Starhub, First REIT and Aims Amp Industrial Trust on my portfolio (view my current holdings here) have been on a tear. To be honest I thought they would under perform the market but the rise is nice.
Starhub is in a very nice upward channel long term wise. It has now breached its 2008 highs of 3.13. In this channel, there are corrections almost half the size of the climb. If you want to get invested at lease wait for the pull back.
The same can be said of First REIT as well. Clear pullbacks to the 43 week moving average, which will bring it back to my purchase price (gasp! think of the profits that I would have missed out)
However I believe my average price isn’t terribly cheap, the value is fair. Now with the run up the dividend yields do not look as good. In fact most of the stocks on my dividend stock tracker have yield compression since they all run up.
In the case of Starhub the yield is just 6.27% which still beats fixed deposits by a lot. For First REIT it was compressed from 8.2% to 7.2%.
We don’t see a rise in volume or that any substantial shareholders getting invested so I don’t feel a strong justification of the overseas fund flows injection theory.
Do we expect to see any earnings upgrade? I don’t think so as well. We won’t be expecting large earnings changes.
I run a free Singapore Dividend Stock Tracker . It contains Singapore’s top dividend stocks both blue chip and high yield stock that are great for high yield investing. Do follow my Dividend Stock Tracker which is updated nightly here.
Kyith is the Owner and Sole Writer behind Investment Moats. Readers tune in to Investment Moats to learn and build stronger, firmer wealth foundations, how to have a Passive investment strategy, know more about investing in REITs and the nuts and bolts of Active Investing.
Readers also follow Kyith to learn how to plan well for Financial Security and Financial Independence.
Kyith worked as an IT operations engineer from 2004 to 2019. Currently, he works as a Senior Solutions Specialist in Fee-only Wealth Advisory firm Providend. All opinions on Investment Moats are his own and does not represent the views of Providend.
You can view Kyith's current portfolio here, which uses his Free Google Stock Portfolio Tracker.
His investment broker of choice is Interactive Brokers, which allows him to invest in securities from different exchanges all over the world, at very low commission rates, without custodian fees, near spot currency rates.
You can read more about Kyith here.
- New 6-Month Singapore T-Bill Yield in Late-September 2023 Should Stick to 3.75% (for the Singaporean Savers) - September 21, 2023
- A Concentrated, High-Quality Fixed Income Financial Independence Income Strategy Has Enough Uncertainty - September 20, 2023
- Why Do We Save Money After We Reached Financial Independent Status? - September 18, 2023
SnOOpy168
Wednesday 11th of April 2012
Both I will be holding as the yield are fantastic. Just that couldn't add more at these prices and that I hoped Starhub won't buy back my shares in CDP a/c leaving me with some odd numbers (ending with 580 shares).
Drizzt
Wednesday 11th of April 2012
hi snoopy, there were indeed good but i think the price have overrun. what is the alternative here? finding it difficult to discover attractive shares that have low risk.
Derek
Thursday 5th of April 2012
Drizzt,
That's my worry too. Mr. Greed is really evil. I guess I will remain steadfast and ignore the market sentiments unless First REIT rises to $2! hahaha.. I need to wake up.
Drizzt
Wednesday 4th of April 2012
hi abc, i was talking about compressing current yield not my yield on cost haha.
Drizzt
Wednesday 4th of April 2012
The last time i let go of something good like starhub i end up being a fool not being able to buy it back.
Conviction plays a key role here. Why? If you have a good conviction you would have accumulate large number of these stocks. when it break trend or top of channel sell a portion of it. if it never comes back at least u have a portion that is still riding if it comes back you can buy back again.
the problem is my position still very small. if you guys position is bigger than mine u can do something like this.
abc
Wednesday 4th of April 2012
Dividend yield can be computed based on the original share price you bought. If you do that, it is likely you will see yield has improved and not compressed.