Instead of spending the start of every month preparing for (and boring you with) both the expenditure and passive income updates, I have decided to provide the latter only during the middle of the month, like now. This way, I am able to use more accurate figures (September statements that arrive only in early October) and also provide the amount of dividends I actually received for the past month. After all, I have to admit the dividend figures on the My Passive Income page are just estimates or forward indicators of the income I would receive.
The markets rallied in September (up >10% within a few weeks) after the much-feared QE tapering was again delayed. Therefore, not surprisingly, this translates to a quiet month for me with no significant transactions except the monthly savings ploughed into the Philips Sharebuilder Plan. After all, I had exhausted quite a few bullets in August too.
Although there is no change to passive income which stands at around $5,500, the valuation of these assets increased by ~$8k after the market rebound. Interestingly, this amount is almost our monthly pay. I know I am dreaming but if every month is like this, I really can semi-retire right now and live off the capital gains. =p
The dividends received in September was pretty substantial too with Challenger, MTQ, Boustead and Kingsmen crediting money to my account. Total dividends received was a healthy $881.50.
Details of my updated portfolio are shown below.
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Stocks (As at 15th October 2013)
| Stock | Share Amt | Share Price | Valuation | Dividend | Est. Income |
| Vicom | 4,000 | $4.900 | $19,600 | $0.1820 | $728.00 |
| Wilmar | 4,000 | $3.250 | $13,000 | $0.0500 | $200.00 |
| Boustead | 9,000 | $1.370 | $12,330 | $0.0700 | $630.00 |
| Semb Corp | 2,000 | $5.260 | $10,520 | $0.1500 | $300.00 |
| SIA Eng | 2,000 | $4.950 | $9,900 | $0.2200 | $440.00 |
| Spindex | 24,000 | $0.410 | $9,840 | $0.0180 | $432.00 |
| Kingsmen | 10,000 | $0.915 | $9,150 | $0.0400 | $400.00 |
| Challenger | 16,500 | $0.560 | $9,240 | $0.0225 | $371.25 |
| First Reit | 8,000 | $1.105 | $8,840 | $0.0724 | $579.20 |
| Singtel | 2,000 | $3.710 | $7,420 | $0.1680 | $336.00 |
| LKH | 10,000 | $0.655 | $6,550 | $0.0450 | $450.00 |
| MTQ | 4,000 | $1.420 | $5,680 | $0.0450 | $180.00 |
| Total | $122,070 | $5,046.45 |
Others (As at 15th October 2013)
| Asset | Valuation | Est. Income |
| Philip Sharebuilder | $22,246 | $400 |
| CIMB Star Saver | $10,000 | $80 |
| Total | $32,246 | $480 |
Total Valuation = $154,316
Total Est. Income = $5,526.45
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Do refer to my first monthly update if you would like some additional background to most of my purchases.
Hi Hww
Do you mind sharing some of the potential for Challenger. I know it has a great balance sheet that pays good dividends from my studying project. Can you share more on its potential? I might be interested in it also.
Hi B,
Honestly, I didn’t crunch much numbers then (except for the basic P/E and the fact it was nett cash) when I made a small investment in Challenger 2 years ago.
It’s more of macro factors since I believe it will become the largest I.T. retail chain store in Singapore, if it isn’t already then. Compared to EpiCentre (which only sells Apple products), I felt Challenger was better placed to take advantage of the increased expenditure on I.T. products.
Would an “event” like the QE tapering is an influencing factor on your investments decision?
Hi Money Honey,
I would say yes. If QE tapering comes in (which ironically also means economy should be doing better), it’s likely the market would tank and I probably would go for some shopping.
You never know when an “event” might happen so it’s good to leave some cash around for deployment. I rarely like to showhand.
Dividends for Challenger looks good, given the price level. But in a recent news report, it was stated that IT expenditure in Singapore is saturating. Doesn’t bode well for Challenger.
Regards,
SG Wealth Builder
(www.sgwealthbuilder.com
Hi Gerald,
On first look, it seems pretty accurate that growth for Challenger in Singapore appears limited since there’s almost one in every neighborhood. Many Singaporeans are already spending quite a bit on I.T. products (changing laptops once every 2/3 years and upgrading to the latest tablets).
I feel the key to future growth would be their performance/expansion in regional markets. Not easy to gain a strong foothold in foreign markets for most retail companies that originated from Singapore. After all, not every country is as business & SME friendly as ours.