The following content was recently published on Paul Low's blog and is republished with permission. Paul says he is in his late 30s, and divides his time running his own business and running family errands. He is an accredited investor and likes to buy and hold good stocks for dividends. Recently, he was delighted that his son gained entry into the Gifted Education Programme in Nanyang Primary School.


armouring2.14Cable manufacturing operations at Tai Sin Electric's factory in Gul Crescent, Singapore. NextInsight file photo.Stocks in my 2015 portfolio:

1) ST Engineering

2) SingReinsurance

3) TCIL

4) Lee Metal

5) Hupsteel

6) Noel Gifts

7) Nam Lee

8) Stamford Land

9) Tai Sin Electric 

 


Features of this portfolio:

1) Dividends every month, except Feb, April and July. Four quadrants of the year are fixed up with dividends.

2) No need to wait till end of calender year to reinvest dividends.

3) Except for ST Engineering, all are bought below book value. Only ST Engineering is a blue chip.

4) All have been paying dividends faithfully in the past decade without fail. Most pay dividends with a discernible trend.

5) Some counters have hidden value to be unlocked, but that is a bonus to holding them, not the main deciding factor.

6) This portfolio works in a market uptrend as well as downtrend. No need to time market. Dividends are there when the time comes and even if Lehman repeats itself.

7) REITS and Trusts are not included as high gearing and rights issue are associated with them.

8) However, if a counter runs up too much such that the yield goes down significantly, I will consider cashing out to add my holding of other counters, or a new counter where possible.

9) No need to closely monitor this portfolio. Once a month look is more than enough. Financial reporting can be viewed every 6-monthly. To me, a decade of discernible trend in dividend payout tells a lot more than those financials. The important part is mainly deciding on the entry price of the stock as my holding period is mid to long term.

10) Boring strategy...don't you think so?

 

Have a workable plan and stick to it.

On a blog I came across recently, I saw that some people buy shares based on recommendations on other people's blogs.

Now, the reasons for the blog owner's buying might be different from that of the readers. Or worse still, the reasons might NOT be sound at all.

So it's far more important to develop a strategy based on one's own unique situation and circumstances and buy/sell/hold based on the latter.

I feel it's important to question the purpose of buying an equity. Is it for long term capital gain or short term flipping (the latter I do not practise and I do not recommend)? Is it for dividend income? What is the downside of the equity? What are the safeguards?

In addition, for myself, I ask the following questions:

a) How does one know and have a conviction that a price increase will happen in the next few years?

b) How does one know and have a conviction that a dividend increase will happen in the next few years?

c) What then is the appropriate entry price, with respect to a long term investing horizon?

The answer to b) is actually sufficient to answer a), as a dividend increase will invariably be accompanied by a share price increase.

You may also be interested in:


You have no rights to post comments

Counter NameLastChange
AEM Holdings2.360-0.130
Best World2.450-0.010
Boustead Singapore0.955-
Broadway Ind0.126-0.004
China Aviation Oil (S)0.9300.010
China Sunsine0.415-0.005
ComfortDelGro1.490-0.010
Delfi Limited0.9100.015
Food Empire1.280-0.020
Fortress Minerals0.310-
Geo Energy Res0.305-0.005
Hong Leong Finance2.510-0.020
Hongkong Land (USD)3.2100.100
InnoTek0.550-0.010
ISDN Holdings0.305-
ISOTeam0.044-
IX Biopharma0.043-
KSH Holdings0.250-
Leader Env0.0500.003
Ley Choon0.0490.005
Marco Polo Marine0.070-
Mermaid Maritime0.141-0.001
Nordic Group0.3150.005
Oxley Holdings0.086-0.002
REX International0.132-
Riverstone0.785-0.035
Southern Alliance Mining0.430-
Straco Corp.0.485-
Sunpower Group0.2050.005
The Trendlines0.0650.002
Totm Technologies0.0220.001
Uni-Asia Group0.820-
Wilmar Intl3.230-0.110
Yangzijiang Shipbldg1.7600.040
 

We have 568 guests and no members online

rss_2 NextInsight - Latest News