Q1 2021 Portfolio Updates

 Market continued its uptrend from 2020, and with the Covid-19 situation stabilising, the old economy counters have started to recover as well. Overall, the local market had moved up along with the rest of the global indexes. As such, some of the sectors are not as cheap as they were during the massive correction last year.

Transactions

With the recent run up, I took profit on the following counters.

• Kimly
• DBS
• OCBC (Partial)
• Exxon
• STI ETF (Partial)

Some of the counters were mentioned in this post. For DBS, using 5 years average dividend of $1.09, at $25 it is fairly valued. Of course it can go higher but I am happy with my profit.

The reason that I took profit is they have given me decent returns, most up to 5 years worth of dividend that I would have collected. With the sale, I can use it to invest in counters unloved (below) at the moment. The lesson learnt from the March 2020 correction is that one must have enough bullets to capitalise.

Unloved Counters

Using the profits from the sale, I invested into these counters.

• Keppel Reits
• CDL HTrust
• Jardine C&C
• Manulife US Reits
• Starhill Global Reits
• Yanlord

Reits sector performed badly last year and investors avoided them. The leading ones like the Industrial Reits managed to hold well and most are already fully valued. However, the Hospitality, Office and Retail Reits are still in bad shape. This gives opportunity for us to invest, collect dividend while waiting for market to notice them again.

Jardine C&C is a counter in the STI index, using the 5 years average dividend of SGD$1.07, at 4% yield, it is still undervalue. 

The irony is when market is heavily corrected, everyone is worried. And when the market is moving up every other day, everyone is talking about investing for dividend. It is only during tough times that the yield is attractive as the price is low.

Trading

I have started trading for few months now, with small amount, this is to capitalise on recovery play and when market is moving up. These are counters that I have bought;

• Raffles Medical
• SPH
• China Sunsine
• Genting

Thanks for reading.

Above information does not constitute investment advice or recommendations.