A Review of 2016

The Year 2016

I achieved a huge milestone during the year 2016. For the first time ever, my annual dividends surpassed the RM10,000 mark.

As most already know, I received a total of RM11,429.55 in dividends last year giving me a yield of 3.84%. In 2015, I received RM7,544.14 in dividends. Guess what? That’s a whopping 51% increase in passive income for me!

That being said, I did increase my gross investments by RM43K.

No.StockQuantityGross Investment (RM)Dividends (RM)Div. Yield
1AXREIT1423624,313.661,049.064.31%
2BONIA3370026,990.33421.251.56%
3CBIP1400022,304.801,280.005.74%
4CYPARK820017,681.66410.002.32%
5ECOWLD900012,960.00--
6HOMERIZ2445014,127.211,100.757.79%
7IGB REIT2280029,986.561,673.075.58%
8MAYBANK316825,723.211,070.004.16%
9NESTLE20013,376.00540.004.04%
10PBBANK60011,100.00156.001.41%
11SCICOM840017,472.00168.000.96%
12SCIENTX380022,267.24950.004.27%
13SUNCON360586.8023.404.06%
14SUNREIT1360019,839.681,172.025.91%
15SUNWAY360011,264.04396.003.52%
16TAANN26009,282.00130.001.40%
17TUNEPRO1080018,503.64540.002.92%
18SOLD STOCKS (Air Asia & AFG)350.50
297,778.8311,429.553.84%

Capital Gains & Dividend Payout

Dividend Magic - Capital Gains

Gross Investment: RM297,777.83
Market Value: RM345,955.92
Dividends (2016): RM11,429.55
Total Gain: 14.69%

For 2016, the unrealized gain for my Freedom Fund was RM41,416.19 giving me a 10.85% yield. Couple that with my 3.84% dividend yield, total gains for 2016 totals up to 14.69%. Total market value of my portfolio now is RM345,955.92.

The year 2016 has been pretty awesome if I do say so myself. However, my main focus has and will always be on that 3.84% dividend yield. My main aim is to increase that yield every year.

REITs

Last year in terms of dividend payments, all the REITs did well for me. The top ones would still be Sunway REIT as well as IGB REIT for me. Somewhat of a disappointment would be Axis REIT but their refurbished properties should be bringing in higher income in 2017.

Banks

My purchase of Maybank as well as Public Bank has been fruitful. They’ve each given me a 4.16% and 1.41% yield respectively. (Public Bank’s is low here because I only received 1 dividend payment).

I also disposed of Alliance Bank’s shares in December as the shares have had a lackluster few years and I don’t see any changes being made. I took a painful 16% loss on that. The funds will be put to better use.

My Favourites

Homeriz and Scientax, the two golden eggs in my basket have been providing not only in the form of dividends but in capital gains as well. Scientax has continued to soar in 2016, as of today (8 Jan 2017), I have an unrealized gain of 130%.

Disappointments

Thankfully, last year the only major disappointment came from none other than Bonia Corp. I was previously up by more than 100% but currently making a loss of 22%. I’ll continue to maintain my position with Bonia because they do have sound management and I foresee a big increase in sales in the next few years. It might be time to top up early this year to average down.

Goals for 2017

Moving forward, 2017 will be the year I achieve RM12,000 in dividends. Even without adding to my portfolio, the magic of compounding will see me achieve that target. And I’m sure everyone knows what RM12K a year in dividends mean.

Yes! That’s an average of RM1,000 cash for me. It has always been a long term goal of mine and finally it is within grasp.

With additional funds being reinvested, I hope to achieve RM15,000 in dividends next year while at least maintaining my 3.84% yield. Hopefully increasing it to 4%? A long shot I know.

4% Dividend Yield

That coveted 4% yield. I’ll be focusing more on REITs this year whose high yields will help me achieve this target.

For the readers

For you guys and girls, I’d like those of you that hasn’t started investing to make it a point to do so this year. The first step is always the hardest but let me assure you it will be rewarding. Let 2017 be the year you get your finances in order.

I’m here to assist you. If you have any questions, no matter how trivial you feel they are, please fire away!

End.

So here’s to an awesome 2017 to everyone! Onwards and upwards!

Thanks for reading!

Dividend Magic - We can do it!

 

Dividend Income – September 2016

Dividend Income

First and foremost, I’m delighted to report that I’ve officially achieved my 2016 goal of RM8,500 in dividend income. I’ve raked in a total of RM9,044.32 this year from dividend income alone. In fact, it is entirely possible that I may be able to shatter the RM10,000 mark this year. I’ll keep my fingers crossed.

The total dividend income received for the month of September crossed the one thousand ringgit mark at RM1,172.15. The five companies that generously contributed to this amount are: Axis REIT, Sunway REIT, Homeriz, Sunway Construction and Nestle. Their individual amount and yields for the year so far are as below:

Axis REIT – RM263.65 (3.23% yield)

SunREIT – RM270.50 (4.48% yield)

Homeriz – RM489.00 (7.79% yield)

SunCon – RM9.00 (4.61% yield)

Nestle – RM140.00 (2.99% yield)

Unfortunately I’m unable to get to my mail the past few weeks so the relevant pics will be updated in due time. I know some of you can’t wait to see more of my Iron Man collection but please bear with me (Yes there are several more models to be revealed!).

Moving onto the total yield of my Freedom Fund – Total dividend yield for the year stands at 3.14%! Yes we’ve yet again crossed an important milestone – the 3% fixed deposit mark. I know some of you may argue that FDs under promotion offers way higher interest rates, but lets agree to stick to 3% shall we?

How is the Freedom Fund doing so far?

With it being the third quarter and all, I guess I should let everyone know that the Freedom Fund is doing good. For the year so far, unrealized capital gains of the portfolio stands at 9.75%. This preliminary figure is pretty good considering the volatile year we’ve had so far. With the end of 2016 so close, I will hope for a good 4th and final quarter to conclude the year. There will be a more comprehensive summary come December.

I’ve recently added a page on Dividend Investing. Please check it out!

Thanks for reading.

P.S. A good number of you have reached out to me on financial planning since my last post. I would like to offer my apologies to some of you whom I’m unable to meet yet due to my schedule. Hope to meet up with you guys soon over the next few weeks!