Skip to main content

Dividends Q1 2018

Being the browser equivalent of the Internet Explorer (sorry Bill),  I have only started reading the Tree of Prosperity blog by Chris. I highly encourage it for those who have not yet read his work. Very entertaining and, of course, insightful.

Chris recently got a JD from SMU (post-retirement) at a not-paltry cost of S$70,000. Not something I would do when I attain FI - hits much too close to what I am currently doing.  But see that's the fucking beauty of FI. You got all the time in the world to do whatever shit you fancy.

Chances are, plans will change, goals will shift, interests will wane, and new hobbies will arise.  Fluidity and flexibility is the essence of FI. Which is my standard reply to those who constantly ask "what are you going to do after retirement?" Yes, because finding something to do purely out of your own volition is the worst thing that could happen. Really.

Surprisingly, it seems difficult for the average Singaporean to fathom an existence that does not involve waking up begrudgingly in the morning and spending the good part of the day at a place which merely cultivates ennui and fabricates stress.

Time to take stock of my FI progress. 2018 has started off, erm shall I say, slow.

Firstly, the shares I hold in the company i work (which shall not be named) are finally eligible for sale. There is a standard escrow period upon issuance of these shares as part of a long term bonus compensation package. Long story short, the stock price plummeted 40% over the last few months. Just when I was about to cash in. Needless to say, I did not cash out and am still holding on to these shares. Fundamentally, the company is sound and EBITA is growing consistently. But the whims of Madam Market cannot be tamed.

Second, I made two large purchases into Singtel. The first was propelled by the greed for the special dividend due to the divestment of Netlink Trust. The second was due to the recent correction in its share price. In hindsight, those funds may have been better deployed elsewhere. Singtel's yield is good but its not FI-good.  And the share price looks like it would languish in the 3.3-3.4 zone for the foreseeable future.

Overall, the total dividends received for Q1 is $6,220.64, which is an underwhelming 12.4% of the annual target I had set for myself this year (50k in passive).

Main Contributors for Q1

SINGTEL 1,960
AIMS AMP 2,122.2
STARHILL 234
CACHE LOG 217.19
(Company which shall not be named) 1,687.25

TOTAL: 6,220.64

Of course, I take heart in that my dividend income is expected to be lumpy due to my concentrated investments in Frasers L&I and Ascendas Htrust - both of which issue dividends only half-yearly.

I recently cashed out of an AIA investment-linked life policy (which the stupid 25-year-old me bought); and I also worked full weekends this month for additional income. 

Hopefully, by April, my warchest will allow me to launch another vicious assault on Madam Market.

Onward to victory my FI brethren. 




Comments

Popular posts from this blog

As a Dividend Investor - I am having fun staying poor

Recently, there was a self-styled "master" who went around dissing dividend investing, saying things like REITS will chibaboom (his words not mine). Ironically, the master also invested into "growth stocks" like BABA and notably SE before its recent implosion.  Masterstrokes indeed. Dividend/income investors have borne the brunt of "have fun staying poor" taunts since the dawn of time.  Previously from the crypto bros and then from the growth investors. This is nothing new.  Every growth investor likes to talk about Tesla. But where are the ARK ETF investors? Where are the NIO bulls? Where are the BABA fanatics? Even a broken clock is right twice a day.   Good luck to those who retired on a portfolio of "growth stocks", hoping to spend 4% annually on an expected annualized portfolio growth rate of 10%.  Without dividends, one would have no choice but to liquidate part of the portfolio for meeting expenditures.  The damage done might never be reco...

The FI Checklist

You are on the verge.  So close your ears are tingling with anticipation.  Your fingertips rattle across the keyboard. Your lips purse into a wry smile. You can barely contain the pent-up ecstasy as the words appear on your computer screen: "... I would like to resign my position with effect from.... " WAIT A MINUTE.  I know you have literally waited a decade to type this letter.  But hold your horses first.  Have you done the FI checklist? The FI Checklist 1.  Have you set aside a cash buffer for income tax payments, which will persist for at least one more year in your unemployed life?   Since you would no longer have an active income, it is pertinent that you have set aside sufficient cash reserves to meet your tax obligations. If your passive income level is high enough to cover your expenses plus taxes, good on you. If not, prudence dictates that you ring fence some money for Singapore's most powerful debt collector. ...

Is it finally the end of the tunnel for REITs

General Mood Market is expecting interest rates to hold after US CPI data came out on 14 November and pointed to softening prices across the board. Oil has also retreated nearly 20% since its recent peak in Sep 2023.  Are we finally reaching the end of the tunnel for battered REIT assets?  My gut tells me that we are at early stages of recovery although we may possibly still see a couple more rate hikes in 2024.  Nonetheless, barring further escalation of global military conflicts and an unmitigated collapse of the Chinese housing market, both of which seem unlikely but can never be completely ruled out, we may start to see a gradual recovery in DPU for REITs (as rental reversions go up but interest expenses stay constant or go down).    What I did in 2023 (Not to be construed as recommendations or investment advice.) Throughout 2023, I have continued to load up on REITs which (i feel) have:      i. Good sponsors (Capland, Frasers, Maple family) ...