3Q 2018 passive income (non-REITs): Centurion.

In 3Q 2018, I decided on many things in the non-REIT space and this will be the first in a series of blogs on my decisions.

Several times in 3Q 2018, I managed to add to my investment in Centurion as its price declined closer to 40c a share.

It is my belief that a dividend of 2c a share is sustainable because it represents a payout ratio of only around 50%.





Centurions's cash flow also remains strong and relatively predictable.

An almost 5% dividend yield from a business run by a savvy management with a good track record is comforting.

Throw in a strong potential to grow further and the investment is even more attractive to me.

Then, plus a big discount to NAV, at closer to 40c a piece, Centurion became a very compelling investment for both income and growth to me.





Centurion's insiders probably agree if the insider buying activity is anything to go by.

Insiders bought more in the months before I decided to increase my investment in the business.

They paid higher prices to add to their stake.

I paid lower prices to add to mine.

That makes me happy.

Should NSF invest $30k savings and pay $4k a year for insurance?

Reader says...

I am a fairly new reader on your blog.

I am thankful that you are sharing your knowledge, and at the same time I have a few questions that I would like to seek your opinion on.

I am currently serving NS.

I have been working part time since 18 and have a saved up 30K which I am planning to use for my university fee (Private).






I am not sure whether I should invest with the amount of money that I currently have or just leave it untouched as it is money that I would require in the coming years (approx.1-2 years).

I am also currently spending $4000 a year on an insurance saving plan (25 year plan, 10 years of paying).

I will have to commit to it for another 8 years before I can stop paying, after reading up I have found out that it is not a wise decision to continue, however cancelling the plan now would only ensure me a value of 1k++ returned.

Thus I am unsure if I should or should not continue with it as the whole plan last for 25 years.

AK says...

Welcome to my blog. 🙂

I will never invest with money which I will need in the near future.

As for insurance, my preference is to buy term and invest the rest.

However, an insurance savings plan can be good for people who do not want to bother with investing themselves but would rather let someone else do it for them.

(Then, you are basically treating it as a pseudo bond component of your investment portfolio.)

You decide. 😉







Related posts:
1. Invest with peace of mind.
2. Financial security plain and simple.