Cory Diary : Dividend Investing is Boring. Easy ?

Capitaland Mall Trust has been with Cory Portfolio for about 6 years ago.  It has been one of the key starter for Cory to learn about dividend investing. The yield is not so great, not bad, stable and well backed. This gives confidence to Cory to mend his ways in the early years of aimless speculative investing.

Below historical data of Cory's CMT Table.


As you can see, starts on Year 2014, took some breaks on Year 2015 and 2016 before it becomes Core Position in Portfolio in Year 2017, 2018 and 2019. Years where Cory P/L is positive is also years Cory holds for long time within the year.

Even on a not so great yield, Cory collected S$33K from it slowly. How much capital deployed ? In/Out trading on some and holding on mains maybe around $50K-$60K. Looks like quite profitable so far. Maybe is not that surprising as dividends act as a good buffer from market fluctuation to trade. To get to know more about CMT here's the chain articles on CMT.

Yes, Dividend investing can be boring. Maybe Year 2019 is different. Well, it is usually boring but often profitable from Cory experiences so far till it is not .... 😨. Investing maybe is that easy. I hope ! 


Cory
2019-12-08

Cory Diary : Sector View of Cory Portfolio

Sector tracker comparison for 2 month periods


Cory Top 7 Investments

1. Ascendas Reit

2. DBS

3. STI ETF

4. Frasers Bond

5. CapitaLand Mall Trust ( CMT )

6. VICOM

7. SPH Reit

Previous Investment as link.

Note: Netlink BNB Tr is classified under Telco

Main Key Change is the expansion move in Banking Segment which are relatively more attractive to position for Year 2020. This provide a more balance portfolio that is strong enough to match Reits exposure which has enjoyed significant run up this year. Chances are we are't going to see same scale in jump for Year 2020.

Cory
2019-1206

Cory Diary : Performance Nov'19

The month ended with one of the most actions seen on Reits in Cory Portfolio this year.

1. Ascendas Reit Rights Issue
2. FCOT Halts
3. Accordia Golf Tr Potential buyer
4. SPH Reit Private Placements
5. MINT acquisitions of DCs
6. Aims Apac Reit books building exercise


Performance Tracker

STI Index continues to reel from Trade War falls out which means well for yield assets. Interestingly, DJIA hits new 28K records with strong jobs report despite on-going  trade tariffs. Cory Portfolio has to work harder to keep up with the score with increasing exposure to banking.

Cory

2019-1201

Cory Diary : Mind Boggling Trades

Following article is just a re-collection as I struggle through my thoughts. Not an encouragement of what you should do or not. There is a lot of dynamics and risks on my actions and likely not suitable for anyone who attempt to follow as always.

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Has been quite some time since I last posted about my trading activities. Maybe is good time to re-collect on it on those that I can remember and correctly remembered. Since the last scare on stable Reits, I have decided to take profit on a number of my higher profit counters. 

However, there's still a need to continue my dividend "Story line". This few months saw a number of Reits actions. Very happening months and trading costs have been escalating which I have to watch closely as expense ratio can climb very fast with lowering profits when the market turns while I am searching for the Nirvana Portfolio to suit myself.

Maple Ind Tr

Not bad for a stock which I started investing only last year. In Year 2018, after dividends is only kopi money. Hardly cover my transaction costs. However the logic is clear for me and which I continue to add even more after. Year 2019 profits kind of exploded. Is good to have a happy closure on this counter. 

Basically I cleared out this counter. Good 5 digits profits for Year 2019. Rationale is that it has hit below 5% yield. I do like this counter though as I am expecting DPU growth for some period of time.What this mean is I am no longer have any Maple counters ( sigh ).... . Not sure is the best thing to do but it has been decided and so a counter less. 

Ascendas Reit

To cut the the long story short, sold all my Rights Shares however bought the Mother-Shares later. This push my holding relatively high. I have yet completely recovered to my previous  max profits on this counter net net. However, at roughly 5.5% yield I am happy to wait while collecting dividends.

This is the largest Reit in town. I have been harping how attractive it is for myself. And I am willing to go along with it growth along Singapore Story Line with the added twist on recent US acquisitions. Certainly I put a lot of faith in the management. I could be wrong and pay for it.

Accordia Golf Trust

AGT is something I owned few years back/ Not so profitable exercise. In fact net net a slight loss if my memory serves me correct. I hate the pendulum swing in the stock prices. The DPU swings too with the directional of the "weather" or weather ...

Back on this counter due to recent news on potential sales of all it's golf courses. The reason I go in is 2 folds. First the NAV and possible premium. Apparently, the market did not drives it high enough so I decided to do a calculated risk to buy some despite the premium. Of-course this is speculation move and can becomes long term holding which isn't that bad with roughly 7% yield @0.675. Yes, high can go higher ... . The fall can be great too sadly.

Fact check on myself. Without AK affirmation, I wouldn't have go in. After keying in the lots acquired on how much dividends I could get, Year 2020 dividends moved up nicely. So I thought maybe I should get 10 lots more but the price has ran away in the seconds that I was deliberating. I always remind myself that when one buy on speculation please treat the trade as such. I did not on this one.

Netlink BNB Trust

Decided to increase my holding since I am not going to clear them all. This to me is a defensive play while yield is average. There's talk about sustainability of the distribution but I am not sure is a concern considering the gearing is low. Anyway the size is risk adjusted and does help to spread out my dividend play. 5G risk is unknown 😱. Something I have to stomach with. However, I got a good enough 5 digits buffers on this year alone. 

The history on this one with me is boring. There aren't much profits on this one and for a period of time looking at how shipping trust or harbor trust go, this aren't one of my pillow that I can sleep soundly. I even lose money on this last year after dividends. Other than being similar to a business trust their commonality ends.

The only calculation I did is yield and that they are here to over stays for years to come. There has been many discussion on their viability. So we walk with our eyes open so blame no one. Just have to stay nimble.

FCOT

Took profits about 40% of it few weeks back. Is another nice 5 digits from this year alone in total considering I only start investing in them in Year 2018 and have the lots doubled in Year 2019. Why the confidence is like the enlightenment I had on it being treated as bond-like in nature. This easily explain why I make my moves on a number of other Reit counters.

Just yesterday there is this merger news. Frankly not sure is good or bad timing for me. It has maintained 2.4 cents for longest time I can remember quarterly. So they know how to make Shareholders happy. Let see what they could come out with. Hopefully I will have a better deal from FLT. The suspend is interesting.

Ascendas-h Trust

This has been with me for past few years. Is small but nimble. When I have it I know what I am going into. I have this tract rather closely quarterly and was quite interested in what they have been doing strategically. Unlike others, I have time to tripled my allocation over the years.

Together with the others, sold about 30% off this counter. This is the largest profit of all the reits I have of this year. You can say is re-balance of the profits 😌. I have nothing against Ascott Reit other than offering me a lower yield than AHT can but it is going to be in a stronger entity. Look forward to my Ascott Shares.

 DBS

Continue to increase my holding on this at opportune time. Right now is slightly above 8% of my portfolio holding. So, think I am good on this one.  CEO performs much better than the others. He knows what is Shareholder values I feel or my feel. The only risk is the digital banking licenses which I have not much clue on the impact. Gut feel is DBS should weather it through safely.

This counter also acts as a counter-balance on the Reits which are interest rates sensitive so that my portfolio do not swing like a pendulum. That's not saying both won't go lower on a single day though. Having dividend like nature and longevity in the business gives me the confidence.

STI ETF

Sold some off when it hits $3.3 early Nov. This is more of re-balance and improving yield moves as STI seems to hit a new peak. (Link). Should have sold more but hindsight is always 20/20. Future purchase will be to nominee account for long term and lower trading cost structure as a personal reminder. If one has followed my blog, STI has not been performing well for past decade. You can try to put your start point before GFC or after it's recovery and the end point today and see whether this is align to my thoughts. I am in it for long term diversification as a portion in my portfolio. With the yield at 3.x%, I would prefer to time the market on this one.

SPH Reit & CMT

Increased some SPH Reit shares as I view this is a better yield performer than CMT. My view is both their dividends and DPU will be quite defensive. Interestingly, I do bought some more CMT this month when it comes back up in yield. Maybe I should have only one of them in the future. There is always this balance between defensive and better yield fluctuating within my mind. Their combine holdings probably square off with AR in exposure.

Frasers 3.65% Bond

With the cash raised, I took some to buy some bonds. Think roughly 10% max holding now that I would go. Not sure this is the right move come to think of it today. I will have to give further thought on this size. This aren't the problem now as I have cash available for opportunity and Frasers family seems running well.

Aims Apac Reit

Average down at 1.373 and then sold half when it rebounded. This is the current size I am happy to hold and sleep well. One of the "alpha" in the Reit team as it provides 7% yield at today price I think. In term of profits, this year is kopi money. I am happy to keep the remaining as long term holding. This does help my Year 2020 plan.

Overall

After all above, there is still good amount of cash in net sales which will be for opportunity. My only concern is my portfolio has not been as stable as before. In the first 3 quarters of the year. almost always one counter will counteract the other falls quite amazingly. Not so now. Maybe the market has turned less bullish or maybe the counters are not in perfect fit to support each other which means will see lumpiness in P/L. P/L and Div are on-track. (updated for privacy 12/21) 

Cory

2019-1129

Cory Diary : Be very careful - listening

Often in leadership training, Listening is a Core Skill. The ability and willingness to listen can give us a very different picture on our conclusion and values. That's why communication and empathy is important. Your willingness to bring down your judgement and let the lava flows.

During the course of my work blockages happen therefore sometimes I do have disagreements with colleagues.  However, I have a practice of keep thinking about the problem and why people have different views from our "100% Right" ours. This are intelligent people. We are suppose to think logically for the same problem which often not ! Overnight our brain will sub-consciously think about it , and the picture formed with the Eureka moment.

We can extend this ideas to recent event such as HK democracy movements. Often we will see the deepening violence by Rioters. Many Singaporean will conclude is no reason for violence. Frankly, my thoughts will be HK people aren't less stupid than us. Like us, their economy is on toe to toe competing with us. So why the 6 months of violence and protests ? This question will ring in my head as I try to form the rationale.

Many will say this are spoil brats kids. Hold on, didn't we have millions marches on their side ? How about the landslide victory by Pro-democracy candidates in Hong Kong's district council elections ? This doesn't make a lot of sense. We know Violence is bad. But what Media tells us do not match with the "Results". And that's the point with brain washing on the Media inclinations. That's the power of Media. It can Brainwashed even intelligent humans into tamed animals. See what happen if done in a national scale without the other opposing media except a single authoritative one. We can have a whole generation breed align to state doctrine sub-consciously even on very smart people. In rare situations, a few will takes the Red Pills.

Same thing this can applies to stock market. When you have analysts, Guru in forums or even bloggers pushing for specific stock recommendation or ideas. The interesting thing about this is that they do not need to lie. They don't have to. They just have to present what they like you to see and keep quiet on opposing arguments to "brainwash" you.

And this is what I like about American democracy. We have CNN and Fox News out there competing each other on opposing stunts to brainwash the public on Trump/Republicans and Democrats. A lot of noise certainly but it can be worst if is one-sided Blue Pills.



Cory

2019-1125

Cory Diary : Wake-up Call - Performance Mid-Nov'19

When China mentioned that they are close to a trade deal, this send a shocker to the market used to flip-flop sending investors to good safe haven equities of good dividend returns. A strong recipe for good quality REITs locally. The good news send a little cooling of sizable reduction in share prices not seen for some period of time on surprisingly strong quality counters. Is market finally feels is real ?

This is a wake-up call to Cory who just got his portfolio ready for 2020 and now has to do another re-balance. Took some rather drastic and decisive actions to re-balance the portfolio by profit level as the previous assumption were always defensive is good except how to is a big question. The learning is we see FCT, CMT, Ascendas Reit, MCT, MINT etc driven down much lower than other REITs of lower quality is humbling. The rationale is interesting but something to explore with on other time.

In another front, if we could remember, Ascendas Reit has quite a large discount in it's Rights. After Ex-rights and Ex-dividend, price was driven much lower in subsequent days. At 5.7% yield, this is attractive, and Cory took the opportunity to expand more at $2.88. Yes, Cory still loves good quality Reits especially at cheaper price.

Today, DJIA broke 28,004 and STI Index is at higher 3228 level. Cory XIRR 22.6% YTD. Profit Yield ( Profits / [Total Portfolio + Investment Cash] ) at 18%. Just another reminder that strategy has to be nimble to accept change to counter the unexpected and assumption. 

(updated for privacy) - Cory aren't complaining as is better to sleep well with some profit buffers. Yes, Cory has a bazooka right now. A good problem to have for Year 2020.

Cory
2019-1116

Cory Diary : Ascendas Reit gets even better with Rights !

Ascendas Reit


This Reit comes into Cory portfolio pretty late. In the initial positions in 2017 there were quite a number of trading activities. Make some kopi money.  Investment only get significant in 2018 which interestingly registered a net loss position by year end. Today, Ascendas Reit is Cory largest position after STI ETF.

So one may ask why so late in the game on this one. The key reason is Ascendas is expensive relative to itself. The chart is ever growing so stock price continues to climb year after year. So Cory keep postponing and finally one day strike his head that if one day it does really get cheap enough, he may not want to buy any ! So that's the 2nd Enlightenment !

Strong Reit is sort after because they perform consistently or should I say grow continuously in DPU. What this mean is for every share invested, the dividend returns are more each year. To top it up, the capital gain as well. So if one try to wait, this may never comes. We can miss this gem completely but Cory prefers to be late than never. This year for some period Ascendas Reit is Cory top performer registering strong returns before being overtaken by little brother Ascendas-h Tr, and Mapletree Ind Tr later.

When the News is out on the large acquisition, Cory is bewildered. Most people would automatically expect stock price to be lowered on the next trading session but not Cory when he regains his composure and who then secretly wish for price gains (link). Indeed, it does and Cory managed to sell some lots at $3.19. The many reasons Cory has provided in the link. However, the price come down later to $3.12 which is still respectable considering the huge Rights discount. The reason for the sale is more on re-balance rationale and taking some profit off the table.

Will the price comes back up is anybody guess. However in Cory heart l, it easily could. And considering the size and yields, it gets more attractive than before. If the price fall significant enough, getting more lots would be very tempting for a stake in the biggest Reit in town. Cory almost want to say Ah Gong throw money to investor to take. LOL

There is one saying. If you visit China but did not climb the Great Wall, you aren't a MAN (“不到长城非好汉”). Cory like to add, if you do not have Ascendas Reit in your portfolio, you aren't a dividend player either. (joking ... don't kill me .. is late). And as usual disclaimers .... for errors and not a stock pick recommendation. Is just a diary of what Cory is thinking and he could be very very wrong.


Cory
20191106

Cory Diary : Equity Allocation Nov'19 Report

Just about a week ago Cory documented an early exam report card thinking the score will go down this week but he didn't. If you miss his Diary on Oct Performance. Must visit.  ( link ). Is good to be wrong for this case isn't it ? Again a good problem to have.

And then he wrote another piece of work on How to make money ..... (No Scam okay ... here's the link ). This piece of Diary is Classic .... as it summaries Cory progression .... or regression .... . which I find is important to understand the essence though kiasu and kiasi methods can varies.

To cut it short here's the Final Equity Allocation.

For Year 2019,

XIRR YTD      : 24.4%
XIRR Dec'19 : 19.7%

(updated for privacy) . Cory maybe right to say portfolio will be lowered just that is not this week but probably next. 

First of all is the announcement of Ascendas Reit Rights Issue. In Cory opinion, the discount is quite large in order to raise enough sum. The fortunate thing is for this time is not along private placement lines that they are quite familiar with as this will put a dent on shareholders value. The second thing the manager did right is to allow the rights to be sold. This mitigate value loss. And on top of it is DPU and Yield accretive on such a solid Reit which gets even better in gearing and property spread after. The ex-rights date is also aligned to Ex-dividend. Though Cory secretly hopes for price increase, needs to prepare for reduction in his heart too.

Secondly, Portfolio took a small hit due to Aims Apac Reit secondary listing. So much learning for the past weeks. There is no new share issue but the placement at $1.35 basically allows "richer retailers" to do a quick flush into the market. It has since climb back a little. Guess vested folks will be looking sternly into the coming DPU report for any misgiving. Yes, Cory clinching to George reputation, integrity, acumen, ... apology for the stress if you have read it though unlikely. 

(updated for privacy) 


Cheers

Cory
2019-1101

Cory Diary : Making money work for you

Most people work on salaried income. Spend like 9 hours or even 15 hours a day.  And If you are in this mode of life and trying to get out from this rat race, there is limited options. One of the popular option is to join the long queue with aunties and uncles and hope to strike TOTO. This seems to be harder than kenna strike by lightning but many aren't deterred by it. Cory sometimes go buy when he is down in morale ... but halfhearted. So even harder to strike. LOL

Uncle Cory thinks he should work on a more viable option. That's to have money. And hatched his plan more than a decade ago by saving money. And then he saw the property bubbles come and go. Stocks market bubbles come and go. Even Fixed deposits "Bubbles" come and go ... Every $100, 000 loses $3, 000 annually to inflation ... ( Cory must be "Rich" .... to let this happen  ! ). Are you too ?

After going through Math, Uncle Cory decided to hatch another plan that is really really viable. That's to make money works for him. This time he probably get it right. One of the main reason is that the effort invested is little or using his spare time to learn as Cory needs to work. Of-course Cory needs to have money to Work. He has .... if you remember his first plan. LOL.

That doesn't mean is a linear process as Cory can do in parallel. Amount is never too small.  The experience gained and incremental saving will be compounded for the future. However Cory aren't savvy enough to use leverage other than technically the property loan which also means avoid stacking the risk to uncontrollable level.

So as you can see, Cory is kiasi and kiasu. I think most NORMALs are ! So that's what Cory do below. Depending on situation,  money is apportioned due to regulation and needs through below.


CPF

Investment is very limited when it is "Sure Win". The obvious one is CPF which are systematically saved and contributed. Is not like we have a choice anyway but nevertheless on paper they have saving, contribution and interests elements build into it. As many would know, is politically not so correct to promote to everyone. Cory has a friend who curse day in and out on it that is not our money and that is a fraud but then he plans to reserve it for his children education. huh ?! 

Cory have another friend who is on the extreme end and keep topping up money into CPF till millionaire status however he is a savvy investor, and supporter of establishment. Maybe Life is full of irony and Cory takes is that Investment and political view should not mixed. Cory plan is not to touch them for investment, and optimise enough OA into SA. Maybe some experts got better ideas. Cory is just sharing his current plan.


Bonds/Preference Shares

The next "safer" ones probably are Bonds/Preference Shares on the local banks. Is quite unimaginable they will collapse or write down. However, never say never. Leman Brothers is a living proof. Unique exceptions aside, generally I would assume our local banks are next best things to Gov guaranteed.

Between CPF and above, probably Singapore Saving Bonds (SBB) for more protective funds. Limited to $200 k of 1.7% currently. Not very exciting but good enough for those who are conservative like Cory. However don't get this wrong. The devil is always in the detail and so is goodies. Cory is vested between 2%~2.5% range and is only single digit percentage of his net worth. Most importantly, is money reserve for emergency and loan installments back up which could otherwise by in Fixed Deposits.


Fixed Deposits / Cash

The worst thing to do is too have ample cash in Saving bank doing nothing. Cory typically only needs certain amount for emergency cash flow needs. A large portion of it parked in Fixed Deposits which can earns 1.4% easily. So got this FIXED. You can try other banks .... . Just make sure is really safe.


Equity

Is a path to wealth expansion for those who do not have a really good paying jobs. However, the market is ruthless on those who make mistakes and could set you back for years financially. Cory struggles on who should be in it. Having swim in the shark-infested water for many years and still surviving doesn't mean many can. However, to reach financial independence faster, Cory thinks this is the main path other than building up a business ourselves if we have the right attributes.

This year is especially good for dividend investors due to Cory thinks are the building up of wealth after property curbs and the money printing world wide. Money has to go some where and they end up in stock markets. However this class of investors look for safe investment and REITs and Bonds are quickly identified with.

We know what happens to Risky bonds, and investors learned some big lessons from Hyflux and Swiber that yield is not the primary. Within the REITs universe there is different classes of them too. Again some investors will have to pay school fees if they think all REITs are the same and are only along the line of yields only.

Some REITs are US denominated and from limited experience in US market, is better for Cory to leave this class alone. Life is much more simpler to layman Cory. 


Property

One thing Cory learned from his Condo, is location. The $psf shoots up after Top.  Leverage to the max as the loan is cheapest. So Cory has more cash to deploy elsewhere but not to spend ! Age matters. Young people can maximum their loan period. Condo maintenance very high ... but renovation is cheap as most is already build-up. At the end of the day, is nice to have a shelter over his head. Maybe Cory needs a bigger head now as he finds his Condo too small.


Philosophy

So what is Cory investment philosophy. Simple lah. Don't lose money. 

If we have studied solid "Blue Chip" REITs, the price fluctuations can be quite significant. This may convince some investors that timing matters. While Cory do not disagree to it, what matter is how can to execute them. For example this year REIT returns easily come in with 20% returns. Is a GFC impact to those who stays out in a single year alone create by oneself ! Will the price correct ? Why not. But to hold on to our investment or to re-balance them is another Cory article. A good problem to have.

The mindset for REITs investment is to think it as cash flow. Say 5% yield of initial capital returns. Stock price will fluctuates. Looks for those that can grow. Doesn't matter whether is 0% or 10%. They can be apportion into the portfolio accordingly to risk levels but they all have to be solid REITs and not those that sponsors dumped, mismanaged or have integrity issues. Most importantly the business behinds this REITs are solid or not, and that can build value over time.

Lastly, performance is DPU + Capital Value. How they play around it, we value them appropriately.


Happy Reading and Belated Happy Deepavali 2019 ... sorry ... started to write this piece on that day ... so busy this week.


Cory
2019-1030

Cory Diary : Performance Oct'19

Oei ! Too early lah. Still got a week leh. What's the hurry uncle ?

Next week uncle no feel good leh. Don't be so rigid can ? ( Uncle Cory cheated the time to report good result cannot meh....  )

Seriously why today ? ... All Time High ( ATH ) lah. Next week not sure can maintain or not. I don't want to miss the mountain ... so report first. Shiok right. Lucky Cory Portfolio is not listed else sure kenna ....

Why Cory worry  ? Let's look at STI first ....

STI Long Term Bull, Short Term Dunno !

Based on CoryLogics, STI approaching a resistance after bouncing off from multi-year support as expected else it will be major correction at minimum.  See link on last reasoning in Aug. i think which is basically a broad strategy this year on STI Performance in earlier articles as well. And well I am comfortable to have large stake in STI Index as a buffer for Reits profitability protection.

Finally cleared Facebook. Portfolio now all Singapore team. YTD Cory Xirr 19.1%. (updated for privacy). If we remove Bonds/Preference holdings, Portfolio would have been 23.1%. STI Index 3.81% (excluding dividend).

What's next ? Lack of ideas now. Thinking how should I further protect my profits but need to stay vested for rest of year and ensuring enough dividends for next year. So many asks. So little ideas.

On top of this I have different ideas coming up for next year.

1. Re-Balance some part of my portfolio to lower cost fees
2. Holding back purchases maybe to later part of next year
3. Key deliberation on Bank Stocks, Bonds and Preference Shares Strategy



Cory
2019-1025

Cory Diary : Telegram Craze

Have been trying out new channel of investment sharing. As above is called Telegram. For what it matters, it functions similar like an apps chat hosted by Telegram. You will need mobile number to register.

The advantage therefore we can have hundreds of people in the chat group. There are many different groups for different interests. Manage to get myself into a few Singapore investment groups. I have seen Foods, Jobs, .... but don't get yourself into trouble like Nasi Lemak Group which were in the News recently for spreading pornographic materials. For the political savvy, there is one by our Prime Minister Lee Hsien Loong.

To join the private group they require "link" invitation but you can try search to get the public ones using keyword of interests. Ping me if you need specific investment groups for invites. There is a few SG Reits groups which are more align to my interests. However, there are others for knowledge.

Telegram Chat certainly moves faster than the traditional media channels that I am in use. And there is more responsive helps from others. The Apps is much lighter therefore faster to read, share, stored and communicate.

Few things in the news recently. Reits Reporting season. CMT DPU up 4.8% YoY Cheers, another strong quarter.  Keppel shares limited acquisition by Temasek, cheers because I have it in STI Index  .... . And one not so good which is Aims Apac Reit secondary listing which cause the share price to drop and hovers around $1.38.


Cory

2019-01021

Cory Diary : Asset Allocation Review 2019-1014

A month past since I last reviewed my asset allocation. Time really flies.  YTD Asset increased by 21% thanks to equity market in-addition to regular salary income. Manage to consolidate some of my cash to Fixed Deposits which provide quite good 1.4% returns to my surprise. I have been neglecting them .... . With reduced Cash level at 3.8% of Net Worth (see chart) this is probably the minimum I would go for now. There is some timing involves to support Housing Loan payments with added buffers of-course for emergency needs.

With Saving amount hits absolute base line level needs, near and mid term future funds from Salary and Portfolio probably can now be put more into active service or likely building up the warchest further as in Fixed Deposits.

Cory Investment Portfolio YTD increased by 18.4%. Which roughly tally with the profits recorded this year with a little cash injection to top it off. At this point, maybe I should let the fund runs.

Cory

2019-1014

Cory Diary : Why Dividend Investing is so "Exciting"

Remember in my younger days, RM will furnish us with the idea that investment  today, 10 years later sure Huat with annual 10% based on past 10 years track record. And they will show you the charts on why so. What they didn't tell you is not in the contract is not guaranteed and  the other is that they won't be around few years later to service you or you are't around anymore to bother (touch-wood). The key is don't sell in short term. Probably high sales charge or they will still be around and need to answer to you. lol

Fast forward today. Is there anyone really can guarantee good returns after 10 years ? If so, Banks wouldn't need to sell to us. They will be happy to do it themselves.  I am sure institutions will be happy to invest too. Why bother to grow an army of RMs to service thousands of retailers. 

With Reits that is strong and growing, DPU management has become an expected norm. This will last as long interest rates are low or to be better said, borrowing cost is low relative to earning. Hence the term we hear about Income Ratio (ICR).  It has become a performance metric to drive managers too. That's not easy in execution. 


Why Maintain or Growing DPU is so important ?

So when someone tells me DPU YoY only up 1%, I am smiling till my teeth drop already. Why ? Ascendas Reit has run up significantly for a number of years. This year "just" 23% YTD excluding dividend. See chart below of Ascendas Reit with Dividend Effects !

To grow DPU or maintain for 10 years are not that difficult to find nowadays as long we have Good and Credible Managers however this is not given though. The thing to overcome is Price Anchoring. Will we pay for something that is 23% more expensive from a year ago  ?

Seriously, if I have spare money, I would. Reason being Retailers ask is, "Show me the Money - Sustain-ably". The logic is quite simple. Think of the investment as long term. DPU maintain or increase. This is better than bond already. The cash flow generated covers living expenses. If there is reduction in stock price, we need to look at it in context. Is there fundamental change in the business ?

Next, Trump announced Preliminary Phase 1 deal. Probably due to Biden presidential bid took a hit. The Chinese probably feels a little shaken from it. However, this is far from a complete deals. I doubt it will ever till Trump gets re-elected. What this mean is interest rate will remains low for foreseeable future.

So someone asked. Can I buy MCT today ? Very hard to answer. 7 years of dividends from this year stock price increase. One thing I feel that is never late to invest. Break up our purchases just to be vested some and then see whether we need to average down or up much later. Maybe choose other Reits ( lol ). Don't fall into yield traps. Not all Reits the same. Who knows MCT share price can take another 7 years of dividends leap again. Realistically, the key is how low a yield we are willingly to accept. SSB is like 1.7% range for 10 years. Your take ?

Cory

2019-1012

Cory Diary : Reits Investment Logics

When Recession comes, most investments will be affected. This applies to Correction as well.
Interestingly, this are one of the best time to buy. The question is what stock to buy and will we buy ?

In the last recession, Reit stocks price like many other non-reit investments are badly hit. STI Index reflects the poor situation too. If we are to use today thinking, and understand how the mechanics of how Reits work, one would wonder how can things can go so bad in stock prices.

Basically, Cash or the lack of it as everyone "Hides" them when is one of the best time to invest. Many is taught about the gearing lesson and the dilution of it. Buying during this period do goes against Human Nature of trying to run away from the problem. Trying to do the opposite differentiates the man from the boys. Cory froze in Year 2008. Not that bad. :)

In 2008, many stock prices cut into half easily. Will this happen in next recession ? Never say never. However, with ample liquidity today. And better understanding by investment communities on Reits. Chances are we won't be able to see such deep cut for the next ... next ... (never mind... Cory no crystal ball). There will always be exceptions.

In essence, the DPU of Reits or in another relative term with current price such as yield, say 5% as an example provides the cash flow to one financials as dividend. Multiply it with say 5 year periods will be 25%. That's a recession depth. To be more precise, there are compounded effect and the gearing component especially on properties. And the growth factor which cannot be ignored as it can double dividend gains over the 5 years period too if we pick our stock carefully, and safely to optimize our chance.  


Recession Survival Recipe

1. Able to Survive : Gearing, Loans, Occupancy, 
2. Able to perform "V-Shape" Recovery preferred in stock price : Stock Price
3. Continue to profit from the business during this bad days : DPU
4. Strong Sponsor

Not all Reits the same. Cory want to avoid bad surprises and knives cut. The Gem in Reits are not the Yield but the Growth and Stability that it can perform. Yield is the extras.


Cory
2019-1011