Thursday, 7 April 2016

Dividend Knight Portfolio Update (April 2016) - Budget 2016 Goodies!


No.
Company
No. of Shares
1.
AIMS AMP Capital REIT
30, 000
2.
Starhub
10, 000
3.
Singtel
8, 000
4.
Mapletree Logistics Trust
25, 365
5.
CACHE Logistics Trust
29, 000
6.
Frasers CentrePoint Trust
12, 000
7.
DBS
1, 500
8.
SATS
4, 000
9.
CapitaLand Mall Trust
7, 000
10.
Raffles Medical Group
3, 000
11.
ParkwayLife REIT
5, 000
12.
MGCCT
12, 000
13.
Keppel DC REIT
10, 000
14.
Suntec REIT
6, 000
15.
OCBC
900
16.
UOB
400
17.
Sheng Siong
7, 000
18.
VICOM
500
19.
Mapletree Commercial Trust
2, 032

Dividends received in April 2016: S$0

Total dividends received since Jan 2016: S$3,219.50

Average dividends per month: S$268.29

Average dividends per day: S$8.82

Total portfolio market value: S$316, 000

For the month of April, I did not receive any dividends from my portfolio. Continuing on my 2016 primary investment objective of building up my bank holdings, I accumulated more DBS since its valuation is relatively cheaper than UOB and OCBC at the moment. The accumulation was done over 2 tranches - once at $15 and another at $15.30. With this latest round of fresh fund injection, approximately 12% of my portfolio allocation is in the 3 local banks.


Budget 2016 Goodies for Dividend Knight's Portfolio:

During the Budget 2016 speech, our Minister of Finance unveiled an impressive video on the proposed 'Jurong Innovation District' (JID). In my opinion, this is going to be the 'Silicon Valley' of Singapore. Combined with the future High-Speed Rail terminal and new Science Centre, Jurong is shaping up to be new CBD of Singapore. 

With 3 shopping malls (Westgate, JCube & IMM) within close proximity to the Jurong East MRT and bus interchange, CapitaLand Mall Trust stands to reap sustained benefits from increased business activities in this regional hub over the next decade. The first phase of the JID is slated to be completed in 2022.

There is a $1 billion top-up to the Changi Airport Development fund which will be channelled into the Terminal 5 expansion - projected to be operational by 2020. In my opinion, Changi Airport has always been the pride of Singapore and the government seems determined to keep it that way.
Terminals 4 and 5 will double the operational capacity of Changi Airport when they are fully operational. These additions could be a massive tailwind for SATS as Singapore strengthen her position as an aviation hub in the region. Currently, SATS handles about 80% of all scheduled flights at Changi Airport.

By partnering one another, local companies can leverage on their unique strengths & expertise to offer new services & products and even spearhead them onto the global market. The government will be developing bespoke 'Road Maps' for 20 sectors with the aim of increasing collaboration and innovation between companies. Perhaps taking cue from this future trend, Starhub has been busy striking up partnerships. It is taking a 9.1% stake in movie producer, MM2 Asia, pending shareholders' approval. This strategic move will strengthen Starhub's local content production/delivery & further differentiate its cable-tv offerings from rivals.



SPH and StarHub signed a MOU to exploit opportunities in converged media space. Starhub has also teamed up with China Mobile, the world's largest telecommunications operator by market capitalisation, to create more business opportunities.The partnership involves cooperation on global roaming, information sharing and to create new business opportunities relating to innovation.

The government wants to build a more vibrant start-up culture with a focus on the robotics, precision engineering and tech industry. SingTel's recent investments already ticked these 2 boxes. Its venture capital subsidiary, Singtel Innov8 has increased its stake in HOPE Technik from 18.7% to 21.3%. HOPE Technik is a Singapore-based engineering company which provides technically-sophisticated solutions to commercial & government customers.
 
The 'Red Rhino' mini-fire engine used by the SCDF is built by HOPE Technik. Besides HOPE Technik, Singtel Innov8 has a respectable track record of funding successful digital/e-commerce/tech/media start-ups. Some of them were eventually listed on NASDAQ. Singtel seems to be morphing slowly but steadily from a traditional Telco into a tech company. I believe the addition of these alternative revenue streams will help Singtel to defend itself against the imminent 4th Telco threat.

In conclusion, it is indeed heartening to see some of the companies in my portfolio pulling in the same direction as the Budget 2016 stipulated. This shows that the management team of these companies have the vision to stay ahead of the curve and their interests are aligned with the nation's.


Always Dream Bigger
DK

8 comments:

  1. Hi there,
    I think it would be good to see the performance of the underlying securities as well, what paper gain/loss did you incur and what is the volatility versus the dividend payout ?

    ReplyDelete
  2. Hi spurkusius,

    Thanks for the suggestion. I shall include my paper gains/losses in my next update. Stay tune!:)

    ReplyDelete
  3. Hi DK

    You had a very good and solid portfolio.

    And the buying of banks this year did make a good trade-off.

    ReplyDelete
    Replies
    1. Hi B,

      Thanks for the compliment. Channelling my funds into banks has been reaping decent returns so far.

      Delete
  4. Hi DK,

    I am trying to slowly accumulate DBS as well. Takes a while with each 100 shares still costing 1500%.

    ReplyDelete
    Replies
    1. Hi Trooper,

      Slow and steady win the race. All the best!

      Delete
  5. Hi DK, dont mind sharing the percentage of your reits vs non reits, your reits seems to be over 50% of your portfollio?

    ReplyDelete
    Replies
    1. Hi Justin,

      My REITs allocation is around 52.5% of overall portfolio value.

      Delete