Passive Income Update: February 14

The STI Index has somewhat stabilised in the past few weeks, hovering around the 3,100 mark. Although the recent purchases like OCBC and ST Engg are still in the red, there’s been some pretty good gains from shares like Boustead. With another “small” purchase made a few days ago, the portfolio has also breached the $200k mark.

Purchasing >$20,000 worth of stock within the first three months of the year does seem aggressive. But I haven’t suddenly turned bullish since my asset allocation has remained somewhat stable, with 70% in equities. It’s a buying spree mitigated by some special circumstances.

My ILP with AIA “matured” after 8 years (I will talk about this mistake in a subsequent post), netting me almost $9k in cash. Furthermore, March is the month when I receive my performance bonus and like most, I like to “reward” myself during this period. And few things make me feel happier than increasing my potential passive income. =p

In case you’re wondering what I have bought, it’s SGX @$6.73. I have been eyeing this stock for a while already. While it appears expensive with PE>20, earnings are likely to be stable with some potential for growth (more people entering the local market, maybe?). Dividend mapping also played a part in this purchase as I would like some of the fees I have been paying to SGX to come back to me as dividends.

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Dividends received in February 14 : $270.40

First Reit: $157.60

PLife Reit: $112.80

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Details of my updated portfolio are shown below.

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Stocks (As at 17th March 2014)

Stock Share Amt Share Price Valuation Dividend Est. Income
Vicom 4,000 $5.900 $23,600 $0.1820 $728.00
Boustead 9,000 $1.845 $16,605 $0.0700 $630.00
Wilmar 4,000 $3.450 $13,800 $0.0500 $200.00
Spindex 24,000 $0.475 $11,400 $0.0180 $432.00
Semb Corp 2,000 $5.230 $10,460 $0.1500 $300.00
Challenger 16,500 $0.595 $9,818 $0.0225 $371.25
SIA Eng 2,000 $4.830 $9,660 $0.2200 $440.00
PLife Reit 4,000 $2.380 $9,520 $0.1031 $412.40
OCBC 1,000 $9.350 $9,350 $0.3300 $330.00
Kingsmen 10,000 $0.925 $9,250 $0.0400 $400.00
First Reit 8,000 $1.070 $8,560 $0.0726 $580.80
MTQ 5,000 $1.670 $8,350 $0.0450 $225.00
ST Engg 2,000 $3.790 $7,580 $0.1680 $336.00
LKH 10,000 $0.710 $7,100 $0.0450 $450.00
Singtel 2,000 $3.540 $7,080 $0.1680 $336.00
SGX 1,000 $6.730 $6,730 $0.2800 $280.00
Total $168,863 $6,451.45

Others (As at 17th March 2014)

Asset Valuation Est. Income
Philip Sharebuilder $24,008 $550
CIMB Star Saver $14,080 $110
Total $38,088 $660

Total Valuation = $206,951

Total Est. Income = $7,111.45

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

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3 thoughts on “Passive Income Update: February 14

    1. My 15 HWW Post author

      Hi B,

      SGX appears fairly priced at this point. It’s a good business (monopoly with negligible capex) with quality and possibly growing earnings. Given a choice between other monopolies like SPH or Singpost, SGX seems more appealing.

      I am more bullish than bearish in the middle term so I do anticipate more people getting into stocks for the next few years. So it helps with a significant part of SGX’s revenues still coming from the securities avenue.

  1. Henry Tiong

    SGX thrives on transactional volumes. Singapore’s status as a regional financial hub will be important to attract listings and settlement-related businesses – be it FX or more locally market developments such as electricity futures.

    Dividends are decent from yield perspective, more importantly, question to ask is: can the business generate enough cash to sustain the dividends?

    So far, the answer is yes, if you compare dividend to earnings. Operating cash flows though seems to suggest dividends are higher, so may be draining cash a bit to maintain high payout.

    That might be worth a consideration for entry price, otherwise great business. I also love the fact it has no interest-bearing debts.