As mentioned in my previous post, 2014 will be a major step in my journey towards financial independence. As the HDB housing loan is my highest expenditure per month, getting rid of it is certainly one huge stone off my chest.
As my priority for the year is getting rid of the HDB loan, probably I will not be injecting too much money into my stock portfolio.
My projected dividends for 2014 (based on current portfolio):
1. SPH: $1,100
2. Starhub: $1,000
3. SGX: $840
4. AIMS AMPI Reit: $432
5. CDL HTrust: $330
6. CMT: $300
7. Starhill Global: $288
8. Suntec Reit: $276
9. SIA Engg: $220
10. Frasers CT: $208
11. SingTel: $200
12 HPH Trust: $184
13. CapitaLand: $140
14. SPH Reit: $100 ?
15. CitySpring: $98.40
16. Far East Orchard: $90 ?
17. Boustead: $70
18. SingPost: $62.50
19. FEHT: $62
Total: $6,000
Avg/month: $500
Monday, 30 December 2013
Saturday, 28 December 2013
Looking Ahead to 2014 (Part 1): To be debt-free
2014 will be a milestone year for me. I am planning to be finally debt-free by the end of 2014.
My outstanding HDB housing loan will dip below $100K in 2014, making it impossible for further re-financing with the bank.
I have done a loan re-financing in 2012, with 2 years locked-in period. It was not a bad deal as the interest rates were 1+% for the first year, 2+% for the second year and 3+% for the third year.
I am planning to pay off the remaining HDB loan by the combination of the followings:
1. Matured endowment policy
- Luckily I have one 21-years endowment policy maturing in mid-2014. Time really flies and 20 years have already gone by since the day I started contributing to that endowment.
2. Housing loan "pay-up fund"
- I have started this fund after the last re-financing, contributing a fixed sum every month into it.
3. Central Provident Fund (CPF)
- I will need to check how much can I use?
4. Fixed deposit or Investment-linked Policy (ILP)
- Depending on the sum of 1 and 2, I may liquidate one of my FD or ILP, also depending on the ILP price. I do not need to touch my CPF, but why not if it is available?
The goal is to be debt-free by end 2014.
My outstanding HDB housing loan will dip below $100K in 2014, making it impossible for further re-financing with the bank.
I have done a loan re-financing in 2012, with 2 years locked-in period. It was not a bad deal as the interest rates were 1+% for the first year, 2+% for the second year and 3+% for the third year.
I am planning to pay off the remaining HDB loan by the combination of the followings:
1. Matured endowment policy
- Luckily I have one 21-years endowment policy maturing in mid-2014. Time really flies and 20 years have already gone by since the day I started contributing to that endowment.
2. Housing loan "pay-up fund"
- I have started this fund after the last re-financing, contributing a fixed sum every month into it.
3. Central Provident Fund (CPF)
- I will need to check how much can I use?
4. Fixed deposit or Investment-linked Policy (ILP)
- Depending on the sum of 1 and 2, I may liquidate one of my FD or ILP, also depending on the ILP price. I do not need to touch my CPF, but why not if it is available?
The goal is to be debt-free by end 2014.
Tuesday, 24 December 2013
2013 Portfolio Review (Part 2): Dividends
I am continuing my review of my stock portfolio:
Dividends collected:
Total dividends in 2013: $5,717.51
Average monthly dividend: $476.46
Annual portfolio yield: 5.54%
In comparison,
Total dividends in 2012: $3,590.86
Average monthly dividend: $299.24
This represented an increase of 59.2% in dividends collected.
Best dividend yielder in my portfolio:
(based on dividends collected against stock values at Christmas 2013)
1. SPH: 9.83%
- Included special dividend after listing SPH Reit
2. FE Orchard: 9.78%
- Included special dividend after listing FEHT
- I did not add the free Yeo Hiap Seng shares here, if added, FE Orchard would be the best performer.
3. HPH Trust: 9.17%
- This is probably due to weakening of the HPHT stock value than anything else.
- Need to monitor closely in 2014.
Worst dividend yielder in my portfolio:
1. CapitaMalls Asia: 1.65%
- Consigned to the dustbin
2. CapitaLand: 2.32%
- Sleeping giant. I am still holding and will divest it when the price is right.
3. Hyflux: 2.72%
- Consigned to the dustbin.
Dividends collected:
Total dividends in 2013: $5,717.51
Average monthly dividend: $476.46
Annual portfolio yield: 5.54%
In comparison,
Total dividends in 2012: $3,590.86
Average monthly dividend: $299.24
This represented an increase of 59.2% in dividends collected.
Best dividend yielder in my portfolio:
(based on dividends collected against stock values at Christmas 2013)
1. SPH: 9.83%
- Included special dividend after listing SPH Reit
2. FE Orchard: 9.78%
- Included special dividend after listing FEHT
- I did not add the free Yeo Hiap Seng shares here, if added, FE Orchard would be the best performer.
3. HPH Trust: 9.17%
- This is probably due to weakening of the HPHT stock value than anything else.
- Need to monitor closely in 2014.
Worst dividend yielder in my portfolio:
1. CapitaMalls Asia: 1.65%
- Consigned to the dustbin
2. CapitaLand: 2.32%
- Sleeping giant. I am still holding and will divest it when the price is right.
3. Hyflux: 2.72%
- Consigned to the dustbin.
Saturday, 21 December 2013
2013 Portfolio Review (Part 1): Deadwood
Time flies and 2013 is ending soon. All my tradings are done and all dividends are collected. It is time to review my portfolio in 2013.
Getting rid of deadwood (Sold):
1. SMRT (75.1% gain) (from initial investment including dividends):
- Past dividend angel with historic good dividend payouts.
- However, now no longer attractive with escalating maintenance costs resulting from past management mistake in neglecting maintenance and excessive dividend cut by new management.
- Verdict: Correct decision. All my gain would be wiped out if I hold SMRT till now.
2. SP Ausnet (64.1% gain)
- Uncertainty due to class action act against the company in Australia (black Saturday bushfire in 2009).
- Probably correct decision as share price weaken further.
3. CapitaMalls Asia (0.5% gain)
- Pathetic dividend yield.
- Probably correct decision as share price weaken further.
4. Yeo Hiap Seng (220 shares)
- Something does come free.
- Given by Far East Orchard after successful listing of FEHT.
- sold off odd lots.
5. Hyflux (24.3% loss)
- Low dividend yield.
- Weak stock price.
- Cut loss (lesson learnt from Global Yellow Pages)
- Probably correct decision as share price weaken further.
6. Global Yellow Pages (71.9% loss)
- An eye sore in my portfolio.
- No further discussion needed.
Overall positive from selling off these stocks.
Wishing everyone a Merry Christmas and a Prosperous 2014.
Getting rid of deadwood (Sold):
1. SMRT (75.1% gain) (from initial investment including dividends):
- Past dividend angel with historic good dividend payouts.
- However, now no longer attractive with escalating maintenance costs resulting from past management mistake in neglecting maintenance and excessive dividend cut by new management.
- Verdict: Correct decision. All my gain would be wiped out if I hold SMRT till now.
2. SP Ausnet (64.1% gain)
- Uncertainty due to class action act against the company in Australia (black Saturday bushfire in 2009).
- Probably correct decision as share price weaken further.
3. CapitaMalls Asia (0.5% gain)
- Pathetic dividend yield.
- Probably correct decision as share price weaken further.
4. Yeo Hiap Seng (220 shares)
- Something does come free.
- Given by Far East Orchard after successful listing of FEHT.
- sold off odd lots.
5. Hyflux (24.3% loss)
- Low dividend yield.
- Weak stock price.
- Cut loss (lesson learnt from Global Yellow Pages)
- Probably correct decision as share price weaken further.
6. Global Yellow Pages (71.9% loss)
- An eye sore in my portfolio.
- No further discussion needed.
Overall positive from selling off these stocks.
Wishing everyone a Merry Christmas and a Prosperous 2014.
Thursday, 19 December 2013
Initiated a small position in SIA Engineering Co
I have always wanted to buy SIA. It is one of the premium brand/stock in Singapore. However, the price is high and there are many associated risks with the stock, such as ridership numbers, oil price, stiff competition, etc.
I think SIA Engineering Co is a safer and less volatile option. SIA has a substantial stake in SIA Engineering Co, which is a leading aircraft maintenance, repair and overhaul (MRO) company providing MRO services not only to the SIA fleets, but to other airlines fleets as well.
Air travel is here to stay and maintenance activities cannot be compromised for the air transport industries. Even if SIA's ridership numbers fall, SIA will not compromise on maintenance. Especially that we already have one bad example in SMRT.
After buying into SGX in November and now SIA Engineering Co, I have used all my investable capitals. I can only stay at the sideline and watch the market now while I return back to "saving" mode.
However, the market is very tempting now, especially some of the Reits and I have to restrain myself from using my emergency fund.
I think SIA Engineering Co is a safer and less volatile option. SIA has a substantial stake in SIA Engineering Co, which is a leading aircraft maintenance, repair and overhaul (MRO) company providing MRO services not only to the SIA fleets, but to other airlines fleets as well.
Air travel is here to stay and maintenance activities cannot be compromised for the air transport industries. Even if SIA's ridership numbers fall, SIA will not compromise on maintenance. Especially that we already have one bad example in SMRT.
After buying into SGX in November and now SIA Engineering Co, I have used all my investable capitals. I can only stay at the sideline and watch the market now while I return back to "saving" mode.
However, the market is very tempting now, especially some of the Reits and I have to restrain myself from using my emergency fund.
Saturday, 14 December 2013
My biggest loss - Global Yellow Pages
Last month I told my buy and hold strategy that works with SGX. As promised, now I will blog about another of my ex-stocks that buy and hold strategy failed miserably.
As you can see on the title of this post, that stock was Global Yellow Pages. Although it was my biggest loss, some lessons are learnt.
While I have a lot of travels in my early days, I was in Singapore when Yellow Pages went IPO. It was just "Yellow Pages" then, without the "Global". Yellow Pages's IPO price was a lofty $1.66. Unfortunately, I was a noob then and I listened to my friend that "Yellow Pages was good and have a lot of advertisements, etc, etc".
Lesson 1: Do not listen to others. Do your own research on your investment.
In the old days, during the annual renewal of new telephone books, my company dedicated one whole room to hold all the new telephone books, before distributing to every employee with a telephone extension. Now, with internet and various search engines, nobody flips the "yellow pages" anymore.
Lesson 2: Beware of obsolete business model.
Similar to SGX, I held Global Yellow Pages since its IPO days. I was busy with work and practically kept it and forgot about it.
Lesson 3: Monitor your stock portfolio closely.
After the 2008 stock market crashed, people may think what goes down must come up. Global Yellow Pages went into free-fall and because of its obsolete business, never recover.
Lesson 4: What goes down may not come up.
When I finally sold Global Yellow Pages, it was just 7.2% of my initial investment capital for GYP. On hind sight, I should have monitored my stocks closely and exit much much earlier. Luckily, GYP made up just about 2% of my total portfolio.
Lesson 5: Adopt stop-loss for capital preservation.
Beginning this year, I have no more traveling. I have more time to read and learn from books and from many investment bloggers. At the same time, I am able to grow and nurture my stock portfolio.
As you can see on the title of this post, that stock was Global Yellow Pages. Although it was my biggest loss, some lessons are learnt.
While I have a lot of travels in my early days, I was in Singapore when Yellow Pages went IPO. It was just "Yellow Pages" then, without the "Global". Yellow Pages's IPO price was a lofty $1.66. Unfortunately, I was a noob then and I listened to my friend that "Yellow Pages was good and have a lot of advertisements, etc, etc".
Lesson 1: Do not listen to others. Do your own research on your investment.
In the old days, during the annual renewal of new telephone books, my company dedicated one whole room to hold all the new telephone books, before distributing to every employee with a telephone extension. Now, with internet and various search engines, nobody flips the "yellow pages" anymore.
Lesson 2: Beware of obsolete business model.
Similar to SGX, I held Global Yellow Pages since its IPO days. I was busy with work and practically kept it and forgot about it.
Lesson 3: Monitor your stock portfolio closely.
After the 2008 stock market crashed, people may think what goes down must come up. Global Yellow Pages went into free-fall and because of its obsolete business, never recover.
Lesson 4: What goes down may not come up.
When I finally sold Global Yellow Pages, it was just 7.2% of my initial investment capital for GYP. On hind sight, I should have monitored my stocks closely and exit much much earlier. Luckily, GYP made up just about 2% of my total portfolio.
Lesson 5: Adopt stop-loss for capital preservation.
Beginning this year, I have no more traveling. I have more time to read and learn from books and from many investment bloggers. At the same time, I am able to grow and nurture my stock portfolio.
Saturday, 7 December 2013
SGX Purchase - Balancing my stock portfolio
My post last month mentioned that the cost for my SGX will come down to zero within the next three years. However, this is not going to be as I have added one more lot of SGX at end of last month.
The purpose of adding SGX is to balance my portfolio. My portfolio was set up using SGX, SPH and Starhub as foundation stocks, while Reits and other dividend stocks are supporting casts.
For the purpose of diversification and not to tie down the well being of my portfolio to the fortune of any single company, my three foundation stocks should not exceed 20% of the overall portfolio. On the other hand, the supporting casts should not exceed 10% of the overall portfolio.
One of my friend is holding Starhub in about 80% of his stock portfolio. While Starhub is a good company, he is bearing unnecessary risk by concentrating too much in a single stock - meaning putting too many eggs into a single basket. He is also working in Starhub, so his career and investment are all tie together with Starhub.
We do hope Starhub continues to do well in the coming years!
The purpose of adding SGX is to balance my portfolio. My portfolio was set up using SGX, SPH and Starhub as foundation stocks, while Reits and other dividend stocks are supporting casts.
For the purpose of diversification and not to tie down the well being of my portfolio to the fortune of any single company, my three foundation stocks should not exceed 20% of the overall portfolio. On the other hand, the supporting casts should not exceed 10% of the overall portfolio.
One of my friend is holding Starhub in about 80% of his stock portfolio. While Starhub is a good company, he is bearing unnecessary risk by concentrating too much in a single stock - meaning putting too many eggs into a single basket. He is also working in Starhub, so his career and investment are all tie together with Starhub.
We do hope Starhub continues to do well in the coming years!
Thursday, 5 December 2013
Dec Fixed Deposit Rates Update - 1.10% P.A.
First some clarifications: Fixed Deposit is not for real investment. My review on Singapore's FD is limited to S$50,ooo and below; and tenure term not exceeding 12 months. Fixed Deposit is for parking the emergency fund and allowing immediate access to the fund when needed. These are also based on the following considerations:
1. Singapore's Deposit Insurance Scheme maximum coverage up to S$50,ooo only.
2. Long tenure term will potentially affect your cash-out value for your emergency fund, as you may suffer a penalty fee for early withdrawal.
Back to the update:
The highest interest rate in the market now is still 1.10% p.a., offered by 3 banks:
1. ICICI Bank
HiSAVE Fixed Deposit is an online fixed deposit account linked with the HiSAVE online Savings Account and all monetary inflow and outflow of funds happens online from and to such HiSave accounts. Minimum placement sum for HiSAVE Fixed Deposit account is $1,000.
HiSAVE online savings account starts from as little as $1. No minimum balance requirements and no monthly fees.
2. CIMB Bank
The promotional interest rate is 1.10% p.a. for 12 months tenure. Minimum placement sum $25,000.
3. RHB Bank
The promotional interest rate is 1.10% p.a. for 12 months tenure. Minimum placement sum $50,000.
Please let me know if there is better offer in the market.
1. Singapore's Deposit Insurance Scheme maximum coverage up to S$50,ooo only.
2. Long tenure term will potentially affect your cash-out value for your emergency fund, as you may suffer a penalty fee for early withdrawal.
Back to the update:
The highest interest rate in the market now is still 1.10% p.a., offered by 3 banks:
1. ICICI Bank
HiSAVE Fixed Deposit is an online fixed deposit account linked with the HiSAVE online Savings Account and all monetary inflow and outflow of funds happens online from and to such HiSave accounts. Minimum placement sum for HiSAVE Fixed Deposit account is $1,000.
HiSAVE online savings account starts from as little as $1. No minimum balance requirements and no monthly fees.
2. CIMB Bank
The promotional interest rate is 1.10% p.a. for 12 months tenure. Minimum placement sum $25,000.
3. RHB Bank
The promotional interest rate is 1.10% p.a. for 12 months tenure. Minimum placement sum $50,000.
Please let me know if there is better offer in the market.
Monday, 2 December 2013
My Stock Portfolio @ end November 2013
| No. | Stock Name | Lots | Portfolio% | Avg Cost$ | Breakeven$ | Market$ | |
|---|---|---|---|---|---|---|---|
| SGX | |||||||
| SPH | |||||||
| Starhub | |||||||
| CapitaLand | |||||||
| CapitaMall Trust | |||||||
| CDL HTrust | |||||||
| Starhill Global | |||||||
| Suntec Reit | |||||||
| AIMS AMPI Reit | |||||||
| SingTel | |||||||
| Frasers CT | |||||||
| HPH Trust | |||||||
| SPH Reit | |||||||
| FE Orchard | |||||||
| Boustead | |||||||
| CitySpring | |||||||
| Sing Post | |||||||
| FE HTrust | |||||||
Sold:- CapitaMalls Asia.
Bought:- Frasers CT, SGX.
Dividends collected in November: $614.97
2013 avg dividends/month: $441.42
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