On-Target for 6-Figures 2023 Income

 

With the closing of Q1 today, it is time to count my blessings and also look forward to the rest of 2023. Bearing unforseen circumstances 😜, I am projecting a 6-figures semi-passive income for the whole year of 2023. For Q1, I have achieved 26% and for 1H 56% of income target. For 2023, forecasting 107% ON-target 😎.

Most of this income comes from dividends of blue chip companies like Banks (OCBC/DBS/UOB), Reits (MIT/AA), Bonds (Tbills/SSB) and some from the sale of Sembcorp Industries. For the time being, my focus is only in the Singapore market, and yield is single digit % of my 7-Figures Portfolio. 

Investing, need not be too stressful if done properly, balancing Risks vs Rewards and going after some good opportunities in the Singapore Market. 

I share this post with apprehensions and concerns to my personal privacy, yet at the same time wanting to encourage readers to press-on their investing journey. Like some bloggers (ASSI/CW8888/STE) who have willingly shared their experiences, I too feel it is important to share for the benefit of the Singapore investing community. Our investing journey can be lifelong and filled with many ups and downs. Many times I too have my fair share of big losses like Hyflux, Noble, Chartered Semiconductor and delisted China stocks. Only by putting behind these painful experiences, can we bravely move forward to continue and win the prize. Remember always that investing is a marathon and not a sprint.

Let's all run well together. Learning from one another and encouraging one another. Finishing the race with the goal in mind! Gambatte! Jiayou! Onward!

Is AA Reit at $1.3 a good BUY?

 

Listed on the Singapore Exchange Securities Trading Limited ("SGX-ST") since 2007, AIMS APAC REIT’s ("AA REIT") objective is to invest in a diversified portfolio of high quality income-producing logistics, business parks and industrial real estate throughout Asia Pacific.

https://www.aimsapacreit.com/

AA Reit's current market capitalization is around $1B, and boasts of 29 properties in Singapore/Australia with $2.4B of total assets. Most notably is the large purchase of Woolworths HQ in Australia, which is starting to contribute to the Reit's revenue.

The long term stock price has been hovering around $1.3 since 2013, with the exception of price weakness down to $1 in 2020 due to Covid outbreak.

With the latest quarterly dividend of 2.59c, we are looking at a forward yield of almost 8% at $1.3

For the past 12 months, AA reit stock price has been fairly resilient between the range of $1.11-1.44, despite pressures on rising interest rates and USA/Swiss bank failures. It is now 8% away from its 52 weeks high and 19% from its 52 weeks low.

With the fast rise of interest rates behind us, and looking to a more flat or even decreasing interest rates in 2023, would the 8% yield entice investors to buy this Reit?

Pls let me know in your comments below. 

*Disclosure: I am currently vested in AA Reit

Is DBS at $32.7 a good Buy?

DBS bank is the largest company in Singapore with a current market capitalisation of $84 billion. With rising interest rates, net interest income spiked and DBS booked a record FY22 net profit of $8 billion. With this eye-popping profit, DBS has announced an upcoming April dividend of 42c + 50c of special dividend. Forecasting another 3 quarters of 42c dividend, the FY23 dividend yield is projected at 6.7% at the current price of $32.7 (a high yield % that is commonly only seen with Reits)

From the long term chart, we can see that DBS has recovered strongly from the 2020 Mar lows from Covid, and is currently sitting at the support levels of $32+. Another strong support would be around $30, which is also a psychological price support. Resistance level would be around $36+ (3 year highs)

Taking a closer look at the short term chart, we can see that the weekly stochastic oscillator has turned to the oversold regions currently. If share prices recover from $32.7, it will form a bullish divergence.

The recent negative news on the collapse of SVB and Silvergate USA banks have sparked fears of contagion, and invoked shadows of the Global Financial Crisis triggered by Lehman bank bankruptcy. So far, USA and UK government have stepped up quickly to protect depositor funds.

Will this be a good time to pickup this solid DBS bank, or there be further selling? Pls let me know in your comments below :)

*Disclosure: I am currently vested in DBS

Is SCI at $3.71 a good SELL?

Sembcorp Industries is a govt-linked energy and urban solutions company with a market cap of $7B. With the latest good FY22 results of $848 net profit, they have proposed a 4c+4c final+special dividend (FY dividend yield 3.2%). After divesting its interests in Sembcorp Marine, it has climbed steadily from the past 3 years to $3.71

It is currently hovering close to its recent 52w high of $3.83, with some sellers eager to divest for profit.

Will it be able breakthrough this price resistance level to achieve $4? Please help to comment below 😎

*Disclosure: I am currently vested in SCI

Is Wilmar at $3.94 a good BUY?

 

Wilmar is one of the largest companies in Singapore with a market capitalisation of $25B. With a record FY22 net profit of US$2.4B and upcoming increased dividend payout of 11c, its price however has been under pressure these days. Mr Kuok, the Chairman and CEO of Wilmar even had to support its price this week, as the stock succumbed to $3.87 from heavy selling. 

From the Covid correction in Mar 2020, its price has rebounded from $3 to $5.3 in Mar 2021, only to retrace till its current $3.94 price. With a dividend of 17c, this translates to a 4.3% yield (slightly higher than current SSB, T-Bills and Fixed Deposits).

The price weakness could be due to management expectations of a challenging FY23 with plantation profits under pressure but mitigated by China reopening from zero-Covid policy.

Taking a longer term view on price: Wilmar used to be $6+ in 2010, before consolidating to form a solid base of around $3 in the years of 2013-2019.

Would these base years of company restructuring into a solid commodity company translate to a stronger price in the near future?

Please feel free to leave your comments below

*Disclosure: I am currently vested in Wilmar

Buying $1K T-Bills with SRS

As there tends to be some balance money from dividends of existing stocks bought from SRS, I have been using these to purchase T-Bills. The min T-Bill investment amount is only $1K, super safe and there's also no transaction charges involved. Better to put into T-bill to receive around 4%, than for the funds to idle in SRS to earn 0.1%  😂

https://www.mas.gov.sg/bonds-and-bills/Singapore-Government-T-bills-Information-for-Individuals

Please leave your comments below, if u have better ideas on how to utilise the remaining $1K in SRS  😎

First Maturity of 2.98% BS22116Z T-Bill

The first maturity of my first 6 months t-bill BS22116Z yielded 2.98%, with many more to come in the next few weeks and months. I have been able to invest consistently over the past few months to create a perpetual bond ladder to ensure a steady stream of income. 

https://www.mas.gov.sg/bonds-and-bills/Singapore-Government-T-bills-Information-for-Individuals

It has truly been an interesting learning experience to acquire new knowledge on how bonds work. Bonds vs Equities are usually inversely correlated, and having this new knowhow thus makes my investment portfolio much more balanced and comprehensive.

With a much more volatile global environment moving forward, it certainly pays to balance Risk vs Reward more carefully to ensure a solid future. The world has indeed changed much since the onset of Covid19 and subsequently the current Ukraine war. I am heartened that many in the online community has selflessly offered their 2c to help others secure the right financial knowledge. With more Knowledge comes Power and also Responsibility. I was pleasantly surprised when my mum told me today on her intentions to also contribute back to the society. We are truly blessed to be living in Singapore (compared to the horrors seen in Ukraine). 

Times flies and a yield of 2.98% seems like a pale, compared to yields now of around 4%. I can almost recall the excitement I had 6 months ago on this yield. So much has changed in such a short span of time, and a cliché statement that the only constant in this fast moving world is change.

Let's all improve and change for the better, and good of the society.

HSBC 5.55% EGA Savings Account

With the Nerf of RHB high yield savings account bonus interest, it is time to look for another appropriate savings with good rates. There has been some online chatter on how good the HSBC Everyday Global Account (EGA) is, but the terms & conditions are complicated and difficult to understand. Still with a determination to make my monies work harder, I plunged into the HSBC website head-on and also made a long call to their customer service.

https://www.hsbc.com.sg/accounts/products/everyday-global/

https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/hsbc-everyday-global-account-bonus-interest-promotion.pdf

True to online feedback, the HSBC website is confusing with quite a few ongoing promotions concurrently ongoing. But I guess at the end of day, the most important reason would be the favourable 4.55% interest rate for Incremental Balances vs Reference Month

Plus there is also a 1% bonus interest rate (Everyday Rewards+ Programme) on the incremental balances, which makes it a total of 5.55% yield!

https://www.hsbc.com.sg/content/dam/hsbc/sg/documents/accounts/everyday-global/terms-and-conditions-governing-everydayrewards-programme.pdf

It seems quite silly just to make 5 consecutive funds transfer of $1 each to another bank account (yes, even the HSBC customer service admitted so!) to qualify.

This 1% bonus rate runs only for incremental balances from the previous month, so if u open the EGA account on March, you would need to transfer your monies out on 1 April, and then back again on 1 May, to enjoy this bonus interest. With FAST bank transfers which are instantaneous, this would be easy. Just need to set a reminder in the phone calendar, to perform this 1 minute transfer to enjoy a high 5.55% interest rate.

Oh yes, I would also choose Personal Banking, instead of Premier, as there is a bank charge of $50! if the total relationship amount drops below $200k. 

If u have further questions, pls feel free to comment below

Enjoy this high interest rate while it lasts!  😁

SC 3.8% e$aver Savings Account (Mar 2023 ONLY)

 I have just received the Bonus Interest for the month of February, and would like to share on this absolutely no-frills 3.8% cash savings account. Compared to other bank deposits currently available like OCBC360/UOB accounts (where u would need to credit your salary, spend $800 credit card, increase $500 monthly average daily balance etc), this SCB account takes almost no effort to achieve. 

Another big plus for people who are holding more emergency cash for various family reasons, is that this bonus interest pays up to $2 million vs $100k only for OCBC/UOB. Promotion is ending soon by end March. So do take a quick look before the promotion ends. Let's make our money work harder!  😅

https://www.sc.com/sg/save/savings-accounts/esaver/?subChanCode=IBSC

Standard Chartered has given a good example under their terms & conditions on the calculation of 3.8% bonus interest

https://av.sc.com/sg/content/docs/sg-esaver-tnc.pdf

Once again, Bonus Promotion ends by end March, so do transfer your funds fast! 😂