Nov 2016 Portfolio Update

Current Portfolio Size: $26,025.37 (with a starting capital of $24,000)

Current YTD: 8.44% (with dividends)


Purchases made during Nov
  1. Nil
Divestment during Nov
  1. Nil
Dividends collected during Nov
  1. Chemical Industries (Far East) Ltd (SGX:C05): $0.12 for 3600 units
  2. LTC Corporation (SGX:L17): $0.01 for 3700 units
  3. Wing Tai Holdings (SGX:W05): $0.03 for 1100 units
  4. Wing Tai Holdings (SGX: W05): $0.03 for 1100 units

Total Dividends Collected: $535.00

Benefits of diversification taking this place strongly this month. Even though I have a few individual stocks that are in the red currently, my overall portfolio is still in a healthy range in the green zone.

I currently hold 10 stocks, each representing approximately 10% of my stock portfolio.

This month, 3 stocks paid me dividends namely Chemical Industries (Far East) Ltd, LTC Corporation & Wing Tai Holdings. Chemical Industries Ltd surprised me a little with the exceptionally large dividend which represent a 21% gain at cost.

Hence, I decided to dive deeper to look at its recent report to see if I can find out where is this money coming from.

According to the latest half-yearly results of Chemical Industries (Far East) Ltd:

The Group is declaring a one-off interim special one-tier tax exempt dividend of 12 cents to return surplus cash to shareholders after taking into consideration the Group’s cash flow requirements for the next twelve months. This includes the repayment of the remaining S$7.240 million long-term bank loans in November 2016. After these payments, the Group continues to maintain a healthy cash position of about S$20.0 million for future deployment and opportunities.

This seems to be the reason why we are getting so much dividends back. In the same report, it is also mentioned that profitability has decreased due to loss of certain customers but liabilities also decreased due to repayment of short term loans. We can also expect revenue & profitability to decrease in FY17 due to poor economic conditions.

One more month till the first year anniversary of the start of my investing journey!



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