Portfolio Update May 2016

We have officially reached the halfway mark of the year, and an update for the portfolio is in again! May was quite a busy month for me, making several transactions. Sold off all my holdings in NeraTel due to the announcement that they were selling off their payment solutions business. Also bought Kingsmen Creative shares on 2 seperate occasions, taking the opportunity to average down. Bought more Omega Healthcare Reit for my US stocks as well.

In addition, took dividends in ST Engineering, NeraTel, Hock Lian Seng, LMIRT and First Reit for SGX, and OHI for NYSE.

SGX:

Stock Name	Units	Cost	Cost (Per Unit)	Dividends Collected
First REIT	3301	$4,128.07	1.251	$225.25
Keppel DC REIT	1000	$937.00	0.937	$68.40
Saizen REIT	2000	$1,724.21	0.862	$2,201.60
iReit	400	$225.11	0.563	$11.41
LMIRT	700	$244.59	0.349	$23.57
Hock Lian Seng	2800	$1,146.67	0.410	$142.00
OCBC	400	$3,959.45	9.899	$54.00
ABF Bond Fund	300	$343.22	1.144	$7.95
KingsMen Creative	1200	$950.00	0.792	$5.00
NeraTel	0	$0.00	0.000	$20.50
Accordia Golf Trust	1500	$876.58	0.584	$20.88
AIMS AMP Industrial REIT	500	$659.65	1.319	$8.55
ST Engg	200	$563.35	2.817	$20.00
Singtel	100	$378.90	3.789	$6.80
Fraser Centrepoint Trust	500	$996.93	1.994	$0.00

Bought:

300 shares KingsMen Creative

Sold:

1300 NeraTel

Total dividends received*: $703.91 (excluding special dividend from Saizen)
Dividends received in 2016: $130.97 (excluding special dividend from Saizen)
Yield on cost: 4.21%

*DRIP Shares:
101 First REIT

NYSE:

Stock Name	Units	Cost /USD	Cost (Per Unit) / USD	Dividends Collected
Berkshire Hathaway	2	$271.45	135.726	$0.00
BP	3	$111.75	37.250	$2.37
Omega Healthcare Reit	6	$191.93	31.988	$4.80

Bought:

7 share of Omega Healthcare Reit

Total dividends received: USD$7.17
Dividends received in 2016: USD$7.17
Yield on cost: 0.89%

Purchase: Tai Sin Electric

After selling off NeraTel, I shopped around for another company to take its place within my portfolio. Enter Tai Sin Electric.

A company selling cable and wire products, Tai Sin operated mainly in the South East Asia region. Looking at the financial report, Tai Sin shows remarkably consistent performances in the past 5 years, with revenue, Return of Assets, Return on Capital and EBITDA staying within a narrow band. While this might not be appealing to a growth investor, it shows a stable, matured company which allows for a stable dividend yield, ideal for an income investor like me. indeed, for the past 4 years the dividend has been a steady 2.1 to 2.2 cents per year, translating to a dividend yield of 6.92%. However one thing to take note of would be that the payout ratio has increased quite dramatically, from 22% in 2012 to 57% in 2015.

At the price of $0.33, Tai Sin shares are selling at a P/B and P/E ratio of 0.931 and 7.851 respectively, which are relatively cheap valuations for a stable matured company. Tai Sin also has no long term debt, which adds a margin of safety a la Ben Graham.

Business outlook for the company looks good, with the opening up of the Myanmar economy (new buildings etc), as well as projected increase in government spending on infrastructure and construction in Singapore. Buildings need electricity, and electricity requires cables and wires, positioning Tai Sin to make a good profit, should they secure projects.

In buying Tai Sin, I have loaded up on a company which in the near to mid term is likely to experience some growth, a dividend yield that is reliable, and a certain margin of safety. Doesn't hurt that the dividend yield in this case is higher than NeraTel's. Will be keeping an eye out for the stock prices and accumulate as and when weaknesses strike.

Vested with 2000 shares.