Summary of June 2019 Transactions

This is my favorite month of the year. Earlier this month, I took a short break from work and went on a short vacation to Bangkok. Things seems to be getting slightly expensive in Bangkok as compared to a few years ago. However, I still managed to get a few good deals from Bangkok’s Chatuchak weekend market.

This month, both my wife and myself have received our performance bonus from my company. While others spent their bonus monies on new clothes, branded bags or reward themselves with an expensive overseas trip, I spent my bonus on shopping for dividend stocks. My wife have applied for Astrea V Bonds and gotten a fifty percent allocation while I finally added SPH Reit to my stock portfolio. SPH REIT currently makes up 11% of my stock portfolio. With the recent price run up of most Singapore REITs, it is really tough to find one that give you 5% to 6% returns a year. Read More

Only Allocated Fifty Percent of Astrea V Bonds

This is just an update to Astrea V Bonds. The IPO application results of Astrea V Bonds caught me by surprise. In my previous post ( Astrea V 3.85% Class A-1 Secured Bonds ), I read that all applications of less than S$50,000 will be allocated in full or in part. However that was not the case. My wife only got 50% of what she applied.

Below is a summary of the Astrea V Bonds application results.

  • Retail offer of S$180 million Class A-1 Bonds 4.5 times subscribed. Nearly S$820 million received from 30,816 valid applicants.
  • 75% of bonds allocated to all valid applications of less than S$50,000. Each valid applicant of less than S$50,000 received some allocation.
  • Applicants who applied for S$50,000 or more were balloted. Successful balloted applications were allocated in part.
  • Overall issuance of Astrea V Private Equity (“PE”) Bonds 6.7 times subscribed. Total subscription of US$4.0 billion across all three classes of bonds.

Summary of May 2019 Transactions

Besides the regular purchase of Singapore Savings Bonds, I have not bought nor sold any stocks this month. I did a recent analysis of Manulife US REIT after the results from my last screening for dividend stocks showed that Manulife US REIT has a dividend yield of 8.736%. I almost jumped into this stock. However, with the recent price run up, I computed the current dividend yield to be 6.63% based on the current share price of US$0.84 and this halted my decision.

I personally felt that there is not enough margin of safety to enter Manulife US REIT at the current price of US$0.84. My biggest concern is that Manulife US REIT is a pure US play, any hiccups or announcement in the US economy will hit Manulife US REIT hard. We all know any decision or announcement from Trump throws the stock market into turbulence. Frasers Commercial Trust seems to be a better play with similar dividend yield at 6.53%. Thus, I decided to keep Manulife US REIT in my watchlist. I probably may settle for SPH REIT given its stability even though the dividend yield is lower at less than 6%.

Dividends have came pouring in the last week of May. I have collected dividends from Parkway Life REIT, Frasers Commercial Trust, Kingsmen Creatives, CapitaMall Trust, Mapletree Commercial Trust which all goes into my war chest for my next purchase.

What shall I buy next?