How I View My Portfolio Moving Forward?- Part 1

-

This post is to join in the fun to see how I associate the shares in my portfolio to the famous generals and advisors in The Three Kingdoms era, more specifically, the generals and advisors of the Shu Kingdom (my favorite in the novel, followed by Wu and lastly Wei).  I have 2 portfolios, the SG Dividend Portfolio for accumulating Singapore listed shares to build up passive income, and the US Growth Portfolio for growth and hopefully generating capital gains.  I will share my thoughts on the SG Dividend Portfolio in Part 1, and US Growth Portfolio in Part 2.

For my SG Dividend Portfolio, I have 9 shares.  These 9 shares act as the base and foundation for my portfolio, which I will continuously accumulate to grow all of them.  As such, they are like the advisors of the kingdom, strategizing every move of the portfolio to see how the portfolio can eventually grow and expand, slowly but surely.  After much deliberations, I associate the shares as follows:

The top advisors of the kingdom that I adore are Oversea-Chinese Banking Corporation (OCBC-诸葛亮) and ParkwayLife REIT (PWLR-庞统).  They may not be the top performers of the portfolio in the year ahead, as OCBC are cyclical in nature, and PWLR is still very much dependent on interest rates, but they are the 2 shares that I have high conviction in, and I believe they will be stable performers with respect to dividends generated in 2024 and beyond.  I believe both OCBC and PWLR can complement each other in their performances, and if OCBC ever underperforms in the year ahead due to any decline in interest rates, PWLR should be able to remain stable or even eek out slight positives with stable income and lowering gearing.

The second tier advisors that I like are Mapletree Industrial Trust (MIT-邓芝), Mapletree Logistics Trust (MLT-蒋琬), Capitaland Integrated Commercial Trust (CICT-徐庶), Singapore Technologies Engineering (STE-马良) and Hong Leong Finance (HLF-法正).  These shares are performing up to expectations, with stable dividend growth.  I believe MIT, MLT and CICT will remain stable, with improving performances in the year ahead.  With their diverse tenant base, I will not be too worried if any incidents happen to any particular tenant, affecting their ability to pay rent, as seen in other REITs with concentrated tenant base.  HLF, in my opinion, is functioning more like a bond in the portfolio.  Its share price generally remains stagnant, with good dividends annually, making it a stable accumulative dividend payer.  STE, though its performance may be partly volatile due to its aviation business, the defense and technology segment of its business will form a stable portion of its revenue.  

The third tier advisors I continue to hold in my portfolio are Frasers Logistics and Commercial Trust (FLCT-孙乾) and Mapletree Pan Asia Commercial Trust (MPACT-简雍).  They are not the hot favorites, especially in 2023.  FLCT has underperformed majority of the REITs, mainly because their income is generated in foreign currencies, which, after conversion, caused their distribution per unit to decline year on year due to the strength of the Singapore Dollar.  Similarly, MPACT has underperformed due to its overseas properties.  MPACT (or more accurately, Mapletree Commercial Trust), is the REIT that I have held on for the longest period in my portfolio.  However, ever since the merger, its performance has been disappointing, and to date, Festival Walk and China's commercial properties has yet fully recovered from the pandemic stress.  Though pockets of recovery has appeared, but only time will tell when these overseas properties will regain its former glory, and we as investors, can either wait, or sell.

That's all for my SG Dividend Portfolio.  May the 'advisors' continue to help my portfolio to grow and thereby boost the dividend income in the years ahead.  Barista FIRE, here I come...!

Comments

Post a Comment

Popular posts from this blog

My First Trip To Japan Together With My Mum!

-
Image
This is my first trip travelling out of ASEAN region, where I have to plan every bit of the itinerary myself.  For previous family trips to Sydney and Perth, I am generally tagging along, being a follower.  However this time, it is going to be a duo trip with just my mum and myself, which I am both looking forward to, while at the same time worried about how things will turn out there and then.  Nonetheless, the decision has been made by late last year, and I booked the flights for 2, flying with Scoot to Kansai Airport for our 9 days 8 nights trip.  Feels good that a goal set early this year is materialized! Without further ado, I will share the travel journey below: Day 1 Arrived at Kansai Airport in the afternoon, and we grabbed a quick snack at the famous 551 Horai outlet.  Then after much complications with the Haruka Limited Express, we are finally able to board the Hello Kitty's train direct to Kyoto!   Haruka Limited Express We reached Hearton Hotel Kyoto in the late afte
Read more

Incorporating The Idea of Safe Withdrawal Rate to Living Off Dividend Income

-
Image
Recently in a Telegram group, I come across a debate between Kyith from Investment Moats and a reader, where the reader claims that as long as his portfolio is made up dividend stocks with good dividend growth through the years, he can just live off the dividends with the total capital left intact, while Kyith on the other hand, supports the idea of Safe Withdrawal Rate (SWR).  The reader claims that he would not want to sell any part of his portfolio, and just having to live off the dividends makes dividend investing superior to the withdrawal method, while Kyith explains that the reader's perspectives show a lack of understanding of how the SWR method actually works. After reading the long string of exchanges in the telegram group, I decided to pen this post.  Personally, I am definitely a supporter of the dividend investing group, and I also believe, and strives towards just living off dividend income upon FIRE.  From a dividend income investor perspective, the idealistic scenar
Read more

Coping With The 32% Decline In Dividends

-
Image
As a dividend investor, I have been slowly accumulating shares in REITs and dividend shares to grow the annual dividend income since late 2017.  I am blessed and contented with the performance thus far, as the total dividends received annually continues to grow, despite hiccups along the way.  First major hiccup along the way is in 2020, where the strike of the pandemic and the circuit breaker hit businesses and some REITs in a huge way, resulting in cuts in dividends.  The second major hiccup recently will be in 2022 where the FED suddenly hike interest rates at rocket speed, and that created financial stress on REITs, which inevitably resulted in the drop in distributions by most REITs to varying degree.  Thankfully, with the slight diversification into other dividend-paying shares, they helped to mitigate the decline, and allowed my portfolio to experience dividend growth year-on-year. This year, on 23rd February 2024, Hong Leong Finance (HLF) reported their earnings for 2H2023 and
Read more