Singapore Dividends for Financial Freedom - Will Starhub and Singpost ever recover?

Years ago I bought into Starhub and Singpost with a buy to hold strategy believing they would be good counters to rely on come rain or shine.

Now I know I was wrong.

Presently, Star hub is down almost 58% and Singpost 35%. Luckily, I took relatively small positions in these companies at the time, so the damage isn't too bad, but still their presence in my portfolio does give me cause for concern.

Sure, I should have had a stop loss on the counters, but this is easy to say in hindsight. There are massive black clouds hanging over both companies and more unease brooding on the horizon, so what's a man to do? Sell and take the hit or hang on with crossed fingers and see if they can turn things around?

I've been deliberating this for months now and still I'm undecided. One moment, I'm ready to hit the sell button and then a voice tells me never to sell on emotion. However, the longer I think about the situation and the future, the less I feel emotion is the causal factor. The fact is that both companies are in the shit.

Starhub's price has taken a nosedive and to prevent an outright investor stampede they have hiked up their dividend to unsustainable levels. We all know what's going to happen when they have to cut this dividend. So, is there any way for the company to Houdini their way out of this hole? With the new (albeit smaller than previously expected) 4th telco joining the party how are Starhub going to reverse the trend?

The same applies to Singpost. They are in a tight spot, but are at least trying to diversify, but will it be enough?

Let me know your thoughts people.

Preparing for market crash - gold and Bitcoin?

Hands up if you think global markets are going to crash in the next 12 months?

If been trying to keep my emotions in check with regard to this, but I can't help noticing an ever darkening cloud overhead.

What's one to do then? Sell and run to the hills? Load up on gold? Admit yourself to a mental hospital and ride the wave?

Who the hell knows eh?

To be honest, I've been deliberating making 10% of my portfolio gold. I joke you not. For me, it's more about hedging and protecting my cash which is in a currency I'd rather not reveal.

I know gold doesn't pay a dividend and you have to pay for storage etc. but I still feel that when the shit hits the fan and there's blood in the alleyways, it'll be the gold holders smiling and sleeping comfortably, while everyone else goes grey and drinks vodka by the pint glass.

What do you think then folks? To gold or not to gold - that is the question.

I've even been thinking of putting about 1% of my portfolio in Bitcoin as well.

Here's why...

OK, so right now the majority of the world's wealth is in the hands of the Baby-Boomers, and all the way through their investing careers they heard the same thesis: when the markets crash - hold gold. Agreed? Yes, it's true. That said, think ahead...

Once all the wealth begins to transfer from the Baby-Boomers to Gen X and eventually the Millennials, we are going to see something new. The Millennial especially have grown up with Cryptos being the norm, and for many of them Cryptos are the true alternative to cash. Thus, where to you think these newly cashed up people will turn in 15 years time when a crash threatens the markets? Gold? No way! Gold will be for old folk!

So, I think there's a clear case for buying up a small proportion of Bitcoin and holding it for a couple of decades.

As for now though, I think 10% of the portfolio in gold is the way to go.

What do you all think?

Singapore Dividends for Financial Freedom - Dividend Portfolio Update 2-5-19

Just like Mona, I, too, have a half smile on my face.

Alright folks, how have you been? It's been a busy few months at work and hence my absence from the blogging scene. But, now I'm back with a vengeance and ready for action.

The total value of my portfolio now stands at $986,000

This is with a total of $959,000 invested.

Thus, there's a paper gain of almost $30,000

Those of you who have read my blog before know my main portfolio focus is income, but that's not to say I don't have growth stocks as well. I do.

My growth stocks include the following:

SAT currently up 59%
SGX currently up 9%
Sheng Siong currently up 18%
Thai Bev currently down -1%
Wilmar Inter currently up 2%

I'm presently happy enough with the performance of these shares. Thai Bev is down slightly, yes, but I don't think this is a lot to worry about in the long run. Their purchases in Myanmar, Thailand and Vietnam will hold them in good stead for the years to come.

Also, most of the REIT/Trusts in my portfolio are doing well also.

Aims currently up 5%
Ascendas currently up 16%
Ascendas H Trust currently up 6%
Ascott currently up 13%
Capital Com currently up 16%
Capital Mall currently up  22%
Fraser Com T currently up 9%

That said, it's not all good in the portfolio, for their are a few counters severely holding back the overall performance. Namely...

Accordia Golf Trust currently down 9%
First REIT currently down 9%
Global Investments currently down 11%
Singpost currently down 37%

Singtel currently down 18%

Starhub currently down 59%

I feel Accordia will be OK in the long run and it's big dividend offsets paper lossed.

First REIT is an unknown. I'm thinking about reducing my stake in it next week. 

I feel Global Investments will be OK in the long run.

Singpost is a smaller holding  so I'm not overly concerned.

Singtel will be fine in the long run and, as we all know, it pays a handsome dividend.

Starhub is again a small holding (thank goodness) but it's painful all the same. Can they pull things around? I honestly don't think they can. Thus, I'm biding my time and waiting for some positive news to bump the share price up before I sell. Of course, this day night never come especially if they cut their current unsustainable dividend. I'm suitably nervous about this counter.

In 2018 I earned almost $40,000 in dividends, and I'm expected more from 2019.

You can read about this here and here

Therefore, my portfolio is a mixed bag at the moment with the Telcos inflicting more pain than is necessary. REITS are still doing nicely as are the growth stocks.