Dividends Received August 2024
August 2024 Dividend Report: Strong Performance
Welcome back to The Investment Brief! It’s that time again to break down the dividends received for the month of August. Overall, this month was another success, with income coming from a variety of sectors, reinforcing the importance of a diversified portfolio. Let’s dive into the specifics.
Total Dividends Received in August:
Total Amount: $10,946
Sector Breakdown & Key Insights:
1. Financial Sector:
UOB: $1,837
DBS: $647
ICBC: $299
Ping An: $1,113
The financial sector continues to be a cornerstone of my portfolio. UOB led the way, contributing $1,837, and remains a key holding due to its strong fundamentals and consistent dividend payout policy. Similarly, DBS and ICBC continue to deliver, with dividends of $647 and $299, respectively.
Ping An, despite the challenges faced in the Chinese economy, remains a strong performer with a payout of $1,113. The diversification within the financial sector, particularly the exposure to both domestic and international institutions, helps to mitigate risk while ensuring steady returns.
Analysis: The financial sector has been resilient, even in the face of macroeconomic pressures such as rising interest rates and regulatory tightening in China. My focus going forward will be on maintaining exposure to these reliable dividend payers, with a close watch on any significant economic changes, particularly in China.
2. Consumer Goods & Services:
SATS: $44
Singtel: $1,027
Sheng Siong: $640
Wilmar International: $1,494
The consumer goods and services sector continue to be a reliable income generator.
Singtel, one of the largest telecom companies in Asia, contributed $1,027, highlighting the continued strength of the telecommunications sector. With the increasing demand for data services and 5G infrastructure, Singtel remains a long-term play in the portfolio.
Sheng Siong, a key player in the supermarket business, provided a healthy $640. With steady growth in consumer staples, Sheng Siong’s consistent dividends make it a reliable source of passive income.
Wilmar International was a standout in the agribusiness space, delivering $1,494. This sector plays a crucial role in food production and continues to be a major contributor to my portfolio’s income stream.
Commentary: The consumer goods sector remains strong, especially in telecom and agribusiness. Wilmar's significant contribution further solidifies its position as a core dividend payer, benefiting from rising global demand for food products and commodities.
3. Real Estate Investment Trusts (REITs) & Agri-Business:
Parkway Life REIT: $378
I-REIT Global: $1,856
Olam International: $1,215
Real estate continues to play a vital role in providing steady income. I-REIT Global, with a contribution of $1,856, was one of the highest payers this month. Its exposure to European commercial properties offers diversification outside of the Singaporean market, which I find valuable for balancing regional risk.
Parkway Life REIT, specializing in healthcare-related real estate, continues to perform steadily, with a payout of $378. The healthcare sector is relatively insulated from economic downturns, which adds stability to my REIT holdings.
Olam International, Olam International is a global agribusiness focused on the production, sourcing, and distribution of agricultural products such as cocoa, coffee, and edible nuts. It operates across the value chain, emphasizing sustainability and digital innovation. Olam's recent restructuring aims to streamline operations and enhance growth in its food ingredients and global agri-business segments. Its $1,215 dividend reinforces the importance of companies diversifying their portfolios.
Commentary: REITs remain a strong part of the portfolio, providing both stability and growth opportunities. In particular, I-REIT Global’s (currently oversold IMO) international exposure adds valuable geographic diversification, and I anticipate continued strength from Parkway Life’s focus on healthcare infrastructure.
4. ETFs:
JP Morgan Nasdaq ETF (JEPQ): $35
JP Morgan Equity Income ETF (JEPI): $294
These ETFs are part of my strategy to provide broader market exposure with the advantage of steady income. JEPQ and JEPI are both strong income-generating ETFs, contributing a combined $329 this month. With their focus on income generation, they help balance the portfolio’s risk, particularly when equity markets are volatile.
Analysis: The ETFs provide steady cash flow, and their inclusion ensures exposure to different market sectors without excessive individual stock risk. I’ll continue to hold these as long-term components of my portfolio due to their income focus.
Key Takeaways from August:
Diversification Pays Off: This month’s dividends demonstrate the importance of holding a well-diversified portfolio. With contributions from financials, consumer goods, REITs, and ETFs, I’m able to capture income across various sectors.
Focus on Growth & Stability: Wilmar, UOB, and I-REIT Global were the top performers this month, reflecting the importance of focusing on both growth sectors and stable industries. I will continue to monitor developments in agribusiness, real estate, and financial services, ensuring my holdings remain aligned with macroeconomic trends.
REITs as Defensive Plays: Given the current market uncertainties, REITs, particularly in healthcare and commercial properties, offer defensive income plays. I-REIT Global’s strong contribution highlights the value of international diversification in real estate.
Looking Forward to September
For the coming month, I’ll be keeping a close eye on the ongoing developments in the global economy, particularly interest rate movements and inflation trends. These factors could influence financial stocks and REIT performance. I also expect continued growth in the consumer goods sector, particularly with Wilmar and Sheng Siong’s consistent performance.
As always, I’ll continue to share updates on the portfolio and my dividend journey. Let me know how your portfolio performed in August, and feel free to share your thoughts on any interesting dividend stocks you’re watching!
Until next time, happy investing!
IB