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General Category => Shares => Topic started by: Mr_Dividend on August 19, 2015, 09:10:12 am
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So, had R92K from the sale of my car - and as I am more than happy with my capital growth I decided to go for income. This suits my tax situation - but will not suit everyone. And personally, would not have a 100% listed property portfolio, would at least want 30% but would be happier with 50% in equities.
My idea was to try get 8% dividend yield with 8% growth on that yield per year and 8% growth on the capital. So have gone for some smaller REITS that in my opinion have something that could get them the 8% capital growth.
Accelerate APF 2977 @ 677c = R20154.29
Fairvest FVT 11525 @ 174c = R20053.50
Delta Inter (will be paying some tax) DLI 665 @ R16.77 R11152.05
Safari SAR 2200 @ 882c = R19404
Texton TEX 1950 @ 1083 = R21118.50
So, all in cost R91882.34 So looking for around R7350 income and capital growth to R100K - will update in 6 months.
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Nice thread, please keep it updated.
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I'll be keeping an eye out here too. Did you get a good price in all this volatility?
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Did okish - I am pretty crap at picking when to buy and generally just buy on the day the money lands in my account ;) I showed great restraint this time, took at least 4 trading days before it was all spent. :D Had a quick peak, one up and 4 down -ah well, in it for the long haul.
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Why did you choose APF over the other REIT's with them being fairly new to market?
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Mr Dividend - interesting thread so I looked up all of the companies statutory details. I see Texton are having a rights issue of 100 million shares in the ratio of 36.22312 new shares for every 100 held. Are you following your rights on this counter. The other aspect is that with such a vast quantity of shares coming into the market it will more than likely severely dent its dividend yield for some time to come. I see Christo Wiese is in the background of this this business - so could be interesting times ahead with your stated objective of getting dividend yields
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Why did you choose APF over the other REIT's with them being fairly new to market?
Decent dividend and lot's of expansion possibilities in Fourways.
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Mr Dividend - interesting thread so I looked up all of the companies statutory details. I see Texton are having a rights issue of 100 million shares in the ratio of 36.22312 new shares for every 100 held. Are you following your rights on this counter. The other aspect is that with such a vast quantity of shares coming into the market it will more than likely severely dent its dividend yield for some time to come. I see Christo Wiese is in the background of this this business - so could be interesting times ahead with your stated objective of getting dividend yields
I bought them because I liked what they where doing in the UK and liked them having CW as a silent partner - the rights issue had not come up when I bought. Interesting point you've brought up about the dividend being diluted - had not thought of that. Think I'll wait and see what they do with the raised cash - I am sure they have some decent deals in the pipeline.
I am not following my rights - I was going to see about selling my rights if possible.
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Mr Dividend - interesting thread so I looked up all of the companies statutory details. I see Texton are having a rights issue of 100 million shares in the ratio of 36.22312 new shares for every 100 held. Are you following your rights on this counter. The other aspect is that with such a vast quantity of shares coming into the market it will more than likely severely dent its dividend yield for some time to come. I see Christo Wiese is in the background of this this business - so could be interesting times ahead with your stated objective of getting dividend yields
I bought them because I liked what they where doing in the UK and liked them having CW as a silent partner - the rights issue had not come up when I bought. Interesting point you've brought up about the dividend being diluted - had not thought of that. Think I'll wait and see what they do with the raised cash - I am sure they have some decent deals in the pipeline.
I am not following my rights - I was going to see about selling my rights if possible.
My opinion would be to follow the rights (if you have the cash that is) as with you improved holding you would be able to claw back some of your lost dividend income. The negative on the rights issue is that though they sit with a pile of cash they have to make that cash work for them, which will take time. Also it would be prudent that whatever property they bought into they would probably have to look at all tenants leases and determine whether they are real or need tweeking and this can take time even if the landlord has escape clauses in the lease agreements. My experience is that escape clauses can be challenged quite successfully by tenants and so income is deferred so to speak until the lease falls due
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My opinion would be to follow the rights (if you have the cash that is) as with you improved holding you would be able to claw back some of your lost dividend income. The negative on the rights issue is that though they sit with a pile of cash they have to make that cash work for them, which will take time. Also it would be prudent that whatever property they bought into they would probably have to look at all tenants leases and determine whether they are real or need tweeking and this can take time even if the landlord has escape clauses in the lease agreements. My experience is that escape clauses can be challenged quite successfully by tenants and so income is deferred so to speak until the lease falls due
Thanks for that GCR, food for thought. I could probably just afford to go with my rights, but (besides selling something) have very little these days to invest - and some small caps are look attractive to me at the moment.
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So, 6 months in - this is where it stands.
Loss on capital - R7418 - Only Delta Inter showing a decent profit - and of course, that was the smallest holding :D
dividends collected R3738. around 4%
So a loss, but no train smash - in hindsight, would have been nice to enter the market a few months later, but if wishes could wash dishes, I could have a sleep in.
2nd round of dividends coming up in March.
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Mr_D, are you confident in in TEX specifically? I am looking at them for the huge dividend yield. The idea being that I buy a chunk once off & then let them pay me dividends every year which I can then reinvest in other shares. If they can keep growing their div by 10% per year, it would pay itself back in ~7 years.
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Guess it depends on what your definition of confident it. For me, it means I would be happy with 5% of my portfolio invested in them which is the maximum I allow myself in any one company. And although I do not, i would, so yes, so pretty confident.
These days I quite like the smaller REITS that have a good chunk of overseas exposure or are planning too and pay a good dividend. Another one to look at would be Tower. On my watchlist too is Tradehold and Sirus (which I once owned then stupidly sold) - and looking into Green Flash and Atlantic Leaf.
I would like to get more overseas property to add to my Rockcastle, Nepi, Intu and Red Inter. - Rockcastle being the stand out for me there, but all have done well
I am beginning to think I am more a share collector than a investor. :))
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Guess it depends on what your definition of confident it. For me, it means I would be happy with 5% of my portfolio invested in them which is the maximum I allow myself in any one company. And although I do not, i would, so yes, so pretty confident.
These days I quite like the smaller REITS that have a good chunk of overseas exposure or are planning too and pay a good dividend. Another one to look at would be Tower. On my watchlist too is Tradehold and Sirus (which I once owned then stupidly sold) - and looking into Green Flash and Atlantic Leaf.
I would like to get more overseas property to add to my Rockcastle, Nepi, Intu and Red Inter. - Rockcastle being the stand out for me there, but all have done well
I am beginning to think I am more a share collector than a investor. :))
Very interesting! Thank you.
It looks like Tower & Texton are on similar dividend yields currently, ~11%. One opting for Croatia and the other the UK.
Maybe a split between the two is a good option also...Needs some more thinking! :)
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1 st year completed
Divi received - R7734. So around 8.4%
Unfortunately - capital has taken a bit of a hit, value is now R83946 - a loss of R7936 - was worse a month or so back. All in the red bar Fairvest (even) and Mara Delta in the green
So all in around even at the moment,
On the bright side they are all growing dividends well - and pretty happy with my choices. Pity I did not buy them a few months later - would have got 10% bang for my buck.
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Swings and roundabouts. Good to see the update, have you compared the overall return to the JSE as a whole?
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good point. All share is up 7.83% so not great.
That said, the idea was for income - and it's scoring on two of the 8's ( over 8% dividend yield and growing that dividend at 8% a year).
so not all a loss. ;)
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1 st year completed
Divi received - R7734. So around 8.4%
Unfortunately - capital has taken a bit of a hit, value is now R83946 - a loss of R7936 - was worse a month or so back. All in the red bar Fairvest (even) and Mara Delta in the green
So all in around even at the moment,
On the bright side they are all growing dividends well - and pretty happy with my choices. Pity I did not buy them a few months later - would have got 10% bang for my buck.
Another year has passed ;D
I would like to know if this worked out for you to date?
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Well - not quite living up to expectations to be honest. Have not sold any - in fact, have added on to a few of them (TEX, FVT and Mara, now called GRIT). No capital growth - in fact fallen a bit further, to R81K. On the dividend growth - not great there ether. Going to this of the top of my head - but it will be in the ball park.
Received around R8473 in divi's - most did not grow this year, just FVT to be honest.
So after two years I would be in the black with two years of dividends collected and R8473 on my original R92K for the year is not bad- that's the glass half full....
But failing badly on 8% + 8% capital growth!
Thumbsucking, but probably have had 8% (not 16%) dividend growth. So failing,but considering the economy ok with that.
But happy to wait - and collect my dividends. I really do concentrate on what the dividends are (and growth or lack of) - for me, a lower price is just a better a yield (hopefully). I treat them as if I had bought a physical property - not to be sold.
BTW, thinking about it - in another way, it has been a resounding success. In the two year since I sold that bakkie I remember using my bike on one occasion - where i needed the car as well as my wife needing the car. And it would have been a 5 minute walk! In the last two years I would have had to service the car once (even if the millage did not require it) say R1500 plus insurance (24 x R300) - R7200 - so R8700. Instead, have been splitting insurance and services with my wife. And of course, after two years, there would have been more capital depreciation on the bakkie - more so, anyway, that has happened on the shares :whistle: