Cory Diary : Does NAV really Matters in Dividend Investing ?

Often I hear people uses NAV to gauge investment merits. Is a good metric but should never be the only imo. This is based on my personal experience and logic. NAV is only meaningful if the underlying assets is not as productive as we think it should be and the valuation of the company is rather complicated to understand.

In dividend investing, especially reits, the business typically is the property income and the DPU. There aren't rocket science needed. Many reits today publish investor reports. We have good enough information. Ofcourse is still skew towards what Management like us to see. Who doesn't ? That doesn't mean we can condone.

If a company is returning 5% yield consistently. Does it matters to us if the Price/NAV is 1.3 or even 1.5 as an academic question ? The question in my mind will be sustainability of the dividends. The MOS of it's properties. The quality of the earning. The valuation of it's properties. This may explains why the high Price/NAV.

Now, with recent volatility of the market. If the yield of such asset shoots from 5% to 6%. Will you buy ? If the yield expects to drop from 5% to 3%, will I sell ? That depends due to price or reduced DPU. More a fundamental question. Recently I sold 25% of CMT due to price. My fear of losing out stable future dividends creeps in though just a little , 5% yield is not something i could find easily with similar alternative. This is clearly a capital gain trade with re-balance in mind. One could have said I still have 75% but that's not the point. The constant search for quality diversification is always there. Always on the move.


Cory

2018-1208

Cory Diary : Asset Tracker 2018-1201

One more month to year end. I am glad this is going to be over soon. It has not been a profitable market considering the rich valuation we seen with the yield. So the good news could be there is no significant impact to my portfolio.

I am 49. I wish I could say at 55 I would really shout that is it ! I am on full retirement. That will be a goal to achieve but not something I would really do.

Anyway, cut it short. Here's my chart.

Cheers

Cory
2018-1201

Cory Diary : Preparation for 2019 Portfolio

We are near to end of year. While I am still hopeful for break even this year, there is good chance 2018 is negative to most investors on average. While everyone is still busy bandaging your wounds, I think we should at the same time prepare ourselves for 2019.



Portfolio is about managing risk

Managing Risk

1. Re-Balance : Reduced 25% in CMT in earlier blogging. This is due to good run-up to minimum expectation. I wish it could do more but I can settle with remaining 75% shares as they give good dividends even at this level.

2. Clean up : I have sold down largely AimsAmp Cap Reit yesterday. This is to take advantage of recent up swing at 1.37. I have this gut feeling it won't stay high for too long as is a resistance level. I have raised cash from this. The dividend gap to fill from this sale will be glaring if I do not do something this year.

3. Positioning for 2019 :

Shift some funds into enlarging Ascendas-hTrust at lower price. The yield is good. The gearing fine. The grow prospect is still worth a bet. This will fill some of my dividend plan.

Increased STI ETF as I think is at lower point. Averaging down Index ETF is much safer and is as keen as cost averaging and diversifying my risk rather than buying local banks shares directly which direction can be anybody guess.


Investigation Reviews

I looked at APTT a few times but sill do not feel comfortable. There will be technical rebound.
How large and how long is subjective. To myself, going in right now is pure gamble as I lack knowledge and feel for this counter. Short trade maybe nice but it won't be for 2019.

With recent low oil price, Keppel price still do not match the news. M1 purchase seems not a good deal. Property aren't helping. Chances are Keppel will have room to go much lower.

After losing OCC 5.1%, I have been actively looking for alternative. Temesek 2.7% doesn't cut it as is quite near to SSB level. Enlarging Fraser Bond 3.65% will put me over exposed to it. SSB has been max out. I won't want to put more into treasury for the yield is too low. Astrea IV trading premium is too high.


Looks like I still have few more punches to do but I am in no hurry.



thanks

Cory

2018-1128