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 – July & August 2016

July & August Dividend Income

First of all, my apologies again for missing the dividend income update for the month of July. Now, on to more important matters.

I received a total of RM1,938.99 in dividend income for both July and August, as detailed below:

July

CBIP – RM420.00 (5.74% yield)

Dividend Income - CBIP July

August

Scientex – RM456.00 (8.53% yield)

PBBank – RM156.00 (1.41% yield)

IGB REIT – RM906.99 (5.58% yield)

Dividend Income - Scientex August

Dividend Income - Public Bank August

*Note that at the time of purchase, PBBank shares had already paid out their first trench of dividends.

Final Dividends

This will be the final dividend paid by all the companies mentioned above for 2016. I’m pretty satisfied with the yields from all 4 companies. Hope to see them continue to grow in the coming years and see my yields increase as the share price go up.

Also, I’m currently waiting on more opportunities to add Scientex and more REITs to my Freedom Fund.

Some Short Term Gain

In August, I’ve also been busy making some quick profit from the market. As most of you know, I’m mostly a long term investor and have generally stuck to my principles. However, I’ve been known to dabble in short term investing ie. trading when I’ve done my due diligence and research. I’ve made a RM900 or 13% gain in a short span of 6 days by trading in DESTINI.

I will not encourage average investors to pursue this highly risky branch of investing without first knowing everything about it and then some. So, with this trade, I’ve added an additional RM900 to my war chest which I hope to make use of in the near future.

Conclusion

Total dividends received currently stands at RM7,872.17 with a yield of 2.74%.

As an early comparison between 2016 and 2015’s dividend yields, I’ve already surpassed last year’s dividend yield of 2.7%. Looking forward to a bountiful final 4 months of 2016.

Finally, I hope everyone’s investments have been doing well and continue to. Thanks for reading, Cheers!

PS: I’ve been away from home for a bit and therefore haven’t had the chance to snap the dividend voucher from IGB REIT. Will be adding them when I get back.