Some wonder if Mr. Market could go into a depression. I don’t know about that but I do know that many stocks became much more attractively priced in the last three months.
Consistent with my strategy to diversify my portfolio to reduce reliance on S-REITs for income, I added the following to my long positions as their stock prices have declined more significantly recently:
1. Accordia Golf Trust
2. Ascendas Hospitality Trust
3. ST Engineering
5. SembCorp Industries
In the last three months, I have also initiated long positions in the following as investments for income:
A 15x PE ratio would give us a fair value of $5.36 or so per share.
7. Religare Health Trust
Trust has demonstrated its ability to improve its revenue organically quite strongly which makes up for the expiration of the sponsor’s waiver to their share of the distributable income.
8. King Wan
King Wan is in a net cash position and it also has an order book that would provide earnings visibility until 2018.
Finally, I accumulated the following stocks from a bit of an income investing angle, but the main reason is because I think they are worth much more and thus at lower prices, they became even more attractive:
10. OUE Limited
Should you be interested, you can search ASSI for more of my blog posts on these stocks and why I decided to add them to my portfolio when I did.
Of course, stocks could stay undervalued for a long time but regularly receiving some dividend in the meantime makes the waiting more palatable. I like to be paid while I wait.
If you suspect that I have dipped into my war chest in the last three months, you are right.
Could we see another big decline in the stock market? We could and we should be ready. So, being cautious, I have not exhausted my war chest.
I have a couple of fixed deposits maturing next month in October and I will probably be keeping the money close at hand instead of putting it in another fixed deposit or two.
In Q3 2015, the following non-REITs paid dividends:
2. Old Chang Kee
9. ST Engineering
10. QAF Ltd.
12. HongLeong Finance
13. Croesus Retail Trust
For the first 9 months of 2015, total passive income received from non-REITs: S$ 57,747.59.
This works out to be S$ 6,416.40 per month.
Have a shopping list and be ready to pounce if Mr. Market becomes depressed.