April 2017 Share Portfolio

 

Dear Readers,

It is always good to know about yourself before starting on an investing journey. As for me, my attributes are:

  1. I would class myself as a somewhat medium to high risk investor.
  2. I subscribe to the principles of value investing with minor tweaks of my own.
  3. I buy to hold and will only sell when the opportunity arises.
  4. I am poorly disciplined, unfortunately.

Investing is very personalised. What may have worked for me might not work for you. Therefore it is prudent that you plan an investment strategy which suits you. I don’t mind if you take pointers from this site but don’t treat them as a recommendation.

Lets get the ball rolling with the introduction of my share portfolio. It will be updated periodically.

NO. COUNTER COMPOSITION (%) AVERAGE PRICE LAST PRICE GAIN/LOSS (%)
1. AFFIN 12.53 2.65 2.88 8.51
2. AIRASIA 29.39 2.69 3.01 11.71
3. CIMB 15.84 4.87 5.46 11.51
4. ELSOFT 18.45 1.66 2.12 27.60
5. SENERGY 10.05 1.79 2.00 11.40

The remaining 13.7% of my portfolio is in cash.

All of the companies above declared dividends in the last quarter. Below are the dividends for your reference.

NO. COUNTER DIVIDEND PER SHARE
1. AFFIN RM0.045
2. AIRASIA RM0.12
3. CIMB RM0.12
4. ELSORT RM0.04
5. SENERGY RM0.01

It should be noted that some counters, such as CIMB and AFFIN, offer a dividend investment scheme (“DRS“) to members.

Dividend Investment Scheme

Coincidentally, I’ve just received a CIMB DRS form along with a CIMB annual report.

20170408_154405
CIMB: We have your interest at heart. Instead of hiring proper models, we got our bank tellers, with really poor eye-coordination, to model the front page of our Annual Report.

Members may elect to reinvest the dividends in would-be newly allotted shares for a discount. According to the DRS form:

The Issue Price of RM4.74 per CIMB Share represents a discount of approximately ten percent (10%) to the theoretical ex-dividend price of RM5.26 per CIMB Share, which was arrived at after taking into consideration the five (5)-market day VWAMP up to and including 15 March 2017, being the last trading day prior to the Price Fixing Date of RM5.38 per CIMB Share and the dividend per share of 12.00 sen per CIMB share.

I intend to exercise the option to reinvest. Why? It’s a no-brainer!

Since 15 March 2017, the price of a CIMB share has increased to RM5.46. Exercising the option to reinvest now represents a 12.8% discount! Not bad at all.

  • RM5.46 – RM4.76 = 0.70
  • RM0.70 ÷ RM5.46 x 100%
  • 12.8%

Other than providing a bang for your buck, DRS also helps to compound your returns over time. As a long term investor, these are the qualities which I need for my portfolio to grow.

Are there any other companies offering a Dividend Reinvestment Scheme? Do share.

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