Denver’s Portfolio

Received dividends from prime US reit. USD 0.02(dividend) 0.0115(capital) 0.0096 (advance distribution for rights issue) 1000 units Total dividend in USD $41.1 Total dividend in SGD $59.72(exchange rate of 1 USD to 1.4532 SGD)

I bought 500 shares of ST Engineering today at $2.80. I have been watching this solid blue chip stock for quite some time and decided to pick up this solid blue chip stock into my dividend stocks portfolio Based on the 2019 EPS, STE is trading at PE of 15. I am not aiming for a rebound, it will be Long term play for me. A PE of 15 is reasonable for me. At dividends of $0.15 per share, it will be a yield of 5.3%. For a solid blue chip stock that has a ROE of 26 with dividend yield of 5.3 percent. I am quite comfortable to hold this stock for Long term. The moat is strong as ST engineering is very established in Singapore. Recent acquisitions also helps to bring in more value for shareholders. Furthermore, STE has an order book of 15.3 billion. In the current situation of the pandemic, with the company secured a large order book can help to bring in some guaranteed profits which is beneficial to shareholders in this time of uncertainty.

My portfolio down about 20% as of 16 Mar. I found out there are some learning points for me to take note of: 1) Some stocks are bought at a premium e.g. Sph reit. 2) Catching falling knives: e.g. cdg, I can able more patient and monitor the stock for some more time. 3) Did not have a substantial warchest, I have to wait for my pay in order for me to buy more stocks.  Future outlook: The market is going to recover. We do not have an issue of liquidity like the 2008. Once the pandemic and oil issues are resolved, market will be back to normal. Stocks in my watchlist: Koufu: Potential growth, price drop a lot, now is around 11-12 PE. Sheng Siong: Strong growth, PE around 20 right now.  Investors gives this kind of strong growth stocks a high PE of 20-25. Lower than 20 PE will be a steal provided that the growth is substainable. Haw Par: Value stock, looking for capital gain, currently 0.7 PB DBS: Solid blue chip, always trading at premium, now slightly below 1