Happy new year and hope you are going strong there !!!!!

Before we proceed with the portfolio update,

A reader, who is an Ex ACCA student of mine asked me about my ultimate goal for this portfolio. In other words, what do I want to achieve on 31st December 2030.

After spending sometime thinking and reflecting……This is my ultimate goal for this public portfolio:-

“My goal is to build Dividend2030 (portfolio) to RM 1 million in value before 31st December 2030 (in 10 years), generating a 6% dividend yield, translating to RM 60,000 dividends per year and RM 5k passive income per month from 2031 onwards.”

While I am not sure how the market sentiment will be in 2030, I will use this as a benchmark to keep track of my progress for the next 10 years. (For this portfolio, dividend is more important than portfolio value)

Generally, I aim to achieve this goal through:

  • Contributing my own capital through my earnings and savings over the next 10 years, and
  • Reinvesting any capital gains and dividends collected from this portfolio.

This means that I will need to put in maximum effort to earn and save more, so that I can invest more to achieve this goal. Furthermore, I must be disciplined enough not to use the dividends and capital gains for my personal expenses. (Instead, they should be reinvested to grow the portfolio and make use of compounded returns)

I will mention this goal in every blog post moving forward, as a reminder, and to track my progress.

Let’s get down to business:-

This is the first update for Dividend2030 portfolio for 2021.

Source: Cimb I trade account (The figures in purple are my “free” shares.)

Summarized analysis

  1. The capital for this portfolio remains at RM 300,000 (RM 250k in 2020).
  2. Dividend target for the year is RM 15,000.
  3. The latest portfolio value is RM 326,430 (RM 335,398- RM 8986). The unrealized gain is RM 26,430.
  4. So, my progress towards the ultimate goal of RM 1 million is around 32%.
  5. Dividends collected amount to RM 2,620/ RM 15,000 ( 17% progress). There are no realized capital gains or losses this month.
  6. Cash balance is RM 150, which means I am fully invested in this portfolio.
  7. There are “free” shares belonging to 3 companies in my portfolio, and they are Hupseng, Kip reit, and Attrium reit. Free shares are those that I invested using realized gains and dividends collected previously.
  8. I will be looking to add more “free” shares in 2021. (Hoping for at least 2 more).
  9. While I didn’t sell any shares in January, I added more positions in Supermax and Top glove, reducing the average purchase cost. This was during the “glove crash” on January 4th 2021. The crash happened due to the lifting of Regulated Short Selling (RSS) by Bursa.
  10. This month, I invested in Zhulian, a multi level marketing company. This company is not growth oriented, is defensive, cash rich with minimum liability, it is a good dividend paymaster.

Dividend highlights

  1. So, it has been a good start to my dividend journey with RM 2,620 dividends collected to-date. This is a 17% progress towards my RM 15,000 goal for the year.
  2. Main contributors include RM 1,500 collected from Apollo food holdings and RM 825 from Top glove.
  3. I am expecting much more from Top glove since the management decided to move towards a quarterly dividend payment from FY 2021 and it has committed to pay 70% of it Profit after tax as dividends for the next 3 quarters. (The previous policy is 50% of its Profit after tax).
  4. I am expecting more than 10% yield from Top glove this year.
  5. 200 free shares was received from Supermax, since management declared a dividend in specie of 1 free share for every 45 shares held in 2020. I held 9,000 shares then and so was entitled to 200 shares. I will recognize this as dividend if, and when I sell off the shares.
  6. Received my first COMPOUNDED returns from a free share. I invested my previous gains into 11k shares of Hup Seng (thus making it free) and now this has generated an extra RM 200 in dividends. My first ever compounded returns and hoping for more to come.
  7. Moving forward, in the month of February, I am expecting more dividends to come from Kip reit (RM 0.0159 cents per share), Atrium (RM 0.03 cents per share), Zhulian (RM 0.08 cents per share (including special dividend of RM 0.05 cents) and Supermax (RM 0.038 cents).

Concluding thoughts

Its 2021 and we are still very much fighting the Covid-19 crisis. The discovery of vaccines has offered a glimmer of hope that this pandemic will be end in due time, and the economic situation is expected to get worst in the coming months.

I am a freelance lecturer and am currently doing online classes since March 2020. I really miss going to be back classrooms and meeting my students for face to face class. Online classes has given me a lot of freedom and flexibility, but as an educator, I still miss that personal “touch” I have with my students. (To be honest, I am feeling a little bit lonely, and have never experienced this before in my life)

The last time I worked as a fulltime employee was in 2009, and I have been a freelancer since then (for 11 years). As far as income is concerned, uncertainty is something I have learned to cope with.

In fact the uncertainty is what gives me the excitement for me to work hard in the multiple sources of active incomes I have created.

Having said that, I am grateful to at least have a job, as education industry is one of the most crisis proof industry during economic turbulence, but I have to admit, there has been some impact on us too.

I am also a consultant. I managed to secure 2 clients for SOP (Standard operating procedures) clean up, but both the jobs have been delayed due to MCO 2.0 introduced in Malaysia. In fact, 1 client is considering to cancel the job due to budget constraints but negotiations are currently ongoing. (Time to test that negotiation skills I learned all these while)

Nevertheless, I hope to continue maintaining good personal finance habits in order to increase the capital to grow this portfolio. I am also looking at starting a second portfolio for the purpose of blogging and current thought is towards starting a US equity portfolio (I am already having exposure to Tesla since 2020, before the bonus split).

Hopefully, I will be able to provide more updates soon.

Thank you for reading so far, stay healthy, safe and see you for the next update.

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