DBS, OCBC and UOB to pay well! Q3 2023 passive income to be higher! T-bill auction with free money from AA REIT!

Whenever I could find some free time, I would go out to sea in the last few days.

It is my latest hobby!

Well, in a sense, anyway.

Look at my latest ship!

Look at those cannons!

If you are interested in some naval warfare too, this is my latest free to play find.

Absolutely free to play and perfect if you feel like destroying stuff to feel better after a rough day.

Use my referral link for the Asian server and both of us will get some freebies in the game:

World of Warships. (AK's referral link.)

Anyway, now that the serious stuff is out of the way, let's look at other stuff.

In my last blog, I talked to myself about the bumper interim dividend from UOB.

Up by 40%, it made me giddy with joy!

I expect OCBC and DBS to pay higher dividends too.

This means they should at least match their dividends in the last quarter.

If nothing goes wrong, my passive income for Q3 2023 should be somewhat higher than for Q3 2022.

If this pans out, it would be quite a feat since 2Q 2022 passive income generated by my investment portfolio increased by an impressive 42% compared to 2Q 2021 (mostly because the banks were still paying lower dividends in 2Q 2021.)

Whether passive income in Q3 2023 would be higher than Q2 2023 is less certain and, for that, I would wait and see.

On to another happy discovery.

When I checked my bank account, I found a few thousand dollars deposited by my old friend, AIMS APAC REIT (AA REIT.)

With my war chest largely depleted by IREIT Global's rights issue, getting some free money from AA REIT makes me love the REIT more.

As there will be quite a bit more dividend to be received from UOB and probably OCBC and DBS too next month, I decided to increase the quantum in my application for the upcoming 6 months T-bill with some of the money.

It is now open for application and the auction is happening on 3 August.

I will be going for non-competitive bid, as usual.

There is no need to agonize over a competitive bid since whatever the cut-off yield might be, it would most likely be higher than whatever interest rate the banks are offering for a 6 months fixed deposit.

So, the exercise to strengthen the fixed income component of my investment portfolio continues.

It gives my portfolio greater stability.

It gives me greater peace of mind to know that if I need more money, I have a T-bill ladder I can rely on.

This means I would not have to sell my stocks at prices not of my own choosing if some things should go terribly wrong in life.

Being forced to do something, not having control over our lives is not a good feeling.

With the yield curve still inverted, 6 months T-bills are going to remain rewarding.

So, they help to keep me sane and happy at the same time.

If AK can do it, so can you!

Related posts:
1. 2Q 2023 passive income.
2. 2Q 2022 passive income.
3. T-bill ladder is attractive.

UOB: Interim dividend 85c per share! Huat ah!

During "Evening with AK and friends 2023", I said that UOB would continue to grow its earnings very strongly. 

This is thanks in a large part to its acquisition of Citibank's consumer business in 4 South East Asian countries.

UOB has delivered and in terms of dividends, it has exceeded my expectation.

85 cents interim dividend per share has been declared.

Huat ah!

Source: UOB.

Although I only started investing in UOB during the COVID-19 pandemic, it grew into one of my largest investments within a few weeks.

"When it's raining gold, reach for a bucket, not a thimble."

Warren Buffett said this, not me.

Since then, I have been adding to my investment in UOB, most notably when the price of its common stock languished at around $26 a share for a while last year.

This enlarged investment in UOB is going to bring home a larger portion of bacon.

I remind myself that UOB retains 50% of its earnings which means that it is growing more valuable over time.

If the constant buying back of shares by UOB is anything to go by, this is probably going to be the case for some time to come.

Investing in UOB is not just investing for income, it is also investing for growth.

We can have our cake and eat it too.

If AK can do it, so can you!

Related post:
Banks: Even higher dividends?