• jeffreyleezq

My Portfolio & Dividend Updates (End July 2020)

Monthly update on my Portfolio percentage breakdown and dividends received (if any).

It’s near the end of the month, so it’s about time again to do my monthly portfolio update. (:

My portfolio listed here consists purely of equities only, and excludes social security (CPF & SRS), debt instrument holdings (i.e. bonds & SSBs etc), emergency funds, as well as personal savings.

As such, any returns from the excluded items above (e.g. dividends from CPFIS, bond coupons and interests from CPF/savings accounts etc) will be excluded in the total amount in the 'Dividend Updates' section below as well.

Portfolio Breakdown by Securities

For the month of July, I added shares of Phillip SING Income ETF (OVQ) into my portfolio. With this addition, local counters now account for approximately 15% of my equity portfolio.

OVQ is an ETF that tracks the Morningstar Singapore Yield Focus Index, which comprises of 30 SGX listed high-yielding companies screened for good quality and sound financial health. The index calls this the 'quality income strategy'.

However, unlike its 'counterpart' the Straits Times Index (tracked by ES3) which is market capitalisation weighted, the Morningstar Singapore Yield Focus Index has a maximum cap of 10% for each holding. Given this, the OVQ might be more suitable for people who feel that the ES3 is too heavily reliant on the financial sector (OVQ: 36% vs. ES3: 43%), since the financial sector makes up the bulk of the Singapore market.

The OVQ is also more weighted in the REITs (OVQ: 28% vs. ES3: 13%) and telecommunications (OVQ: 13% vs. ES3: 8%) sectors, which tend to be more resilient and pay steady dividends. As such, the OVQ is more defensive in nature compared to the ES3.

Furthermore, you also see stocks like the Sheng Siong Group Ltd and Haw Par Corp Ltd that have market capitalisations too small to make it onto the Straits Time Index, but are included in the Morningstar Singapore Yield Focus Index due to their sound business quality and stable dividends - another plus point to me for diversification within the local context. As usual, please do your own due diligence - this is not a buy call.

For now, I think I am more or less done with my entry into the market, and I would likely keep my remaining funds for some liquidity on hand and for the next time when I spot a good buy.

You might have also noticed that I no longer hold any VOO, QQQ and MTUM. That is because I sold off all of them and instead bought their Ireland-domiciled counterparts: VUSD, EQQQ and IUMD respectively. I got lucky as I managed to sell off the US-domiciled ETFs at a higher price and acquired their equivalent Ireland-domiciled ETFs at a lower price when the market went south briefly, and in turn making a small sum just enough to cover the trading fees of this "buy-sell conversion" and to make a small profit in the process, which I was super delighted about.

With the new "conversion", my dividend payment from my US counters will rise by about 15%, which is great. And if all goes well, I should be on track to a monthly average dividend of approximately $600 in less than two years from now. Yay.

I also took the opportunity during this 'buy-sell conversion' to re-balance my portfolio with a slightly higher position of EQQQ and IUMD. Reason being that I am optimistic that they will outperform VUSD in the long term since their holdings are mostly growth stocks, many of which are technology companies well-positioned to do well in my opinion.

On a side note, I can't seem to find any Ireland-domiciled counterpart for my VOOG, so I would be keeping it in my portfolio for now. Or maybe I didn't search hard enough. Either way, if anyone somehow knows an equivalent Ireland-domiciled VOOG please let me know and I would really appreciate it.

Dividend Updates

Received a small dividend payout for the month of July, since July is in general not a common dividend payout month for most stocks and derivatives.

My total amount of dividends received since the start of 2020 now stands at S$2,326.75, giving me an average dividend amount of S$332.39 monthly from January till July 2020.

Note: Dividends are recognised after ex-dividend (EX) date.

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Disclaimer: All information contained herein this blog is solely the writer's personal opinion, and does not constitute an offer, recommendation or solicitation of an offer of any kind. Readers are also advised to do their own due diligence, and to consult a financial adviser for any financial advice.