Passive Income Update: January 14

It’s awkward, isn’t it? The economic outlook for the world (or maybe just the U.S.) is supposed to have improved significantly. That’s why we have tapering, the monthly fiscal injection from the Federal Reserve for the past few years being slowly reduced. Good economic news should equate to good news for the stock market, eh?

Unfortunately (or who knows, maybe fortunately?), this wasn’t read that way by most market watchers. With liquidity perceived to be drying up (heck, there’s still $65 billion sloshing around every month), there are fears that interest rates could shoot up and that funds might leave emerging markets. With property prices slowly beginning its slow descend from a frothy top, these news have sent the local index plummeting at the start of 2014.

Alas, this also presented some buying opportunities for me. With low interest rates set to rise, I firmly believe that banks could increase their revenues by earning a higher spread on their lendings. With negativity surrounding OCBC’s potential purchase of Wing Hang bank, OCBC’s stock price was battered pretty badly and I duly bought 1 lot @$9.58.

That was about a week before Chinese New Year and as the bloodletting continued, I also fired a second bullet at ST Engg with 2 lots @3.75. This is a fairly defensive business that also deals with the business of defence (i.e. production of our very own SAR 21). Notably, almost 40% of their customers are in the defence sector. Let’s just say that yours truly believes that countries’ investments in defence could shoot up in the medium to long term as world inequality exacerbates.

**********

Dividends received in January 14 : $236

Singtel: $136

MTQ Corp: $100

**********

Details of my updated portfolio are shown below.

====================

Stocks (As at 17th February 2014)

Stock Share Amt Share Price Valuation Dividend Est. Income
Vicom 4,000 $5.780 $23,120 $0.1820 $728.00
Boustead 9,000 $1.725 $15,525 $0.0700 $630.00
Wilmar 4,000 $3.250 $13,000 $0.0500 $200.00
Spindex 24,000 $0.465 $11,160 $0.0180 $432.00
Semb Corp 2,000 $5.370 $10,740 $0.1500 $300.00
Challenger 16,500 $0.590 $9,735 $0.0225 $371.25
Kingsmen 10,000 $0.950 $9,500 $0.0400 $400.00
OCBC 1,000 $9.460 $9,460 $0.3300 $330.00
SIA Eng 2,000 $4.700 $9,400 $0.2200 $440.00
PLife Reit 4,000 $2.340 $9,360 $0.1031 $412.40
MTQ 5,000 $1.665 $8,325 $0.0450 $225.00
First Reit 8,000 $1.040 $8,320 $0.0726 $580.80
ST Engg 2,000 $3.800 $7,600 $0.1680 $336.00
Singtel 2,000 $3.590 $7,180 $0.1680 $336.00
LKH 10,000 $0.680 $6,800 $0.0450 $450.00
Total $159,225 $6,171.45

Others (As at 17th February 2014)

Asset Valuation Est. Income
Philip Sharebuilder $24,299 $550
CIMB Star Saver $14,080 $110
   
Total $38,379 $660

Total Valuation = $197,604

Total Est. Income = $6,831.45

 ====================

Do refer to my first monthly update if you would like some additional background to most of my purchases and here for previous updates.

Share!

    2 thoughts on “Passive Income Update: January 14

    1. B

      Hi Hww

      Thats quite a purchase from you in the month of Jan somewhere in the 16K range. I think our portfolio has been enhanced this month from the help from Vicom 😉

      1. My 15 HWW Post author

        Hi B,

        Yep, they were two big purchases within a month and I caught myself 2nd guessing my decisions then as the market kept on tumbling.

        The full value of Vicom is slowly being realised (if it’s not fully realised @$5.80/share!).