Guocoland declared 7c DPS and is AK selling?

Reader:
Guocoland declared a 7cts dividend. The share price also up a lot since I followed your call in Mar. Are you keeping your investment for dividend or selling? I am sure you know a famos investment blogger sold all his shares in Guocoland already...

AK:
1. AK does not issue BUY, SELL or HOLD calls. AK is just talking to himself here in ASSI.

2. Whether AK is keeping for dividend or selling his investment should have no bearing on your decision to keep or to sell or, indeed, to buy more. Ask yourself why did you invest in Guocoland in the first instance?

3. Similarly, the fact that another blogger has sold his investment in Guocoland should not mean that you should sell too. He probably had a plan. What is yours?





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I believe that Guocoland will have the ability to pay better dividends as its flagship property in Singapore, Tanjong Pagar Centre, matures.

The fact that Guocoland has declared a DPS of 7c which is higher than the year before shows their willingness to reward shareholders better in tandem with a growing ability to do so.

To an investor for income, the ability and the willingness of a business entity to pay meaningful dividends is a key consideration in the decision making process.

Why did I invest in Guocoland at the price which I did earlier in March this year? Please see related post below.

Related post:
Invested in Guocoland.

A replacement for Croesus Retail Trust.

Reader:
Just wanna seek ur views with regards to Croesus retail trust as it's most likely soon going to be delisted.

Thereafter, I'm thinking of recycling funds into AimsAMP cap Reit to replace CRT to generate high dividend.

Recently, the share price of AimsAMP went down quite a bit and make it rather attractive to purchase. This dividend income is important to me as I use it to pay for the living expenses n accommodation for my child's overseas uni education for 2 more years. Hope u can talk to yourself

AK:
Er... See my latest blog post





Reader:
Thanks, noted n seen. Due to my needs to find dividend income replacement after CRT, do u think AimsAMP at current P/B at 1.0 and it's NAV is equivalent to current trading price at $1.385/unit provides a fare price to buy in? I'm rather attracted to 7.8% annually and hopefully this is sustainable for the next few years at least.


AK:
Actually, do you really need to hunt for replacement dividend income? The capital gain from the sale of CRT would provide more than 2 years of "dividends" in advance, more than enough to fund your child's expenses. That is the point I am trying to make in my blog.

I don't know if it is a good idea to buy more of AA REIT especially if AA REIT is already a big investment in your portfolio.

Apart from concentration risk, being hasty to deploy the funds might not be a good idea.



Croesus Retail Trust is quite different from AA REIT. So, when we are thinking of replacing one with the other, it shouldn't just be because their yields are comparable.

When I got into Croesus Retail Trust, partly, it was because I was looking to reduce concentration in industrial S-REITs which have most of their assets in Singapore. So, it was to reduce sectoral and also geographical concentration risk.

So, it wasn't a simple case of getting a comparable or higher yield.

Of course, it is about what gives me peace of mind. It could be that I think too much.



Reader:
Wow, AK..very thankful for your fast reply and details 🙏🙏🙏
Noted your pointers and I'll keep them in mind.
Currently my AA REIT is not as large as my CRT investment ( really thank u very much as I read n focus in this Reit). Hopefully if AA REIT price weaken further, then I'll look into it.

AK:
I am sure you will do what is right for you. 🙂
Take your time. I think there is no hurry to redeploy the funds from CRT.

That is the beauty of buying into an income generating asset at below fair value. We could see its value unlocked and while waiting, we get paid. That was the case with Saizen REIT too 😉



Reader:
No lal, AK... definitely u r not thinking too much, 小心驶得万年船!
u r definitely doing the right thing n doing things right 💪🏼👍🏼
It's really great to know you since 7 yrs ago 👍🏼
Even though I missed the Saizen REIT, but there will always be more of other good dividend income stocks along the way, I'm sure 😊 Just continue to read ur blog ✌🏼

Related post:
How to deploy Croesus Retail Trust money?