My Sweet Retirement - Page 2 of 297 - Personal views on stock investment, money management, life philosophy

The total dividends that I have collected in the year 2020 is S$15,532.60. This is an increase of 47.26% or S$4,985.20 as compared to the amount of S$10,547.40 that I have collected in the year 2019. This year, I probably struck the jackpot as the sudden increase in dividends collected was due to a special dividend payout by Convenience Retail Asia.

What is Dividend Investing?

If you have followed my blog long enough, you have probably read that I am a dividend investor. This means that I buy stocks such as REITs that consistently pay dividends. Reinvesting the collected dividends further compounds the amount collected.

I consider a stock to be an excellent dividend stock if

a) Able to grow its dividend payout year on year (y-o-y)

b) Increase its share price due to investor’s confidence in the stock

c) Consistent payout in dividends

d) Pay special dividends time to time

How To Track Your Dividends

You may wonder how I track my dividends since I am holding so many stocks in my portfolio. Since May 2016, I am using Stocks Café to keep track of my dividends as it automatically tracks dividend payouts and there is no need for manual entry. This has saved me a lot of time.

Projected Dividends Collected In 2021

Stocks Café has this feature that project your future dividends based on the following assumptions:

a) You will hold the same stocks and amounts until the end of the year, and
b) all stocks will give the same amount of dividends, on the same ExDate, as the previous year

Based on the projection, I will collect S$13,973.58 worth of dividends in 2021. This might not be the real case since companies do not pay special dividends every year. Nevertheless, we shall see how much dividends I will collected at the end of 2021.

Frasers Logistics and Commercial Trust has announced their FY20 full year results on 6th November 2020. This post came late as I was too busy with work and only realize Frasers Logistics and Commercial Trust had announce their full year results last month. Since Frasers Logistics and Commercial Trust makes up a major position in my stock portfolio, I am very interested to see how it has performed in FY20, the year of COVID-19 pandemic.

Gross revenue increased 53.0% to A$332.0 million and Distributable Income increased 48.8% to A$201.1 million. A full year DPU of 7.12 Singapore cents was paid in FY20 which was an increase of 1.7% as compared to FY19. Solid performance despite the COVID-19 pandemic!

Frasers Logistics and Commercial Trust FY20 Full Year Results

Net Property Income increased by 46.2% as compared to FY19. The year-on-year (“y-o-y”) increases were contributed by the merger, German properties acquisition, and the FY2019 and FY2020 acquisitions.

	FY20 (A$’000)	FY19 (A$’000)	Change
Gross Revenue	332,029	217,076	53.0%
Net Property Income	258,335	176,641	46.2%
Distributable Income	201,080	135,098	48.8%
Distribution Per Unit (“DPU”) (Singapore cents)	7.12	7.00	1.7%

Debt

Gearing ratio stood at 37.4%. There is still a debt headroom of S$1,651 million prior to reaching the 50.0% aggregate regulatory leverage limit.

Occupancy

Frasers Logistics and Commercial Trust portfolio stood stable with an occupancy rate of 97.5% and a weighted average lease expiry (“WALE”) of 4.9 years. Lease expiries represent 7.9% of gross rental income for the financial year ending 30 September 2021.

Current Dividend Yield

Now the question you may want to ask is if the current dividend yield still attractive?

Based on the full year distribution per unit of 7.2 Singapore cents and share price of S$1.43, this translate to a current dividend yield of 5.03%.

Summary

Frasers Logistics and Commercial Trust pays out its DPU in AUD. This means it is subjected to foreign exchange risk whereby dividend collect in SGD tends to be impacted.

Since March 2020, AUD starts to strengthen. As of today, the current exchange rate for AUD to SGD is 1 AUD to 1.02 SGD. This means means more dividends for investors when converted from AUD to SGD.

I have also noticed that Mr. Robert Wallace, Chief Executive Officer of the REIT Manager is good at recycling capital by divesting assets when valuation goes up and then reinvest the capital into new assets to continue growing them. I noticed a similar strategy that is used to by adopted by CapitaLand Commercial Trust.

Frasers Logistics and Commercial Trust has certainly brought value to investors by growing its dividend payout y-o-y and the appreciation of its share price has added value as well.

Well done!