Is dividend growth y-o-y a must? Am I too easily contended?

Let me first reflect on Aug 2019 before going to the main topic. It wasn’t a happy month for many investors. Most indices across the world went lower, with Hong Kong being one of the worst. Guess what, Singapore wasn’t far behind. These two trading hubs are bearing the backlash from the US-China trade war. Ironically, the US and China (Shanghai) stock indices are not faring too badly.

boat on body of water
Photo by Nextvoyage on Pexels.com

Most of my equity investments are in Singapore and Hong Kong. Hence, I am seeing “red, red and more reds” everywhere across my equity portfolio.

It is painful to watch as the valuation kept dropping. I had opened up my warchest and tried to scoop up some stocks that I felt have become attractive in terms of dividend yield if I take a long term view.

In many circumstances, I could have waited but honestly no one could predict the bottom, so I bought them in bite-size as they went down and down. I also kept my regular monthly investments in my index portfolio. All in all, it is almost an entirely “BUY” month for me. Hope it will turn out well eventually.

On a more optimistic front, I usually like August because this is the month that many companies will declare their mid year interim dividend.

Thanks to Stockcafe, I am now able to track and compare the dividends declared by the companies in my portfolio in months and between 2018 and 2019. See chart below for my porfolio actual performance.

DivAug18&19

Blue is for 2018 and Orange for 2019 and each bar represents the total amount of dividends that went “ex-div” in that month from Jan to Dec.

As you can see, July and August are “GREAT” months for dividends. So are May and Feb too.

Among all the KPIs I measure to determine the success level of my investments, the total amount of dividends I received has my highest attention.

Year to date 2019, the amount of dividend I received is almost the same for the same period in 2018. I am really happy about it as it is showing sustainability in the passive income that I am getting.

According to Stockcafe’s projection of the total dividends I can expect by end 2019, I have already received 80% of the total, with 20% to go for the next 4 months. Hence, I am fairly confident that my total dividends for the year will be on par with 2018.

black haired woman hugging gray pillow near glass panel window
Photo by bruce mars on Pexels.com

Maybe you would say that I am too easily contended and I should have expected dividend growth year by year. Yes, that will be great and I do hope 2019 will be ahead of 2018 by end of the year. Even if it is on par, I am happy as I feel that I have a portfolio that has shown resilience to deliver consistent dividends in the midst of all the turmoils in the markets.

For those interested, my top 10 dividend contributors (up to Aug 2019) are:

1 Manulife Reit
2 OUE Commercial Trust
3 Singtel
4 Capitaland Retail China
5 OUE
6 HPHT
7 Ireit
8 Frasers Property
9 Cache
10 Centurion

Familiar names, I am sure to many of the local Singapore investors who are dividend collectors too.

Have a great Investment week folks.

Regards,

Warriortan

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6 thoughts on “Is dividend growth y-o-y a must? Am I too easily contended?

  1. My question to you is dividend versus dividend yield and the total value of the investment, value+yield. For instance, ATT has a great yield of about 6%, but the price is going down. I keep it as I have faith in the long term prospects for the company, but I’m sure about the short term value of that 6%. Are your stocks holding up to that, or perhaps with my ATT position, which I am not suggesting you or anyone else buy, do you trust the long term prospects for the company?

    Liked by 1 person

    1. Yes dividend yield is important too. The sustainability of the company to continue the same amount of dividend is critical and we have to make a judgement of this – which is the risk involved. Hence, only invest in quality and established companies with an economic moat for dividends.

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