Thursday, December 19, 2013

2013 Portfolio Addition (19 Dec)

I have initiated a small position in SingTel today after it went XD at $3.52. Seeing how bargain emerges in the past weeks, I felt hard to resist doing a bit of bargain-hunting, especially since year-end bonuses will be coming soon. :D

I have been looking to gain exposure to the telco industry since I started building my portfolio at the start of the year, but was put off by its lower yield compared to other dividend payers like REITs. At the initial stage, I looked primarily at the yield as I wanted to gear up my portfolio returns. Now, with all the focus on QE tapering by the US Fed and implication of rising interest rates, it makes sense for me to diversify my portfolio. And telco stocks (although not immune to interest rate hike) does offers consistent and stable dividends. They are also less riskier then REITs, without the high gearing and refinancing concerns.

At my entry price (although I will be missing out on the Jan dividend), I will be expecting an average yield of about 4.7% based on 2013 dividends.

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