dividend collection for this year. A total of $22.6k is collected this year, about 8% lower than last year’s dividend. This can be partly attributed to the timing in which I adjusted my portfolio.
The mistake for this year is the selling of UMS. I was thinking that its price action would be similar to Micro-Mechanics and AEM, but I was wrong as it stays resilient and the company increased their quarterly dividend for the past two quarters. Will continue to monitor and I might add it back in future.
The lure of the high dividend yield
It’s hard to ignore the yield provided by Daiwa House Logistics Trust and United Hampshire REIT offered at the current price. The first at 9% and the second at 14%.
Too good to be true?
Maybe, but based on the latest results, their current fundamentals look alright and it does seem that near term, they should be able to sustain their dividend. Keeping my exposure small as I continue to learn about them.
Nikko Asia Ex-Japan Reit was my latest addition. As mentioned in this post, I only bought this REIT ETF over the others because it is the only one that I can invest with CPF. I might continue to add more of this in the coming months.
As seen in the above chart, REITs and banks continue to be the main contributors of the dividend. However, in terms of portfolio allocation, REITs take up about 30%, while OCBC and UOB take up about 15%. The other income counters are HRnetGroup, Micro-Mechanics, Sheng Siong, The Hour Glass and Venture, and they take up another 15% of the portfolio.
A portion of my my growth counters also declare dividend. Interestingly, over the past 4 years they have either sustained or increased their dividend.
Trend and 2024 projected dividend
As mentioned earlier, dividend for the year is lower than last year’s by 8%. It was still on par in the last quarter. The main reason for the drop can be attributed to my reduction in position in Micro-Mechanics and their reduced final dividend. That resulted in $1.3k less than previous year.
Also, it is partly affected by the timing of my portfolio adjustment. The timing in which a counter declare their dividend is not a consideration in my buying/selling decision, so at times I would miss the dividend payout.
This breaks the trend of increasing dividend! While it does not look as nice now, it really does not matter because this is only temporary. Based on current projection, dividend should hit about $27k next year.
In another word, on average I have increased my dividend by about 10% annually over the past 4 years! That definitely feels good. Hmm, just think how does it feel to get a 10% increment in pay yearly for 4 years!
Referral
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Trust Bank (code: 1X9DDP1V, additional $10 Fairprice voucher)
Keppel Electric
FSMOne (code: P0003528)
StocksCafe (code: TFI)
Moomoo
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