REITs Limited Time Offer!

The Federal Reserve announced that it will cut interest rates to zero as part of its emergency measure to protect the economy from the impact caused by the COVID-19 virus. I thought that this will give the stock market a boost but it didn’t. The stock market plunged further and this makes REITs certainly a lot cheaper at ridiculous prices I have never seen before.

Below are the stocks that I currently held in my stock portfolio. With the dip in stock prices, the current dividend yield had increased which makes certain REITs very attractive. Do expect further downside and do not expect recovery that soon. For long term dividend investors, this should not be much of an issue.

I will probably wait for the stock market to hold steady at current levels before deploying more tranches of my cash.

Stock Name Total Dividends Paid (Cents) (FY19) Closing Price (18th March 2020) Current Dividend Yield (%)
OUE Commercial REIT 3.31 S$0.32 10.34%
Frasers Commercial Trust 9.60 S$1.12 8.57%
Frasers Logistics and Industrial Trust 7.00 S$0.82 8.54%
SPH REIT 5.60 S$0.74 7.57%
ComfortDelgro 9.79 S$1.55 6.32%
CapitaMall Trust 11.97 S$1.83 6.54%
Mapletree Commercial Trust 9.14 S$1.77 5.16%
Parkway Life REIT 13.19 S$2.81 4.69%
ST Engineering 15 S$3.30 4.55%

Straits Times Index Fell 6.03% Due to Oil Price War

Amidst the COVID-19 outbreak which has caused much volatility in the stock market, the stock market plunged further today on the news of Riyadh (Saudi Arabia) slashing crude for April delivery prices. This had sparked the massive sell off of oil related stocks.

The Straits Times Index (STI) took a beating and fell as much as 6.03%. With the massive sell off, this opens up an opportunity in the current stock market.

Below are the stocks that I currently held in my stock portfolio. With the dip in stock prices, the current dividend yield has increased which makes certain REITs attractive. For investors who have been hoping for a dividend yield of at least 5% and above, this is probably the moment you are waiting for.

Stock Name Total Dividends Paid (Cents) (FY19) Closing Price (9th March 2020) Current Dividend Yield (%)
OUE Commercial REIT 3.31 S$0.44 7.52%
Frasers Commercial Trust 9.60 S$1.59 6.04%
Frasers Logistics and Industrial Trust 7.00 S$1.20 5.83%
SPH REIT 5.60 S$0.97 5.77%
ComfortDelgro 9.79 S$1.81 5.41%
CapitaMall Trust 11.97 S$2.39 5.01%
Mapletree Commercial Trust 9.14 S$2.21 4.14%
Parkway Life REIT 13.19 S$3.46 3.81%
ST Engineering 15 S$4.03 3.72%

ST Engineering – Buy on Downtrend?

While prices of most stocks have gone up, the stock price of ST Engineering has gone down recently. There has been discussions on ST Engineering on whether one should buy at current price of S$3.19, whether will the stock fall lower and if there is anything wrong with ST Engineering which resulted in the decline in share price. Based on technical analysis, Singapore Technologies Engineering is currently on a downtrend. Read More