Passive Income Update: August 2015

The stock market has been moving sideways for the past month and is somewhat muted, especially if we compare it against the previous month. The much anticipated General Election and the mooted Fed rate hike has come and gone. And even though the PAP won big and there was eventually no rate hike in September, it’s still not enough to trigger the Straits Times Index to go back up to the 3,000 level.

However, I have been really active lately, especially during end Aug and the start of Sep. All the shares of Spindex was sold on 24 Aug as I tried to lock in some profits. At the price of 60 cents, this is a two-bagger in the bag. SGX was also sold early in the month @$7.45 as I tried to reduce the number of stocks in my portfolio. Part of the proceeds were used to purchase 2,500 shares of STI ETF @$3.01.

I think some readers would be shocked that I am actually selling some shares during this correction. Admittedly, I might have overestimated my risk tolerance with the amount I had invested and getting some money out from stocks does help to soothe battered emotions. This amount of money would also be useful in purchasing some significant amounts of SSBs over the next few months.

And if indeed the correction continues, I will continue firing some bullets at the STI ETF to increase the size of the portfolio. And yes, I will definitely trim my holdings too once/when oil prices recover.

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Dividends received in August 2015: $1,269.60

Vicom: $350

MTQ: $200

Boustead: $180

First Reit: $165.60

M1:$140

PLife Reit: $134

Wilmar: $100

Dividends received YTD: $5,675

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Stocks (As at 18th September 2015)

Stock Amount Price Valuation Dividend Est. Income
Vicom 4,000 $6.000 $24,000 $0.2700 $1,080.00
Kingsmen 17,000 $0.795 $13,515 $0.0400 $680.00
STI ETF 4,500 $2.930 $13,185 $0.1000 $450.00
ST Engg 4,000 $2.970 $11,880 $0.1500 $600.00
OCBC 1,200 $9.000 $10,800 $0.3600 $432.00
Wilmar 4,000 $2.650 $10,600 $0.0750 $300.00
Semb Corp 3,000 $3.500 $10,500 $0.1600 $480.00
First Reit 8,000 $1.275 $10,200 $0.0805 $644.00
PLife Reit 4,000 $2.300 $9,200 $0.1152 $460.80
Dairy Farm 900 $8.580 $7,722 $0.3200 $288.00
MCT 6,000 $1.285 $7,710 $0.0800 $480.00
Boustead 9,000 $0.815 $7,335 $0.0400 $360.00
Genting 8,000 $0.755 $6,040 $0.0100 $80.00
M1 2,000 $3.010 $6,020 $0.1890 $378.00
Jard C&C 200 $29.290 $5,858 $1.1093 $221.86
MTQ 10,000 $0.545 $5,450 $0.0400 $400.00
LKH 10,000 $0.540 $5,400 $0.0300 $300.00
Super Grp 4,000 $0.830 $3,320 $0.0310 $124.00
Bou Proj 2,700 $0.725 $1,958 $0.0000 $0.00
Total $170,693 $7,758.66

Others (As at 18th September 2015)

Asset Valuation Est. Income
OCBC 360 Account $60,000 $1,320
FCL 3.65% Bonds $21,063 $767
Total $81,063 $2,087 

Total Valuation = $251,756

Total Est. Annual Income = $9,845.66

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    10 thoughts on “Passive Income Update: August 2015

    1. B

      Hi 15hww

      I see that you are slowly going the more passive way of holding ETF (as compared to individual stock) together with some bonds.

      I think that is a very good and commendable approach, especially since it is much easier to monitor and make decisions and one do not need to commit to having the fallacy of picking the wrong stocks or following some hot tips from gurus.

      I guess once I get to an older stage where I want more time away from the market, I will do exactly the same as what you will be doing.

      1. My 15 HWW Post author

        Hi B,

        Good observation! Just too bad that I didn’t do this half a year ago when the market was on a high. Would have managed to lock in some tidy profits then. Oh well…

    2. Mich

      Hello 15hww,

      When you mentioned “Part of the proceeds were used to purchase 2,500 shares of STI ETF @$3.01.” Am I correct to understand that you mean purchasing STI ETF (ES3) through your normal share trading account?

      Curious about ETF recently but have never tried them, understand that we can also purchase them through Banks.

      1. My 15 HWW Post author

        Hi Mich,

        Yes, it is the SPDR STI ETF through my trading account.

        I honestly don’t think you can purchase them through banks. Unless you’re saying you purchase through a trading account with a bank, then yes.

    3. Freddy

      Hihi
      I notice U have shifted some stocks
      Like Singtel, ShengShiong
      From yur Dividend Warrior
      Portfolio
      Don’t know whether it is a good bet
      On dividend play when these stocks
      Are subjected to up n down swing of the market.
      I notice U did not add Preference Shs
      In yur portfolio n Why?
      Genting, Ocbc etc
      As these shs approaches coupon
      Payment date, general they are adjusted to the accrued interest
      Which is the dirty price…
      At the least no heart attack

      1. My 15 HWW Post author

        Hi Freddy,

        I am not a big fan of preference shares. In market downturns as seen in GFC, preference shares get pummelled quite badly compared to bonds. I personally would trade the extra 1% interest for more stability in corporate bonds and maybe even an extra 1% for government bonds.

    4. Frugal Daddy

      Hi 15hww

      Doing my last reading before I have no internet access. I would love to go through in details with you on how to maximum our precious time and money with the minimum risk tolerance (Yes, there is such thing). However, we will need to find the “formula”.

      Meanwhile, i believe you are aiming to slowly fire your sti etf, and if you are divesting some shares, aiming a profitable price? I can see you are in control and you are 1 of the wiser friends I have. I know you will do the right thing. haha.

      Stay original. See you when I am back!

      1. My 15 HWW Post author

        Hi Frugal Daddy,

        I think a permanent portfolio would yield a good return with minimal volatility. Maybe that’s a good formula?

        Wise? You flatter me. I think I am still finding my feet, especially in the market. But of course, I hope I am doing the “right” thing.

        Have a great trip!

    5. Dora

      Hi!
      I am a new reader – find your website really interesting and informative! Great job. I just have 2 qns (somewhat unrelated to the article).

      Is the above portfolio solely Mr 15hww’s? Or is it tgt w mrs 15hww? If the latter, does she provide any inputs to the decision making?

      1. My 15 HWW Post author

        Hi Dora,

        Thanks for your kind comments.

        The portfolio is a combination of my and the Mrs’ hard work over the past decade and yes, she does share her views with me. Although I might not always act on them, she does have veto powers. After all, some of the stocks are parked inside her CDP account.