Reviewing my portfolio cost yield

New year new beginning.

 

Decided to do a review on the cost yield of my individual holdings since it is one of the most important metrics to me. I'm an income investor afterall.

 

I also looked at the recent trend of the individual counters to see if they are paying more (or less) over the years.

 

Not looking at other fundamentals for this exercise. Any fundamental analysis can easily take up a blog post of its own.

My target yield is minimum 5%.

CapitaLand Investment (CLI) is an exception to the rule. It is a recent addition to the portfolio and the less than 5% yield was already known when I made the move.

I went ahead because at that time I have no other more attractive counters to put my funds in. Also CLI has given dividend in species previously so I felt the 4.58% yield is acceptable.

 

Question

Looking at the results, it is obvious CapitaLand China Trust (CLCT) is a laggard both in terms of yield against cost and dividend trend.

It is also the worst performer in my portfolio in terms of capital loss as mentioned here previously.

 

Now the question is what will I do for this counter?

 

Based on today's closing price of $0.805, I am staring at a capital loss of $8,015.42.

 

My cumulative dividends for CLCT over the years amounted to $4,868.91.

 

Hence net loss is $3,146.51.

 

Option 1: Continue to hold and collect dividends while waiting for price to recover.

 

Issue with this is I don't see any catalyst for recovery in the market that CLCT is operating in. Rental reversion for all three asset types is in negative territory. The downtrend of annual dividends is a double whammy. There is also the opportunity cost involved.

On the other hand, there might be some bright spark this year from the ROI of their 5% investment in CapitaLand Commercial C-REIT (CLCR) which is currently trading above IPO price.

Option 2: Sell now and reinvest in other counters or assets. This might be a quicker way to recover my loss.

Issue with this is there are no other dividend counters that are attractive enough to me at the moment. Nevertheless I can put the funds in my US / HK portfolio or gold / silver though that will mean my dividends receivable will take a hit this year.

Action

For now I'm inclined to wait for the next financial update from CLCT before making my move. I'm also interested to see what they will do with the ROI from CLCR investment. If it does not flow down to existing unitholders, I guess I would have more clarity in my decision by then.