Review of 2017

The Year 2017

Back in 2016’s review, we surpassed the RM10,000 in dividends milestone. In 2017, we’ve rocketed past the RM15,000 mark AND surged past that sweet 4% yield.

To be precise, the Freedom Fund, in 2017, achieved a dividend yield of 4.62% totaling RM15,905.71 in dividends.

If you’ve been keeping track, that’s a 39.2% increase in dividend yield y-o-y, aided by both the increase in dividend payouts by the companies I’ve invested in and the RM30K additional investments made throughout 2017.

My portfolio is tabled as follows.

No.StockQuantityGross Investment (RM)Dividends (RM)Div. Yield
1AEONCR170022,570.05359.211.59%
2AIRASIA1000029,425.001,980.006.73%
3AXREIT2023634,334.421,619.514.72%
4CBIP1400022,304.80840.003.77%
5CYPARK820017,681.66426.402.41%
6HOMERIZ2445014,127.211,222.508.65%
7IGB CORP4,00011,480.00200.001.74%
8IGB REIT2280029,986.561,785.705.96%
9MAYBANK325226,527.861,761.726.64%
10NESTLE20013,376.00540.004.04%
11PBBANK60011,100.00354.003.19%
12SCICOM840017,472.00756.004.33%
13SCIENTX9,20035,483.481,312.003.70%
14SUNCON360586.8019.803.37%
15SUNREIT1360019,839.681,204.556.07%
16SUNWAY360011,389.04522.724.59%
17TENAGA100014,120.00440.003.12%
SOLD STOCKS -
BONIA, ECOWORLD, TAANN, TUNEPRO
561,60-
331,804.4515,905.714.69%

The GAINS

Dividend Magic - Capital Gains

Gross Investment: RM336,812.68
Market Value (2017): RM425,664.94
Market Value (2016): RM345,955.92
Dividends (2017): RM15,905.71
Total Gain (2017): RM65,364.73 (18.9%)
Total Annualized Gain: 13.03%

I will be using the internal rate of return to calculate my average annualized gain moving forward as I think this is the best way to keep track of investments.

In terms of capital gain in 2017, in simple terms, I made RM49,459.02 on paper. This is after deducting the RM30,250 additional gross investment I made throughout the year.

Adding the RM15,905.71 I received in dividends, we get a total of RM65,364.73.

Achievement Unlocked – 4.62% Dividend Yield

Capital gains aside, my main focus has and will always be on my dividends.

We set ourselves a goal of RM15,000 for 2017 and I’m extremely pleased to have reached it. Even more important, we’ve now gone above the 4% dividend yield.

 

I love my stocks!

I take huge pride in the ownership of each and every stock in my portfolio. It’s extremely important to love and understand the businesses you own.

I’ve got banks, an airline, property developers, manufacturers, I own shopping malls and office towers, I’ve got my fingers dipped in the waste-to-energy business.

Heck, I even have a (very small) stake in providing you with the electricity you use every day.

 

2018 Goals

Moving forward, maintaining that 4.5% yield will be the goal.

Even without additional investments on my part, the current RM15,000 a year from dividends alone, reinvested, is a significant sum in and of itself.

The main idea is to reinvest with a plan. There will be stocks going cheap with the upcoming economic uncertainty, both globally and locally.

 

END.

As 2017 comes to a close, I hope everyone has in one form or another started investing. Be it stocks or any other assets. May 2018 be good to us all.

Sekian. Thank you for reading! Onwards and upwards!

Here’s Rosie the Riveter again for inspiration. =D

Dividend Magic - We can do it!

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!