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Author Topic: 888 experiment.  (Read 23204 times)

Mr_Dividend

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888 experiment.
« on: August 19, 2015, 09:10:12 am »
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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jaDEB

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Re: 888 experiment.
« Reply #1 on: August 19, 2015, 11:39:49 am »
Nice thread, please keep it updated.
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jaDEB

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Nivek

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Re: 888 experiment.
« Reply #2 on: September 01, 2015, 04:41:57 pm »
I'll be keeping an eye out here too. Did you get a good price in all this volatility?
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Mr_Dividend

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Re: 888 experiment.
« Reply #3 on: September 01, 2015, 05:14:22 pm »
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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Nios

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Re: 888 experiment.
« Reply #4 on: September 16, 2015, 09:03:31 pm »
Why did you choose APF over the other REIT's with them being fairly new to market?
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gcr

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Re: 888 experiment.
« Reply #5 on: September 16, 2015, 10:14:09 pm »
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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Mr_Dividend

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Re: 888 experiment.
« Reply #6 on: September 17, 2015, 06:58:41 am »
Quote from: Nios on September 16, 2015, 09:03:31 pm
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

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Re: 888 experiment.
« Reply #7 on: September 17, 2015, 07:07:25 am »
Quote from: gcr on September 16, 2015, 10:14:09 pm
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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gcr

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Re: 888 experiment.
« Reply #8 on: September 17, 2015, 10:16:21 am »
Quote from: Mr_Dividend on September 17, 2015, 07:07:25 am
Quote from: gcr on September 16, 2015, 10:14:09 pm
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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Mr_Dividend

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Re: 888 experiment.
« Reply #9 on: September 17, 2015, 10:56:30 am »
Quote
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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Mr_Dividend

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Re: 888 experiment.
« Reply #10 on: February 26, 2016, 10:39:15 am »
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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JohnnyH

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Re: 888 experiment.
« Reply #11 on: February 26, 2016, 11:29:20 am »
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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Mr_Dividend

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Re: 888 experiment.
« Reply #12 on: February 26, 2016, 01:28:23 pm »
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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JohnnyH

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Re: 888 experiment.
« Reply #13 on: February 26, 2016, 02:31:48 pm »
Quote from: Mr_Dividend on February 26, 2016, 01:28:23 pm
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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Mr_Dividend

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Re: 888 experiment.
« Reply #14 on: September 08, 2016, 04:45:15 pm »
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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