This month has been a draggy month. Problems in the Eurozone begins to resurface, with Spain in focus this time. This has once again caused jitters in the market, resulting in the tight range movement of the STI, fluctuating above and below the 3,000 mark.
This month, I made the decision to include SMRT into my portfolio, after it has dropped till $1.70, to boost my dividend portfolio. At $1.70, it translates to a historical 5.0% dividend yield. However, due to the plunge in quarterly profits, SMRT decides to cut its final dividend to 5.7 cents, which is lower than the previous 6.75 cents. This gives a dividend yield of approximately 4.2%. I believe in the long term, 4.2% dividend yield is still rather attractive, however, all waits to be seen how SMRT will perform in the upcoming months, especially with regards to the inquisition carried out at this moment. I still believe that being the main monopoly of the public transport system in Singapore, the demand will still be there, which will be the primary support to their revenue.
This month is also the earnings report season for the first quarter of 2012. For this quarter, the results were mixed, with many companies reducing their dividend payout to retain more cash holdings in view of moew uncertainty ahead. Soup Restaurant has reduced its dividend payout to $0.00175 per share. On the other hand, CapitaMall Trust has reported a dividend payout of $0.0230 per share while Mapletree Logistic Trust reported a dividend payout of $0.0170 per share.
After this month, we enter the month of May. Will the saying "Sell in May and Go Away" pan out this time round? No one is sure about what is about to happen, but uncertainties are looming, as results of elections in France and Greece are still an unknown. I believe volatility is here to stay, and if opportunity arises, I intend to increase my holdings in my dividend counters to increase my dividend returns during times of volatility and uncertainty.
My Current Portfolio:
Lessons learnt: Learn to add on winners, and reduce losers. I will need to be very discipline to learn this, as eliminating losers is the hardest thing to stick to.
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