Summary of August 2018 Transactions

The month of August is ending and it is time to reflect on my monthly stock transactions. This month, I have divested Suntec REIT. With the proceeds, I have stick to my original plan and invested them into Frasers Logistics and Industrial Trust. As such, the percentage of Frasers Logistics and Industrial Trust increases from 11% to 13% in terms of total invested amount of my stock portfolio. You can read more here ( What To Invest Now? ) on how I came to the decision to invest in Frasers Logistics and Industrial Trust instead of other REITs in my stock portfolio. Read More

The Hour Glass Benefits From Revived Demand From Chinese Shoppers

The Hour Glass has been suffering from the downtrend in the luxury goods market in both Hong Kong and China due to the clamp down of corruption from the Chinese government since 2015. This can be seen from the share price where it fell from its highest peak of S$0.88 to around S$0.71. And yes, I was vested prior to the plunge in share price.

The Hour Glass currently makes up 3% of my entire stock portfolio. Re-capping my reasons to stay invested:

  • Simple luxury watch business
  • Good management
  • Consistent dividend
  • Consistent profitability and performance (Revenue, Profits and NAV)
  • Low debt servicing ratio

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What To Invest Now?

Previously, I wrote about re-investing the money I gotten from the sale of Suntec REIT. This puts me in a dilemma as I do not know which REIT in my stock portfolio should I increase my position. Thus, the best way to find out is to compare their current dividend yield for better decision making.

The minimum criteria for my next REIT selection is that the current dividend yield should be better than Suntec REIT which currently yields 5.21% based on the current price of S$1.92.

From the below table that I have tabulated, ParkwayLife REIT is definitely out of the game as it current gives a dividend yield of 4.93%. I have also eliminated CapitaMall Trust as its dividend yield is 5.26% which is very much close to Suntec REIT’s dividend yield of 5.21%.

I have also eliminated OUE Hospitality Trust due to its poor 2Q2018 financial results. (Read more: OUE Hospitality Trust 2Q2018 Financial Results – Still Awaiting The Jewel) Read More