What did I do in the non-REIT space in the first 6 months of 2015, specifically in stocks which pay dividends?
I added to my long position in Accordia Golf Trust which I initiated in late 2014. AGT's unit price fell to a level which I felt made it a fairly good investment for income. Of course, it has fallen to a lower level by now and I have been accumulating on weakness.
I added to my long positions in Hong Leong Finance and Singapura Finance (both trading at a discount to their NAVs) as I believe that a rising interest rate environment should benefit them because their NIMs should improve. Interest income forms about 80% of their total income. So, they are not as resilient as the 3 local banks but they should benefit disproportionally when interest rates are higher.
Singapura Finance |
I added to my long position in Wilmar International which, if we have been following its many developments, is a bigger and more dynamic creature now than a few years ago. There are many things to like about Wilmar, including its relatively depressed stock price which incentivises me to buy more. So, I bought more when its stock price dipped slightly below its NAV earlier this year.
I added to my long position in ST Engineering which is one of the founding members of my investment portfolio. Although they will pay only 75% of their earnings as dividends instead of 100% when I first became an investor donkey years ago at $1.55 a share, it doesn't bother me. The fact that the company has grown and enlarged their footprint in the USA over the years is good news to me now with the US$ set to strengthen against the S$.
I added to my long position in SembCorp Industries and reduced exposure, both actions within 2 or 3 months of each other. For the full story, read related post at the end of this blog post. I believe that SembCorp Industries and SembCorp Marine have both hit a speed hump but I don't think they are going kaput.
SembCorp Industries |
The world will still need crude oil and other products derived from crude oil. The world will still need energy. The world will still need clean water. SembCorp Industries should be more resilient than SembCorp Marine, obviously, but since I believe that they will both do well enough given time, I am willing to wait and be paid while I wait.
I also added two dividend paying stocks to my non-REIT income portfolio as their stock prices retreated from their highs: Tai Sin Electric and Starhub. For the stories, read related posts at the end of this blog post.
For the first 6 months of 2015, I received dividends and distributions from the following non-REITs:
1. SingTel
2. APTT
3. SPH
4. Croesus Retail Trust
5. OUE Limited
6. SembCorp Industries
7. SembCorp Marine
8. Wilmar
9. NeraTel
10. Hock Lian Seng
11. ST Engineering
12. Hong Leong Finance
13. Ascendas H-Trust
14. QAF
15. Accordia Golf Trust
SPH retains majority ownership of SPH Trust. |
I need to remember that that Hock Lian Seng's dividend included a special dividend and it is, therefore, extraordinary. I must not think that it is going to recur although they do have a lot of cash on hand. The sale of Skywoods condominium is chugging along well enough and it is by now almost 70% sold. With a packed order book, Hock Lian Seng should continue to deliver good results in years to come.
Oops. I almost forgot.
For the first 6 months of 2015, passive income received from non-REITs is S$38,925.57 which works out to be $6,487.59 per month.
Related posts:
1. 2014 full year income from non-REITs.
2. SembCorp Industries: Partial divestment.
3. Tai Sin Electric: Nibbling for yield.
4. Starhub: A nibble at $3.85 a share.
5. Hock Lian Seng: Robust order book.
6. 6M 2015 passive income from S-REITs.
7. AK says create your own Dividend Machines.