Investing for Dividend is really Great!

Firstly, let me welcome 6 new subscribers to this blog. I appreciate your support and interest.

Secondly, I must admit I have neglected this blog for the past one month. Work and family life have been hectic and have taken priority. The activities at home and at work are actually still very intense. So this will be a short post.

Since 2017, I have been actively tracking dividend returns and using it to refine the approach to shape my investment choices. You may have seen my earlier Q1 post on dividend return that showed that I remained on track to meet my target yield of 5% per annum as on 31 Mar 2018

collectdividend

As of today, with many local companies already ex-div and Q2 being a traditionally “dividend distribution heavy” quarter, I am glad that my dividend yield year-to-date has outperformed the expected yield of 2.5% (50% of 5.0%).

Q1 yield received was 1.2% of portfolio.

Q2 yield received to date has already reached 1.8% of portfolio. And that’s not all, I am still waiting for dividend declaration from Asian Pay TV and Accordia Golf Trust. Both are known to pay >5% dividend rate.

So, combined Q1 and Q2 yield is 3.0%. I am really very happy and I am glad that my shift in investment choices to more dividend companies rather than growth is giving me a more stable returns.

I am increasingly more confident now that I should get 5% by end of the year regardless of how the market performs in the remaining part of the year as long as I have the capacity to hold the shares. If I don’t sell, I won’t realise the loss when there is a major market meltdown. I will just camp myself in and wait it out.

Hence, like they always say “Invest with the money you can afford to lose”, then you will not be forced to liquidate at a permanent loss. Good companies will make use of a major market downturn to grab opportunities that are available at a distress – hence, so shall we 🙂

Up to today, the top 5 contributors to my dividend purse are:

  1. M1
  2. Starhill
  3. Ireit
  4. SPH
  5. Cache

There are 2 new faces – M1 and SPH in the Top 5 as compared to Q1. It is just due to the fact that they went through ex-div this quarter.  Starhill, Ireit and Cache remain firmly in the Top 5 and I am comfortable to hold them.

Hope my story will inspire you to adopt a dividend investment mindset.

Investing in growth companies is always exciting because you can win “big” but if you are investing for your retirement or passive income, look for companies that can provide you with a regular and very importantly sustainable dividends. Win Big also mean Risk Big. Investment for retirement is not a gamble.

In my opinion, dividend investing will help us to sleep better and have a peace of mind – isn’t this one of our aims in life too?

Take care folks and will pen again as soon as I have some time in between.

thankful

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10 thoughts on “Investing for Dividend is really Great!

  1. Very nice Warriortan! I’m so glad to read that you’re right on track. I agree too that there is no need to cash out unless 1) there is a better opportunity out there and 2) you did the wrong research and decide that the stock is no longer worth investing in. It will be good to have emergency funds and war chest close to us. 🙂

    Liked by 1 person

      1. We have the same aim! What are your thoughts on Starhill after the latest results? I am guessing given the weakness in results/price, it is trading below mean (you believe in reversion to mean right) but still at a huge discount to PB.

        Liked by 1 person

      2. I think they are affected by the Malaysia election surprise lately. Some of their assets are in Malaysia. Although the risk is still there, I think for consumer retail, it should not be very bad. I will be more worried for those companies involved in big projects and/or are in national sensitive industry.

        Liked by 1 person

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