As mentioned earlier, I plan to do a monthly update of my Dividend 2030 portfolio.
I first disclosed my portfolio on the 12th of May 2020 and this is how my portfolio looks like now, after 19 days, on 31st May 2020.
(Moving forward, I will continue to show the progress of this portfolio on a monthly basis, with my own basic analysis.)
It’s only 19 days since I uploaded my portfolio in this blog, so there are not much movements in terms of dividend collected. RM 60.80 was received from my investments in Kip Reits. Another RM 26.25 was received from my holdings in IGB Reits.
However, I did go on a shopping spree during this time and so I wish to summarize my transactions. (These are not recommendations and I have done a lot of changes to my portfolio in June. I am still refining my investing strategy but remain conservative and hope to achieve a 5% annual yield from my portfolio, as an alternative to fixed deposit.)
My top ups.
More shares were bought in existing companies in the portfolio, as follows:
- 3,000 shares of Cocoaland (Chocolate manufacturer) and :
- 4,000 shares in Hupseng (Biscuit manufacturer).
- 800 shares in Oriental holdings (A stable and large group, based in Penang. It is involved in the sales and distribution of motor vehicles, manufacturing of engine parts, property development, hotel and education and others)
These are not growth companies. So I don’t expect huge increases in share prices (capital gain). However they are in defensive sectors and are cash rich with minimum debt. They also have decent revenues and profits. Finally they give decent and consistent dividend yields.
My new additions.
New additions to the portfolio are:
- 12,000 shares of Taliworks corporation Berhad at RM 0.85 each. This company is involved in the utilities sector, focusing on water treatment, construction, engineering, highway toll management and solid waste management.
- 43,000 shares of Mahsing at average price of RM 0.478 each. Its a famous residential construction company and is also involved in plastics manufacturing.
- 2,100 shares of RHB at average price of RM 4.74 each. One of the biggest banks in Malaysia.
- 22,000 shares of CSC Steel at an average price of RM 0.838 each. Its involved in marketing and manufacturing of Steel products.
(Note: Mahsing is the only company that was in my watch list when I started this portfolio. The other 3 got my attention through their dividend announcements. I did do my research, study and risk analysis before investing in all companies.)
I disposed off 200 shares in Public bank, because I invested too little and was hoping to identify other companies with better dividend yield. (Public bank will remain in my watch-list and I will consider buying it when the timing and valuation is right).
I disposed it at a loss of RM 112. (This has not been reflected in the analysis above, but I guess it sets off with the dividend received from IGB and Kip reits. I will reflect the loss in full in future analysis)
In the future, I will include some of my missed opportunities to provide a more balanced analysis of my portfolio.
Obviously, for the last 19 days, the missed opportunities were the glove counters such as Top glove, Harta and Kossan industries.
The current glove rally in Malaysia is crazy and I don’t think I will invest in these counters using funds allocated for this portfolio.
The FOMO (“Fear of missing out) effect is for real, and it does affect my emotions at times, because people are really making a lot at this time, by investing in this counters.
Future plans and strategies.
My original intention was to start this BLOG and PORTFOLIO in 2021, giving myself 10 years to grow this portfolio using the power of compounding interest and to show readers my hits and misses.
However, due to the Covid 19 pandemic and the lock down, I thought this would be a great time to start the portfolio and to blog about it. So I rushed into creating this portfolio in March and tested the waters by buying small number of shares in a number of companies.
All I wanted was a portfolio which generates higher returns than fixed deposit interest rates in the country.
I never really thought much about other issues.
Now, after a while, I have a slightly better idea about how to bring this portfolio forward.
(I hope readers will understand that I am not an expert and am also learning along the way as I progress, and this includes those relating to my character, personality and risk appetite with regards to share investments. As such its my humble hope that we can learn and grow together over the next 10 years+ until 2030. I will keep sharing any experience and lessons in this blog)
So for now this is what I plan to do (or am currently doing) to this portfolio:-
- Sell off a number of shares in this portfolio, especially those in which I invested very little, (because the dividend will be even lesser)
- I will try to invest bigger sums in each counter (More than RM 8k in each counter)
- Hope to invest AT LEAST RM 250K in this portfolio by 31st December 2020, anything more will depend on how Covid 19 affects my career this year.
- I will continue to invest smaller amounts into this portfolio from 2021. The capital will be from my active income and will also be reinvesting majority of my capital gains and dividends received until 2030.
I wish to also clarify that this is not my only investment portfolio. I have invested in various investment tools in the past. This is just a new portfolio for me. (So I am NOT putting all my money in 1 investment instrument)
In one of my earlier post, I did share an interesting experience trading the shares of Pharmaniaga. (Please click on the link to read further)
I bought and sold the shares within a day after realizing that I can recover my dividends through capital gains (share price increases).
I am now facing similar experiences with Mahsing and CSC Steel. The shares were bought and sold for good profits. I will share my experiences in a different posts.
If you have read this far, thank you very much. I will give you my next full portfolio update at the end of June or beginning of July.
I have done a number share trades since I started this portfolio which have yet to be shown in the portfolio above. (I will be writing separate posts on this soon, once I reach a certain target.)
In my next post, I will be sharing my experience opening a new share trading account in a one of the local banks in Malaysia.
Please have a nice day.