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?

Summary of April 2019 Transactions

My stock portfolio remained unchanged for the month of April as I did not make any buy or sell transactions this month other than the regular purchase of setting aside a portion of my monthly salary to purchase Singapore Savings Bonds. It seems to have become a habit and Singapore Savings Bonds currently make up 18% of my stock portfolio.

My expenses went up this month due to renewal of car insurance, road tax, car servicing and changing of my car tires. Despite spending so much this month, I am glad my finances are doing well due to good saving habits.

This month, I have added SPH Reit to my wife’s stock portfolio. SPH Reit now makes up 9% of her stock portfolio. Now, she has one new Reit to pay her quarterly dividends.

I have done a screening and there are not many Reits that offers above 5% dividend yield at the moment as the recent bull run seems to drive most stock prices up. Since she is piling too much cash in the bank right now, I decided to invest little bit of her cash into SPH Reit for the higher yield.

You can read more about my personal analysis of SPH Reit below.

My Personal Analysis of SPH REIT

Reviewing My Personal Analysis of SPH REIT

Last but not least, I will just like to say how wonderful it is to both of us, as we now enjoy regular payout of dividends which can help us in terms of expenses ranging from household, children and personal spending.

This is the power of dividend investing!

Summary of March 2019 Transactions

Earlier this month, I have made the switch to open electricity retailer which is Sembcorp. This should slash off several dollars from my electricity bill over the next few months.

As usual, I have made no buy or sell transactions this month. My holdings in terms of percentage of Singapore Savings Bonds crept up from 17% to 18% of my stock portfolio. I have been consistently purchasing Singapore Savings Bonds every month as I felt there are several benefits of doing so right now. This month, I thought of dumping a portion of my cash into CIMB fixed deposits but realize Singapore Savings Bonds offers almost the same yield. You can read more of the comparison here (Read more: CIMB Fixed Deposit Promotion Makes Your Money Work, Not You! ).

Next month, if Singapore Savings Bonds still offers the same yield, I will allocate a larger portion of cash to purchase more of Singapore Savings Bonds since it does not make sense for 44% of my cash sitting in the bank right now, earning a petite interest.

If you have followed my blog, I have been eyeing on SPH REIT. The market seems bullish this month and most share price of REITs went up slightly including those in my stock portfolio. Based on a distribution of 5.54 cents in FY2018 and the price of S$1.03 (as of 22 Feb 2019), this translates to a dividend yield of 5.38%. The share price of SPH REIT now stood at S$1.05 and is deemed unattractive to me since dividend yield is lower.

That is all the updates I have for March!