Passive Income Update: July 14

With higher expenditure incurred during these two months (the upcoming expenditure update isn’t exactly going to make me bask in glory) and a reduction in our income streams (zero income household for about two weeks), it has proved to be rather difficult to fully maximise the benefits of the OCBC 360 account. Our balance has only increased by $5,000 to about $40,000 this month and that was after divesting one of my foreign currency deposits.

I had about $15,000 in a multi-currency account with the Bank Of China and it’s been there for about 3 years. Since it wasn’t really generating much interest, appreciation, or profits, I figured that the money would have been better utilised in an instrument with a 3% yield. I really can’t wait to get my hands on more cash these days. 🙂

So I promised myself to divest the holdings in our Philip Capital Sharebuilder plan if the STI breached the 3,500 mark. This re-balancing would also ensure a more conservative asset allocation in a booming market. And just when the STI Index looked to surge past that psychological barrier, it started tumbling down again and we are back near the often-seen 3,300 points.

This minor correction has also resulted in a fall in value of about $3,000 in my stock portfolio (compared to the previous month). Somewhat inevitable, since the share prices of stocks like Boustead, SIA Eng and MTQ has been soaring in previous months and their latest results did not, ahem, meet analyst expectations.

The good news is that if the price weakness persists, it might be time to purchase another few lots of some shares which I already hold. It has to be at least more attractive than a liquid and almost risk-free rate of 3% though.

And ironically, this brings me back to the situation of not having “enough” cash on hand. 😕

**********

Dividends received in July 14: $0

Dividends received YTD: $3152.70

**********

Details of my updated portfolio are shown below.

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

Stocks (As at 15th August 2014)

Stock Share Amt Share Price Valuation Dividend Est. Income
Vicom 4,000 $6.770 $27,080 $0.2250 $900.00
Boustead 9,000 $1.770 $15,930 $0.0700 $630.00
Spindex 24,000 $0.560 $13,440 $0.0180 $432.00
Wilmar 4,000 $3.190 $12,760 $0.0800 $320.00
Semb Corp 2,000 $5.300 $10,600 $0.1700 $340.00
OCBC 1,000 $10.200 $10,200 $0.3400 $340.00
First Reit 8,000 $1.230 $9,840 $0.0752 $601.60
PLife Reit 4,000 $2.350 $9,400 $0.1128 $451.20
Kingsmen 10,000 $0.925 $9,250 $0.0400 $400.00
SIA Eng 2,000 $4.570 $9,140 $0.2500 $500.00
MTQ 6,000 $1.470 $8,820 $0.0400 $240.00
Challenger 16,500 $0.490 $8,085 $0.0225 $371.25
Singtel 2,000 $3.910 $7,820 $0.1680 $336.00
ST Engg 2,000 $3.760 $7,520 $0.1500 $300.00
SGX 1,000 $7.210 $7,210 $0.2800 $280.00
LKH 10,000 $0.655 $6,550 $0.0300 $300.00
Super 4,000 $1.385 $5,540 $0.0900 $180.00
Total $179,185 $6,922.05

Others (As at 15th August 2014)

Asset Valuation Est. Income
OCBC 360 Account $40,000 $1,200
Philip Sharebuilder $29,662 $650
CIMB Star Saver $14,080 $110
Total $83,742 $1,960

Total Valuation = $262,927

Total Est. Annual Income = $8,882.05

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

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!

    7 thoughts on “Passive Income Update: July 14

    1. B

      Hi hww

      Can’t wait to invest more during price weakness. Definitely im monitoring a few quite closely now.

      1. My 15 HWW Post author

        Hi B,

        Care to share? If SIA Eng goes closer to $4, I might find it hard to resist. =)

    2. B

      I am looking at a couple of them actually. Sembcorp Ind, SIAENG and CMP. No need to go $4 maybe I will scoop them below $4.5 🙂

    3. Lazy Cat

      Noticed that you have some position on Super Group. Are you concern about their falling prices and poor financial results recently? I’m looking to buy into Super recently with the low prices now. Thanks.

      1. My 15 HWW Post author

        Hi Lazy Cat,

        You would probably have noticed that it’s also my smallest position. =p

        So I am not too concerned and I might re-evaluate it if it further weakens to see if it merits an extra investment.

        Basically, Super Group has been doing exceptionally well for the past decade and there’s many who extrapolated the growth forward. Recently, that didn’t materialise with a couple of poor results and thus, the shares tumbled. I nibbled at it a quarter ago since I thought the difficulties the company is facing could be temporary.

    4. JW

      Sembcorp Ind has been on my radar for awhile now.

      Looks attractive but I am concern with the:

      (i) the utilities business facing more competition
      (ii) market banking on them to deliver growth in India, which in my opinion is overly optimistic (coming from someone who has done work in India).

      As for SIA Eng, don’t you guys think 20x PE is expensive?

      1. My 15 HWW Post author

        Hi JW,

        For SIA Eng, I feel there’s some moat in their business (branding, safety concerns etc). There’s little/no debt and the earnings are predictable even if it doesn’t grow much from now on. If it drops near to $4, the PE would be in the high teens and that’s an attractive valuation for me. =)