October 2018 Portfolio Results
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| As of 31st October 2018 |
In October, the STI had fallen by 7.32% which almost wipeout all of the unrealized gains for my portfolio. Luckily, my portfolio still manages to close with a small unrealized gain at the end of the month. Despite the fall, I am still comfortable to hold on to my portfolio as the dividends collected over the years provided a buffer to cushion any fall in unrealized loss. At least I can comfort myself that I am just losing money from the dividends collected, and not the money which I have invested.
Although having said the importance of dividend income, dividend yield must not be the single factor to determine whether you should hold the stock. This week, we have Asian Pay Television Trust (APTT) in focus where their dividend was cut drastically from 20.6% to just 3.8% at the price of $0.315. The market immediately reacts and the price loses close to 50% of its value. I am not vested in the stock as my personal threshold of dividend yield should not be more than 8%. Any investment which gives more than that, I will probably be taking too much risk.
Although having said the importance of dividend income, dividend yield must not be the single factor to determine whether you should hold the stock. This week, we have Asian Pay Television Trust (APTT) in focus where their dividend was cut drastically from 20.6% to just 3.8% at the price of $0.315. The market immediately reacts and the price loses close to 50% of its value. I am not vested in the stock as my personal threshold of dividend yield should not be more than 8%. Any investment which gives more than that, I will probably be taking too much risk.
I've never liked the look of Asian Pay Television Trust (APTT) Why invest in a sector that is so obviously on the way out? As an investor, you need to look further than simply yield.
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