A Review of 2015

The Year 2015

Like most years, the year 2015 had its ups and downs.

My stock holdings as at 31 December 2015 can be found in the table below.

No. Stock Quantity Gross
Investment
(RM)
Dividends
(RM)
Div. Yield
1 AFG 2,100 10,038.00 302.40 3.01%
2 AIR ASIA 4,300 7,138.00 0.00%
3 AXREIT 14,236 24,313.66 773.89 3.18%
4 BONIA 33,700 26,990.33 421.25 1.56%
5 CBIP 10,000 14,425.00 600.00 4.16%
6 CYPARK 8,200 17,681.66 410.00 2.32%
7 HLFG 700 10,528.00 266.00 2.53%
8 HOMERIZ 8,300 14,127.21 624.05 4.42%
9 IGB REIT 22,800 20,030.56 612.56 3.06%
10 MAYBANK 1,500 12,450.00 0.00%
11 NESTLE 200 13,376.00 610.00 4.56%
12 SCIENTX 3,800 22,267.24 680.00 3.05%
13 SUNCON 360 0.00%
14 SUNREIT 13,600 19,839.68 685.75 3.46%
15 SUNWAY 3,600 11,264.04 1,332.00 11.83%
16 TUNEPRO 10,800 18,503.64 226.24 1.22%
17 UOA REIT 7,000 10,920.00 0.00%
254,382.62 7,544.14 2.97%

*Sunway Berhad paid out a one-time special dividend when its subsidiary Sunway Construction went public in 2015, hence the 11.83% yield.

You may notice that some of my investments gave me a 0% dividend yield, this is because I purchased them recently and did not receive any dividends from them with the exception of Air Asia which doesn’t pay dividends.

Capital Gains

Dividend Magic - A review of 2015

Photo source: insidetherockposterframe.blogspot.my

As at 31 December 2015, my portfolio registered an unrealized gain of 6.5%.

Now this figure might be important to some of you but for me, dividends and its growth are what matters to me. Combined with my dividend yield of 2.97% for 2015, my portfolio’s total gain was a cool 9.5%. Not too high compared to some of the players out there, but I’d take a steady growth in my investments every year over erratic volatility in them any time.

 Top 3 Performers

  1. Scientex Berhad
  2. CBIP Berhad
  3. Homeriz Berhad

I will be actively looking to add more of these 3 stocks to my portfolio in 2016 provided the price is right. Scientex (which is covered here) and CBIP Berhad have both delivered consistently. Homeriz’s financials has been helped greatly by the devaluation of the ringgit which saw my investments double in 2015.

Disappointments

  1. Bonia Berhad
  2. Cypark Berhad
  3. Alliance Financial Group
  4. Air Asia
  5. Tunepro (formerly Tune Insurance)

Collectively, these 5 companies cost me RM14K in unrealized losses. However, the dividends received from them were pretty solid with the exception of Air Asia and Tunepro. I will continue to hold on to them provided the fundamentals remain.

Dividends

I received RM7,544 through dividends alone in 2015, surpassing my target of RM6K per annum. The dividends earned will all be reinvested into the portfolio, letting the 8th wonder of the world work its magic – compound interest.

My next target would be RM8,500 per annum translating to just over RM700 per month, which should in theory be able to cover my most basic living expenses (if I live frugally).

Ultimately, I aim to be able to cover all my living expenses through dividends alone.

I view my investment portfolio as a young tree, with each stock its own branch, branches which I would think long and hard before I’d ever consider chopping them off. Each and every branch of this wonderful tree produces bountiful fruit – in the form of dividends which is what I’ll eventually live off of, choosing to pluck the fruit and leave the branches intact rather than cutting the branches. What with me working and all now, I am fortunate enough to be able to replant those fruits instead of consuming them – reinvesting my dividends every year will eventually snowball into a huge sum in the long term.

Patience is very tough at times, but my progress thus far is proof that patience and persistence works. Since I started investing in 2014, my passive income has been steadily increasing every single year. It takes a little time for this to start noticeably working, but the additional cash flow is real.

We Can Do It!

CC Image Rosie the Riveter courtesy of The U.S. National Archives on Flickr

Fin

 

11 thoughts on “A Review of 2015

  1. HI divvy…can u recommend any stocks that can be kept for long term for capital appreciation purpose?

  2. I figured because my sister appeared to be attending college while doing so
    I was I might qualify for much more financial aid so i hoped the quantity I would
    need to borrow can be much more realistic this time Then,
    merely adding up the parts gives the overall present price.

  3. Hi,

    Am bit confuse with your listing – guess they are not annualized yield but only those dividends you have received?

    Realized you got the nestle door gift with 200 shares, is that the min they set? Could we just own 100 shares and collect that too? ( not to shout about but it seems fun :p)

    • Hi Lynn,

      They are dividends received in 2015, for the year, regardless of whether it was in January or December. No need for annualizing.

      Well, I’m not sure if 100 is little, Nestle costs in the region of RM74 currently. So 100 shares would be RM7,400.

  4. Hi, Div.Magic! Looks like we are travelling the same road together. For 2015, I have also received about RM6,700 in dividends from my shares. Reading your blog makes me want to start one with similar theme about investing and passive income 🙂

    • Hi bud,

      Good to hear from you. Yea you should really consider dividend investing. What are you mostly invested in currently? Growth stocks? If so, I think your portfolio value would be much higher than mine. =)

      • Currently I am invested in:

        Local
        1) Maybank
        2) Sunreit
        3) AmFirst Reit
        4) Tower Reit
        5) CIMB
        6) RHBCap
        7) Magnum
        8) Padini

        Overseas
        9) H-Share ETF (Hong Kong listed ETF) – HK dollar dividends 😀

        Yeah, I am pretty big fan of banks and REITs. CIMB and RHB was recently bought. Maybank was bought a long time ago and still holding for its great dividend.

        The H-shares ETF is pretty cheap at the moment but HKD is strong on the other hand…

  5. Good sharing on your portfolio and good performance for 2015! Seriously, well done bro!

    It would be good if you can share your thought process on why you chose to buy some of the new counters like Airasia, Maybank, Suncon (i think there is an error here since the qty is quite little with no amount) and UOAReit instead of averaging up or down on some of your existing counters.

    Plus why you didn’t sell or average down for some of your lost making counters like Bonia, AFG, Cypark, Airasia and tunepro. If the yields are good and can be sustained, then should average down right?

    Do you have any plans to sell some of your good counters like Scientex and Homer to purchase other counters with good or better dividend yield prospects?

    • Hi Mike,

      Ok firstly, I found Airasia and Maybank to be undervalued. I believe Airasia has an amazing team running it and I’ve met and got to know some of them during my internship some years back. The company should see them returning to their profitable ways given some time.

      As for Maybank, even at roughly RM8.3 now, it should be a good buy, yields are around the 5-6% mark. I was going to go for Public Bank as I’ve been eyeing it for some time but Maybank seems a better choice now.

      The figures for Sunway Construction weren’t a mistake, they came together with my Sunway shares when Suncon went for an IPO – basically free shares. On to UOA Reit, I’ve actually sold it a few days back earning a 1% quick profit. My plan is to keep adding REITs to my portfolio and it is my hope that I’d be able to have around RM500K worth of REITs in my portfolio.

      As for averaging down, I’ve been doing just that, mostly for Bonia and Cypark. Being growth stocks, Airasia and Tunepro don’t fit into my plans for dividend income.

      I’m considering disposing off some of my shares that haven gone way over their fundamental value, but then again I’m not currently pressed to do so as I still have some idle funds lying in wait.

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