Recession or not for Dividend Investor, the mentality is always Dividend please come. This is true till we are hit by Covid-19 Black Swan event which continue to play out 6 months into the crisis.
One of the key believe is that as long the business is stable, dividends will be relatively stable. It is "Bond like". Is a time where most of what Cory believes get challenged. It is as seems someone up there do this purposely.
Do we change ? Not if we are relatively diversified in our strategy. For example CMT is one of core stock. Despite that it is less than 10% of the portfolio. So with recent income retention by CMT, the Portfolio dividend continues to churn.
In fact, with such dynamic market, this is where new gem can be found into one's basket of stocks. So when there is new opportunity arises, instead of expanding CMT, we can secure a new dividend stock. There are many ways to do this including tapping more of the warchest.
As of now YTD, dividends received $24,990. There is more to come before Jun end. The theoretical dividend roughly $60,500 which is about 14% increase by year end compared to Year 2019. Total dividend received since tracking $350,340. Cheers, Covid or Not
Cory
2020-0615
Prior to the Bank run up recently, I was a little over allocated in Bank segment. This is in consideration of STI Index as well as some of the shares that are in trading. So it was traded off when the bank did the initial run up. This increase a little bit of cash which I have some allocated elsewhere. As we know now, banks continue to run up.
Unsurprisingly, the performance between Portfolio against index narrowed a little but just a little to about 14.5% gap. The bank weight-age if I could remember is about 26% of STI Index whereas Cory Portfolio after consideration of Index shares will be lesser than 15%. Fortunately the broad classification on Services, and Reits segment also register some good run up.
One thing I did in Year 2020 is to ensure I have enough representation in Banks which unfortunately met Covid-19. With the yield that high and looks more sustainable, it makes sense to hold it over others. It gets tough to increase the allocation now despite relative good yield.
Cory
2020-0609
Market Recovery
We just have the steepest decline in STI in March. And when Circuit Breaker (CB) kicks in and enormous Covid-19 packages to support the economy, is already on purpose that we will not have V-Shape recovery simply because it was once extended and now follow by gradual openings. So the Index is also more like an "L-shaped" with a bias elevation for gradual recovery as below STI Index chart. With Index at -14.5% and judge by recent just one week 6% recovery, is not impossible that at the ending part to be a "Slanted U-Shaped" though chances are the probability is lesser.
This week Banks make major recovery, though the banks segment in my portfolio is smaller is still a large part of the portfolio, and it just flows with it though slightly slower. As today, Cory Performance YTD is back to positive by a hairline of 0.02% to be exact and 14.5% above Index (excluding index 1st half div). Theoretical max annual div $59k. Key stocks that I can remember off-hand are Ascendas, CMT, DBS, OCBC. STI Index, Netlink, CRCT .... which totaled about 20 stocks.
Market Relapse
The market may face a situation as we are opening up that we could see spikes in Covid-19 community cases but will we have to return to "CB" again ? Personally I think is unlikely we will face a spike similar to dormitories infection scale in the country. As previously mentioned, we have learned how to manage it through social distancing and mask. Neither will it be tenable for the country to go through CB again and another round of same Covid support packages. It will also be a little embarrassing for the ruling party to face coming election with confidence.
What this mean is the economy has to continue to open. And if there is major cluster infections, we will have to ride through it. How to work around this with other countries will be tricky. So the economy will churn on. Many of us who can will probably continue to Work-from-Home ( WFH ) to void major cluster happening in Offices. However, most of the businesses such as Show Gallery, Malls and Restaurants are likely to stay open.
A historical day for Cory of finally breaking even in Investment for 2020. Great day for Dividend Investing and staying vested. Hopefully it will last ! I am sure many others do too. As I type, DJIA staged near 1K point recovery above 27K in trading hour due to better job figures. Looks like Trump may have what he wanted.
Cory
2020-0606
