The first month of the bull year and I have zero transaction! I have an urge to rebalance my portfolio in the middle of February but as many companies are reporting their earning, I decided against it. With the market correction at the end of the month, going with my gut would be a great decision this time round. Oh well, that’s hindsight. Still going to feel positive about my decision and am hopeful that it leads to better return in future.

Collected 1.9k dividend from Parkwaylife, Micromechanics, SGX and Apple which is about 20% lower than last year’s. Nothing to be alarm about as some of the payout will come in early March instead of February.

Companies Update

Income Counters

CounterPositionAvg Price*Dividend (yoy)Current Yield
AReit3.5%$2.9614.688 cents (-6.1%)5.0% @ $2.94
DBS3.8%$21.4087 cents (-31%)2.7% @ $26.64
OCBC4.3%$10.3331.8 cents (-40%)2.9% @$10.99
UMS2.2%$1.013.5 cents (-13%)3.0% @$1.15
Venture4.1%$16.4375 cents (7%)3.9% @19.20

*Average price is based on 2020’s new portfolio

With the exception of Venture, all reported a lower dividend this year compared to FY2019. Venture continued its recovery in the second half of the year and looks set to do well for the upcoming year. I expect a similar payout from them for FY2021. UMS on the other hand handed out a disappointing 1 cent dividend for Q4, compared to 2.5 cents last year. Looking at the full year, the drop is not as drastic. Given that the impairment is one-off, there is a chance of higher dividend next year.

The banks followed MAS guideline and gives out 60% of 2019’s dividend. With lower provision expected for the coming year, I am hopeful for an increase in dividend. AReit’s revenue, NPI and DI all increased but due to a larger shareholders base and current covid situation, DPU dropped. With the completion of the various acquisitions from the money raised, I expect an increase in DPU for the coming year.

I might add more AReit and Venture when I have the fund.

Growth Counters

CounterPositionAvg
Price*		Rev
(yoy)		NP
(yoy)		FCFNP
Margin		PE
AEM2.4%$3.04$519
(60.6%)		$97.6
(85.0%)		$104
18.8%11.5
@ $4.03
ANET2.2%$203$2320
(-3.9%)		$630
(-27%)		$720
27.2%35
@ $280
IFAST10.7%$1.00$179
(36%)		$21.2
(122%)		$28.9
11.8%76
@ $5.69
SHOP2.8%$761$2900
(85%)		$320
(NM)		$383
11.0%495
@ $1281

Numbers are obtained from Morningstar for US counters

AEM, IFAST and SHOP had a blazing year and look set to continue their growth for this upcoming year. While they might not grow as fast as last year, the expected growth of 30-60% is still amazing. With IFAST occupying more than 10% of my portfolio after its jump in its share price, I have written a report about it.

Arista Networks finally reported a quarterly growth after it has struggled with the withholding orders from the Cloud Titans last year. Based on the conference call, the Cloud Titans’ order (36%) do not seem to have improved too much yet but are compensated by the growth the segments of enterprise and finance (36%), and specialty cloud and service providers (28%). Going forward, it looks like the Cloud Titans will be a stable contributor and growth will come from the other two segments. Seeing how they have progressed and continue to innovate over the past few years, I am confident of their growth runway and will wait patiently for them to cross future inflection points to bigger things.

With my growth counters overpowering my income counters, I am unlikely to buy into them at this moment. In fact, I might do some re-balancing in the coming months to bring my income-growth counters ratio back to 60:40 level.

Ending Remarks

I am satisfied with the companies results for the latest quarter and things do look slightly brighter for the rest of the year. The correction towards the end of the month wiped out the gain for this month but year to date, portfolio is still in the green. More details will be released in next month’s Q1 report.

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