Third Quarter Dividend Portfolio Review (July-September 2024)
As we move into the fourth quarter of 2024, the portfolio continues to demonstrate resilience and income generation across multiple sectors and regions. Each month provided key insights into the strength and stability of the portfolio, which remains anchored by companies with strong free cash flow and low debt levels.
July 2024: Steady Growth and Strong Performers
In July, the portfolio continued its momentum, delivering solid dividends from key holdings:
Nikko AM ETF: $322
JP MR NSQ ETF: $43
JP MR EQ INC ETF: $289
BABA: $1,425
Total dividends for July: $2,079
This month saw robust contributions from ETFs and tech giant Alibaba (BABA). BABA's $1,425 dividend showcased its financial strength, despite headwinds in the Chinese economy. The steady growth from the ETFs further underscored the portfolio’s diversification, which mitigates risk and maintains income generation across various markets.
August 2024: Diversification Pays Off
August was marked by continued dividend payments across a range of sectors, further emphasizing the importance of diversification:
SATS: $44
Keppel Corp: $135
Singtel: $1,027
Singpost: $67
UOB: $1,837
Sheng Siong: $640
DBS: $647
Wilmar International: $1,494
ICBC: $299
JP MR NSQ ETF: $35
JP MR EQ INC ETF: $294
Parkway Life REIT: $378
I-REIT Global: $1,856
Olam Group: $1,215
Ping An: $1,113
Total dividends for August: $11,080
In August, the portfolio delivered significant dividends from major financial institutions like UOB and DBS, totaling $1,837 and $647, respectively. Wilmar International and Sheng Siong both proved to be strong consumer staples, providing steady income. Ping An also contributed with a substantial dividend of $1,113, highlighting its robust cash flow. This month underscored the strength of the portfolio's exposure to financial and consumer sectors.
September 2024: REITs Dominate the Quarter-End
The final month of Q3 saw the portfolio's REITs taking center stage, contributing a large portion of the month's dividends:
Keppel DC REIT: $724
AimAMP Cap REIT: $908
Capitaland Integrated Commercial Trust: $1,892
Ascendas REIT: $3,772
Starhub: $150
First REIT: $384
JP MR NSQ ETF: $52
JP MR EQ INC ETF: $385
Mapletree L Trust: $283
Mapletree Pan Asia: $523
Total dividends for September: $10,073
September saw significant contributions from REITs, led by Ascendas REIT ($3,772) and Capitaland Integrated Commercial Trust ($1,892). These REITs are central to the portfolio’s income strategy, providing consistent returns even in a rising interest rate environment. Their strong cash flows and long-term lease agreements make them critical components of the portfolio’s stable income base.
Overall Analysis: Strength Through Diversification and Stability
The third quarter of 2024 brought in a total of $23,232 in dividends, with significant contributions from both REITs and financials, alongside tech and consumer staples. Each month offered valuable insights into the portfolio’s performance:
July emphasized steady growth, driven by tech and ETFs.
August showcased the power of diversification, with consumer staples and financials leading the way.
September highlighted the stability and income generation of REITs, which contributed significantly to the quarter’s overall performance.
Key Takeaways:
Diversification and Sectoral Balance
The portfolio’s diversified approach across multiple sectors and geographies has helped it withstand macroeconomic pressures such as rising interest rates and inflationary concerns. By maintaining exposure to stable sectors like REITs and financials, alongside growth areas like technology, the portfolio remains well-positioned for continued income generation.Resilience in High Cash Flow Businesses
The portfolio’s focus on companies with strong free cash flows and disciplined capital allocation, like BABA and Wilmar International, ensures it can maintain a high level of dividend income even as market conditions fluctuate.Outlook for Q4
With the global economy still facing uncertainty, the portfolio’s strong foundation in income-generating assets is critical. I will continue to monitor sector performance and consider rebalancing opportunities, particularly in sectors like telecommunications and logistics, which showed slower dividend growth this quarter.
The portfolio remains well-positioned to continue delivering reliable and growing income streams into the fourth quarter and beyond.