The earning season for the quarter is coming to the end. While I have been following the earning release, I wasn’t in the mood to write about them until now. And no I am not going into details but just highlight the key things that caught my attention. I will write about my income counters in this post. And in Part 2, I will be looking at my growth counters.
In general, it has been a good quarter for my income counters. All the 8 Reits that I held have reported a stable or stronger quarter. It’s hard to compare to previous year due to the pandemic but outlook for all eight of them continue to remain positive. However, their price have been under pressure due to the upcoming interest rate hike. I continue to believe that the managers of the above Reits are able to handle the various challenges and these Reits would continue to provide me with increasing dividend in the years to come.
For none Reit income counters, Micro-Mechanics and UMS continue to ride on the tailwind of semiconductor sector and both increased their interim dividend. It was a pleasant surprise, especially for UMS when it just gave on new bonus shares in the previous quarter! The Hour Glass produced an exception good set of results with its earning up by a whooping 110%! While it did not increase its interim dividend, I am now slightly more confident that the management is going to keep this practice of giving out interim dividend. I am hoping for an increase in dividend for the year end or at least some form of special dividend.
On the other end Venture, Boustead and Sheng Siong have a steady performance. They have mixed performance but based on latest results, they should be able to at least their final dividend. Boustead surprised with an increase with its interim dividend even though the results is flat. Finally, for the banks DBS and OCBC continue to do well and DBS maintain its quarterly dividend. As for SGX, its performance is mixed but it continues to churn a stable quarterly dividend.
To conclude, I am happy with the income counters’ performance. On average, their payouts have increased over the previous year and I should see an overall increase in dividend collected this year. Coupled with some purchases along the year, I am currently expecting dividend for next year to be up by 15%-20%.