One more month left until the end of 2018. It’s time that I start reflecting on my achievements for this year. Soon, you will also see my expenses report, goal review and the final portfolio update in preparation for new goals in 2019. I still have one month to accomplish my goals for the year and I’m wondering how I will feel after 2018 have passed.
Will I be upset or elated over my experiences? Somehow, I feel that self-fulfillment has been something that I’ve always struggled with. Since young, I’ve been taught to be competitive and aim for higher achievements (e.g. getting better results when I’ve already gotten 85/100 for a test), but when will I ever find the silver lining? It is probably something deeper inside me that I have to deal with.
But anyway, I’ll put reflection aside for now – or a month – and focus on something more relevant.
November is a nice month for my portfolio and its performance has been pushed up further with a declining and volatile STI.
Stats are as of 2nd December 2018
Time weighted returns: -0.93% v.s. -5.46% (STI ETF)
Nothing too spectacular but if this continues I could at least reach my goal of a rough 5% lead against the index. I’m pretty sure that will have a significant effect after many years.
Because every single percentage point counts, as long as time is on your side.
Very surprised that AEM became my top holding. I never expected that the price of AEM will move this quickly and honestly, even at $1 per share, I believe that it is still decently undervalued as compared to my target price of $1.13 which is about a safety margin of 12%. They have a strong customer (Intel) but competition is nonetheless challenging in the industry.
I should probably blog more on my thoughts about AEM.
For now, it’s a hold.
Let’s move on to the reds.
Tat Seng Packaging has proven again how unpopular net-nets can be, and almost as illiquid as they are. The spread for this stock is immensely big, and can literally drop or increase by 6% to 10% in one day of trading alone. It is a good stock to hold to train your patience as an investor.
Considering that it is about 8% lesser per share now as compared to my buying price of $0.652, it is more undervalued than ever. The last earnings report in August was better than the year before and the company should be worth more now than it was one year ago in terms of revenue and operating cash flow. At the end of the year, Tat Seng Packaging should also release their annual report. I’ll get some more updates from the business then.
Should I have enough spare funds, I will consider to add on to my existing shares with a potential dividend yield of >5%.
Now, onto CDG. It would seem that as expected, since I bought it at pretty fair valuation, the returns are barely mediocre, and if compared to the other holdings, the worst performing of all on the surface. I must admit that I lacked the virtue of patience when I bought it at $2.3x per share, but still as a fundamentally strong company, I foresee myself being a long term shareholder. This year, CDG has given me a 4.452% dividend yield. Which also leads me to the next topic…
Yearly Dividend Yield
for all my stock holdings.
Since I will not collect any dividends in December, this dividend update will be the last for the year. The total dividends that I have collected is $2,316.14, and although I don’t have the final numbers yet to see how much percentage of that is to my expenses, I would say that this amount of money is not something to be dismissed.
What can I do with the $2,316.14? I hope that with my own due diligence and patience as an investor and frugalistic ways, it will double in 2019. And then I’ll be taking another small step closer to financial freedom.
The final dividend yield for my current holdings are as follows.
- Valuetronics – 6.211% (Based on XD in Jul and Nov)
- AIMSAMP Cap REIT – 6% (Based on XD in Feb, May, Aug and Nov)
- Keong Hong – 4.63% (Based on XD in Jan and Jun)
- Tat Seng Packaging – 4.601% (Based on XD in Apr and Sep)
- ComfortDelgro – 4.452% (Based on XD in May and Aug)
- Nikko AM STI ETF – 3.5778% (Based on XD in Jan and Jul)
- AEM – 1.997% (Based on XD in Aug)
I am surprised and pleased with the dividend yields at the same time, as I only hold 1 REIT and I am not strictly an income investor. At lower prices, we can have a bigger safety net not just in permanent capital loss but also maintain a decent dividend yield. Once we receive the dividends, it is up to us how we want to deploy it to maximize our returns.
So in my case, I don’t really have to invest in REITs alone for high dividend yields. But it is difficult to find these companies in general and I would say that cherry picking your stocks is not easy. I was just very lucky to be able to buy them at the right prices.
Let’s all press on for the last month of 2018. Hwaiting!
Miss Niao xoxo.