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)

Both Mapletree Commercial Trust and Frasers Commercial Trust Distribution Per Unit (“DPU”) growth were flat at 2.23 cents (1Q FY18/19) and 2.40 cents (3QFY18) respectively when compared with the same quarter results in the last financial year.

The sole survivor and winner seems to be Frasers Logistics and Industrial Trust with a current dividend yield of 6.88% based on their current price of S$1.05. The manager has also released a good set of financial results. (Read more: Frasers Logistics and Industrial Trust DPU Jumps 2.9% )

Of course, there will be a risk of results deteriorating over next few quarters as the future is unpredictable but I think Frasers Logistics and Industrial Trust is my best bet now!

Stock Total Dividends Paid (cents) (FY17) Current Price Current Dividend Yield Portfolio %
Frasers Logistics and Industrial Trust 7.22 S$1.05 6.88% 11%
CapitaMall Trust 11.51 S$2.19 5.26% 11%
Mapletree Commercial Trust 9.04 S$1.57 5.76% 11%
Suntec REIT 10.005 S$1.92 5.21% 2%
Frasers Commercial Trust 9.82 S$1.38 7.12% 2%
ParkwayLife REIT 13.35 S$2.71 4.93% 12%
OUE Hospitality Trust 5.14 S$0.76 6.76% 4%

One thought to “What To Invest Now?”

  1. Hi Sweetretirement,
    With suntec reit gone, would you consider introducing new reit into your portfolio i.e. crct, aims to name a few, that fulfills your criteria of divd yield? Instead of adding to your current. What’s your take…?

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