With the year coming to a close, all the expected dividends have been accorded for. Year 2019 seen a number of acquisitions and mergers which has change the expected dividends. Therefore some deliberations made for it. Total dividend for Year 2019 received $52, 299 which is equivalent to $4,358 monthly cash-flow. Cumulative dividends tracked $324,750.
Scrip Dividends
Decided to take up Aims Apac Reit and OCBC scrips which are a good discount. To compute dividend returns two steps were done. First is to register the expected dividends and then replace them with the number of shares given.
Rights
Ascendas Reit issued relatively deep discount of Rights. They were sold off for about $1,700.
Strictly speaking I am not sure should count them in as dividend but since is one-time, and it supports cash-flow, this will be included for this time.
Merger
Ascendas h-tr merged with Ascott Reit. Took profit on half before merger. Remainder will get $2,715 cash. As the de-listing is on 3rd Jan 2020 it won't be counted into Year 2019.
"A-HTRUST Scheme, each A-HTRUST Stapled Unitholder as at the A-HTRUST Scheme Entitlement Date will be paid S$0.0543 in cash and will be issued 0.7942 in Ascott Reit-BT Stapled Units issued at a price of S$1.30 each, in each case, for each A-HTRUST Stapled Unit held by it."
The other merger is between Frasers Com Tr and Frasers L&I Tr. Decided to take profit and exit the counter.
Private Placement
SPH Reit has a private placement and unit holder has early dividend registered however the cash will not be seen till Year 2020. Since is already registered it will be counted towards Year 2019.
For Year 2020, theoretical dividends on current holdings will be $53, 384. This should hits higher with capital injection and DPU growth assuming no market surprises. The far fetched goal will be $60, 000.
Happy New Year
Cory
2019-1229
Has been writing on performance for years. Some years like this year we have good result as in 20% XIRR. That doesn't mean good profits. In good year if we aren't earning good absolute profit we are just like in baby pool ... splashing. That's fine if we are still a baby. The worst outcome is to give a baby large amount of money to swim in the sea !
When Cory is just learning or in the long learning curve years of investing, he understands the needs of baby pool. We need to use XIRR to measure our performance. We then need to progress to swim in larger and larger pools as we gain in experience with saving. So how large is large ? We probably need to go back to why we invest. If is to help support our retirement then the size of investment should be enough to support that. If is partial, so be it due to individual preference.
Talking about size of investment. For a 5% yield portfolio on average 2% growth on a million dollar portfolio. The returns will be $50k dividends and $20k capital gains. For 2%, capital gain is only good to see but not for Cory to take in an inflationary world. If Cory takes it as dividend for cash flow needs, portfolio becomes smaller over time in real term. Again, that's fine if that's the plan. So to put into perspective on the obvious, for a capital of 100K that's 5K annual dividends.
One would think if Cory can have strong performance in baby pool, naturally given larger amount he would do the same performance. Assume same market condition, with much larger pool size, the waves will make the leg shivers, his breathing breathless and his nights cooler. Cory knows because he has makes mistake he doesn't when small.
At the end of the day, Real Performance = Investment Size x XIRR = Absolute Profit or Loss.
So are you an Adult splashing in Baby Pool ? Is ok if we aren't ready. Really.
Cory
2019-1227
From start of year till now, Portfolio has undergo significant changes with my thinking and progress. Expense Ratio is now at 0.85% which almost $10 K. I think did about 150 to 200 trades. One of my practice is to break down my purchases and sales so that ramp up the numbers. Thankfully my broker has agreed to give me a better rate.
Year 2019 has been joyful because of lowering yield pushing up Reits. I would think the curbs on property helps too as there is too much cash in the system looking for safe returns. Whether it will fallback is anyone guess but for dividend players this could be good news ironically.
This is the first time i present my portfolio in excel in this format. Something which I have been using for long time. Portfolio table reflects what I have and what have left the portfolio. The returns are mainly computed using XIRR or situation where I could safely use formula of returns/invested ratio to give more absolute feeling on returns. Take note the yield and price is just an estimation and delayed.
Yes, it has been a good year for Income Investor even for Cory with Fixed holdings within the portfolio. This year XIRR 20% for a 47% Reit portfolio. Take note that Profits will be lower due to past year losses. And returns included Dividends/Rights. Moving forward my posts will be less revealing as wife wants more privacy. Happy Wife Happy Life. I fully agree ! 😃
Cory
2019-1224
