January to September 2024 - Dividend Portfolio Analysis: Some Musings On My Top Dividend Payers
As we enter October, it's time to take a closer look at how my portfolio performed over the first three quarters of 2024.
This year has been marked by strong dividend contributions from several key players across REITs, financials, and tech, providing me with steady cash flow and reinvestment opportunities.
In this post, I'll break down the numbers, analyze the top dividend payers, and explore potential areas for improvement as we move forward.
Key Dividends from January to September 2024
Here’s a snapshot of the top dividend contributors so far:
With these payouts, my portfolio remains heavily weighted toward REITs and dividend-paying stocks from Asia, particularly Singapore and Hong Kong. Let’s take a deeper dive into these companies and what they’ve brought to the table so far.
Ascenadas REIT ($7,503 total)
Distribution Months: March ($3,731) and September ($3,772)
Analysis: Ascenadas REIT is by far the biggest contributor to my dividend income. The near-identical payouts in March and September show a strong bi-annual distribution cycle. Ascenadas REIT is a cornerstone of my portfolio, providing a significant cash flow boost during these months.
Takeaway: This REIT is a rock-solid foundation for my dividend strategy, and its steady performance makes it a strong candidate for reinvestment.
Wilmar International ($4,233 total)
Distribution Months: March ($2,739) and August ($1,494)
Analysis: Wilmar’s massive March payout bolstered my portfolio, with the August payout maintaining momentum. This agricultural behemoth continues to deliver, and I see its position in my portfolio as a hedge against global supply chain issues. Wilmar’s strong dividend performance makes it an income-generating powerhouse.
Takeaway: Given its large contributions, Wilmar is a consistent performer, and I’ll likely look to increase my stake in this company to maximize future returns.
Capitaland Integrated Commercial Trust ($3,791 total)
Distribution Months: April ($1,899) and September ($1,892)
Analysis: This REIT provides reliable payouts, contributing nearly equally in both April and September. Its strong cash flow and real estate assets make it a cornerstone of my portfolio’s REIT exposure.
Takeaway: Capitaland’s stable, bi-annual payouts are a great balance to my portfolio. This REIT fits well with my long-term goals.
UOB ($3,612 total)
Distribution Months: May ($1,775) and August ($1,837)
Analysis: UOB, one of Singapore’s largest banks, delivered significant mid-year payouts. The strong dividends reflect its robust free cash flow and commitment to returning value to shareholders. Banking continues to be a safe bet in my portfolio.
Takeaway: UOB’s consistency reinforces the importance of having a financial sector anchor. The bank's strong dividends fit well into my overall income strategy, and I’m considering increasing my position when the price pulls back.
BABA ($1,980 total)
Distribution Months: January ($555) and July ($1,425)
Analysis: Alibaba remains a strong contributor, despite the uncertainty surrounding China's regulatory environment. Its hefty July payout was welcome, and the company's massive scale ensures that it can weather macroeconomic headwinds.
Takeaway: I’m cautiously optimistic about BABA’s long-term growth, but I’ll continue to monitor it closely given the potential for volatility in China. For now, BABA remains a key part of my portfolio’s tech exposure.
Keppel DC REIT ($724 total)
Distribution Months: March ($689) and September ($724)
Analysis: Keppel DC REIT delivers stable, bi-annual distributions. Its payouts are strong, suggesting that the data center sector remains resilient even in uncertain economic times. The REIT’s performance is a good defensive play.
Takeaway: This REIT provides both growth potential and income stability. I plan to hold and possibly expand my position as demand for data centers continues to rise.
Tencent ($1,047 total)
Distribution Month: June ($1,047)
Analysis: Tencent’s June payout added a nice bump to my mid-year cash flow. Despite regulatory risks in China, the company continues to dominate in its sectors, from gaming to fintech. Tencent’s diversified business model ensures it remains a reliable performer.
Takeaway: I’ll keep Tencent in the portfolio but will remain cautious of future regulatory changes. Its dominant position in the tech sector provides good diversification alongside my REIT-heavy portfolio.
DBS ($1,882 total)
Distribution Months: April ($588), May ($647), and August ($647)
Analysis: DBS pays quarterly, providing consistent cash flow throughout the year. As Southeast Asia’s largest bank, it maintains strong free cash flow and has been a reliable performer in my portfolio.
Takeaway: DBS’s regular dividends help smooth out the income spikes from my bi-annual payers, making it an important part of my strategy. This is a long-term position I will add to at the right price. The Singapore banks provide both income and growth.
General Portfolio Trends
REIT Dominance: With Ascenadas REIT and Capitaland leading the charge, real estate investments form a substantial part of my dividend income. This focus on REITs has helped provide stability and higher yields but can be sensitive to interest rate changes.
Strong Q1 and Q3 Payouts: March and September stand out as the months with the largest dividends. My portfolio is set up for strong bi-annual payouts, which are ideal for reinvestment or covering large expenses when they come due.
Geographic Exposure: My portfolio leans heavily towards Singaporean and Hong Kong-listed companies. While this offers good diversification across Asian markets, it also leaves me exposed to the risks of economic slowdowns or regulatory changes, particularly in China.
Potential Areas for Improvement
Manage Chinese Exposure: With large holdings in Alibaba and Tencent, I need to be mindful of the risks posed by regulatory changes in China. Expanding into tech companies from other regions might help reduce risk. Having said that, both companies have seen massive stock price appreciation in the past week.
Conclusion
As we move into the final quarter of the year, I’ll continue to focus on reinvesting dividends and exploring new opportunities to enhance my portfolio’s long-term growth. Stay tuned for my next update, where I’ll break down October’s dividends and review any changes to my strategy!
I hope this detailed analysis helps you get a clearer picture of my portfolio's performance.
What are your thoughts on the performance of my key dividend payers?
Feel free to leave your comments and share your own dividend strategies!