Saturday, 25 August 2012

Portfolio: August 2012

The month of August saw the market value of my portfolio drop substantially.
This was mainly due to:

a) 2 of my largest holdings (Stamford Land & Frasers Centrepoint Trust) going XD.   [Substantial Dividends in!]
b) Reducing some of my exposure to Stamford Land.

The drop was slightly buffered by a pleasant dividend announcement surprise from Wing Tai holdings which strengthened its share price.

Actions taken in August:

 -Sold 50,000 shares of Stamford Land.
  I made the decision to reduce exposure to Stamford Land in favour of cash as I would want to have  more funds available to purchase higher yield stocks for cashflow. I do not foresee it able to pay higher than $0.02 dividend in the coming year. However, its potential asset value unlocking is the reason why I am still holding a substantial position.

Overall strategy: 

I did a relook at my excel sheet and replaced the "Proj. Dividend (2012)"  with "Proj. Annual Dividend" column instead. 
I hope this improves clarity as it better displays my philosophy of using recurrent income projection to judge the health of my stocks.
This gauges the sustainable cashflow of my portfolio as it is generated by the dividends of the companies I hold.
I have put in MY own projections of the annual dividends going forward. 

For my remaining top 3 holdings, I am holding them for the simplified reasons below:
1) Frasers Centrepoint Trust, 6% yield, Holding for stable CASHFLOW
2) Stamford Land, 4% yield, Holding for large % CAPITAL GAIN
3) United Engineers, 4% yield, Holding for  large % CAPITAL GAIN

As mentioned in my previous post in July, my goal now is to improve the overall yield of my Portfolio.
I am now sitting on a more comfortable amount of cash to allow me to redeploy them in companies offering higher sustainable yield (i.e CASHFLOW instead of CAPITAL GAIN) should the market fall.      


  1. Nice amount of dividend you received there in the month of August for Stamford and FCT.


    1. Hi B,

      Thanks. I was lucky that Stamford Land decided to pay a higher than usual dividend this year. Heehee~!
      However, it is a one-off non-recurring event unlikely to be replicated.
      Hope to get more good quality high-dividend counters!

      By the way, I read your blog often too! Like your call on QAF.
      I have a detailed Analyst report for QAF. You keen on reading?
      You can pass me your emailadd. I can email it to you. :-)

    2. Bought QAF last month.
      After attending FA course by Robert, realized
      I have paid a high price for it.
      Will look for opportunity to average down.