Monday 10 September 2018

FY2018 Q3 Dividends

3Q 2018 is a pleasant quarter for me as all of my companies paid its dividend. 

Yes, that's right all.

And that makes me smile.

Not forgetting AA REIT in September and FEO in July. 


But I guess they're all good doses of panadol for now as my portfolio is taking a beating from Mr Market. 


Having that said, I believe most readers would easily identify and knows that I'm very much looking forward to receiving the payout from SingTel in mid-August. The payout received from SingTel is the largest single payout I've ever received till date and stands at almost 30% of my entire dividend received in 2018.

I've been increasing my exposure significantly to SingTel, from a small position to a really big one in terms of my portfolio. But to be fair, 1,000 shares of SingTel means totally nothing to many. 

But for a pico-sized portfolio like mine, it is actually something. In fact, something significant. And for the 1,000 shares I'm holding, I've received $107.00 from them. 

With the price slipping down once again, I'm accumulated a little more of SingTel today at 3.09.

I'm sure some readers would wonder if I'm comfortable having such a big fraction of my portfolio tied to a single stock that is constantly making a new low.

All I can say is, I hold no crystal ball. 
But, I'm fairly comfortable with my exposure to SingTel. 

And I would likely accumulate more. 

Read: Portfolio - May 2018

Moving on, aside the dividends received from SingTel. I had trimmed what used to be my largest holding, CDG to one that is free. 

Read: Free Shares from CDG

With that in mind, I've received significantly lesser dividends from them as projected due to the reduced exposure. However, in the recent days, ComfortDelGro price is seen coming down again. 

Should the price continue to fall once again, I believe we will be able to see some value surfacing for CDG. When that happens, provided if I have sufficient funds, I'll be more that glad to make my investment in CDG a more significant one again. 

With that in mind, the 100 free shares account to only $4.35 of dividends received this time round. 

Indeed pathetic. But it's free.. why not? 
2 more Ala-carte Fillet-O-Fish on the set to fill my tummy!  

In 3Q 2018, this is also the first time I'm receiving dividends from the ever-falling Far East Orchard, a property developer that I'm bought into back in October 2017. 

Read: Portfolio Update - Far East Orchard

FEO is a mainly a hotel developer and they have a lower ROA due to the type and nature of the asset. But aside from being a hotel developer, FEO do have other developments as well. Residential projects such as Harbourfront Balmain in Australia or RiverTree Residences in District 28 of Singapore.

As opposed to companies like CDG/SingTel with a healthy cash flow, FEO being a property developer, their earnings are lumpy and only would be recognized upon selling the units out. 

Therefore, it is a different game as compared to companies mentioned above. But as much as dividends are of concern, it is always good to know that the dividends that we received are sustainable. 

Which will brings me to the only question for FEO on whether the 6 cents dividend paid are sustainable. 

In order for dividends to sustain, the company should generate sufficient cash flow for which dividends could be paid. Else, the company will only be paying their shareholders out of their pocket, which is very unhealthy to the company's balance sheet. 

To simplify it. If I'm earning $1,000 and spending $2,000. The only means for me to do so is to either to use my savings (retained earnings) or to take up a loan in order to spend that additional $1,000.

Hence, to pay the dividend off with their earnings, a sufficient and healthy cash flow is neccessary. This will brings me to the development of their UK Student Hostel, which I view that it would creates an additional source of income stream for FEO to make dividend more affordable for them.

Looking back, it had been a couple of years that FEO has timely development and sales to cushion that 6 cents of dividend paid to its shareholder. 

With that in mind, I'll be looking closely to the student hostel's project while waiting for the value of FEO to surfaces. Meanwhile, the dividend should serves as a dose of pandol to temporarily ease the headache. 

At $1.30, FEO P/B ratio stands at 0.447. It's just like buying a SGD 1 coin with SGD 0.447!

But nothing too profound as we will never know when will the price of an asset moves close to their value. All I know that, I'm fine for now and we must have the patience to let time unlock the value for such assets. 

Some vote of confidence from Mr Ngs?

 Read more HERE.

The other contributors to the dividend of 3Q 2018 received are AA REIT, SGR and SSB. 

Not forgetting Wilmar, which is a very amazing company that I'm forward very much to accumulating more shares from them. However, investors of Wilmar must be well-reminded of the company Wilmar is and we should not be throwing in a very big ticket to anticipate that we will be receiving a very big fat dividend from them.

Read: Analysis on Wilmar

Enough of typing for now... It's time for the quarterly FOF check!

Total dividends received in Q3 = $221.82
Total dividends received in 2018 = $357.74
Average dividends/months = $29.81

Fillet-O-Fish check: 71 !!
FOF/month : 6 !!

Now... I can finally fill myself for 2 complete days of Fillet-O-Fish meal from morning till night!  

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