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AK: 10 Sources of Passive Income from Non-REITS, 2015
Aspire, Hot Picks, Thought Leaders | 01 October 2015
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By: AK(ASSI)
Articles (41) Profile

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

4. Starhub

5. SembCorp Industries

In the last three months, I have also initiated long positions in the following as investments for income:

6. VICOM
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:

9. Wilmar

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:

1. SATS

2. Old Chang Kee

3. APTT

4. SingTel

5. SCI

6. SMM

7. Wilmar

8. NeraTel

9. ST Engineering

10. QAF Ltd.

11. Starhub

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.

AK is a Singaporean stock market investor and a popular blogger. His blog was created with the intention of educating investors and sharing his investing journey with the target of having a more secure financial future in an uncertain world by creating a stream of reliable passive income with high yields.

Please click here for more information about this author.

Accordia Golf Trust  0.685 -0.015 -2.14%   
Business: S'pore's first business trust with golf course assets in Japan.

Insight: Aug-17, 1Q18 operating income increased by 1.1% to... Read More
Ascendas Hospitality Trust  0.855 -0.010 -1.16%   
Business: Comprises the Ascendas Hospitality REIT as well as Ascendas Hospitality Business Trust, predominantly in the Asia Pacific region.

Insight: Aug-17, 1Q18 gross revenue grew 2.2% lifted by app... Read More
Singapore Technologies Engineering  3.280 -0.01 -0.30%   
Business: An integrated engineering group providing solutions & services across many sectors. [FY16 Turnover] Aerospace (37.2%), electronics (28.2%), land systems (19.5%), marine (12.6%), others (2.5%).

Insight: Nov-17, 9M17 net profit rose 9.3% to $343.4m. Reve... Read More
StarHub  2.840 -- --   
Business: [FY16 Turnover] Mobile (50.7%), enterprise fixed (16.7%), pay TV (15.8%), broadband (9%), sale of equipment (7.8%).

Insight: Nov-17, 9M17 net profit fell 18.3% to $234.9m, mai... Read More
Sembcorp Industries  3.060 +0.01 +0.33%   
Business: Primarily engaged in the production and supply of utilities services. [FY16 Turnover] Utilities (52%), marine (44.8%), others/corp (3.1%), urban development (0.1%).

Insight: Nov-17, 9M17 net profit declined 15.9% to $208m dr... Read More
VICOM  -- -- --   
Business: Co is a leading provider in technical testing and inspection svcs.

Insight: Aug-17, 1H17 revenue slipped 5% as a result of low... Read More
RHT Health Trust  0.850 +0.005 +0.59%   
Business: Biz trust comprising of healthcare assets in India.

Insight: Aug-17, 1Q18 revenue increased 6.8% mainly due to ... Read More
King Wan Corp  0.150 -- --   
Business: Integrated building services and mechanical and electrical (M&E) engineering specialist. [FY17 Turnover] Plumbing & sanitary (71.9%), electrical (24.9%), toilet rental (2.7%), investment holdings (0.5%).

Insight: Aug-17, 1Q18 revenue slid 33.7% due to lower volum... Read More
Wilmar Int'l  3.150 +0.01 +0.32%   
Business: Co's integrated agribusiness model encompasses the entire value chain of the agricultural commodity processing biz, from origination and processing to branding, merchandising and distribution of a wide range of agricultural pdts.

Insight: Aug-17, 1H17 revenue increased 15.2% on the back o... Read More
OUE  1.950 +0.020 +1.04%   
Business: An integrated property developer with real estate portfolio located in prime locations in the US & Asia. [FY16 Turnover] Ppty devt (45.5%), ppty invs (29.9%), hospitality (22.8%), others (1.8%).

Insight: Nov-17, 9M17 revenue fell 16.3% due to the absence... Read More


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