Sold my stake in Chip Eng Seng.
So it is like replacing CES shares with DBS.
CES has higher dividends @ 5.6%. DBS @ 5%.
But just pondered which company between the 2 can sustain and even grow its dividends.
Was considering selling CES or Lian Beng.
Was checking on Lian Beng, still liked it for its prudence.
Even though revenue is dropping, they have also saved up some cash.
My thought was to reduce my holdings on businesses that have heavy reliance on Singapore property developments.
Because the government is trying to curb the property prices, trying to dull the property activity.
Lian Beng dividend is lower, at around 4%, but the dividend payout ratio is low, which is good, at around 30%. One sign to show its prudence.
CES payout ratio was around 60%.
LB are also looking to invest into UK, and some other countries, etc.
CES on the other hand, is investing into Australia, which I am not too optimistic about.
Australia is separated or not close to the Belt and Road initiative.
I also watched a video by 60 mins recently that their properties are in a bubble.
Not too sure about how credible is it, but Australia also does not really have anything that stand out at the moment.
Places like Malaysia or Vietnam excite me more.
Another reason I make this move is also after seeing my portfolio in SGX website.
DBS is the share that I like the most, with very tech aggressive transformation.
I saw that a share that I adore so much should also be more significance in my portfolio.
After my share movement today, it is now my biggest investment in my Singapore portfolio, close to 20% (local shares).
If they dip to around S$20, I will buy more. And more if it goes around S$15.
I have not really touched my war chest yet.
Same thinking as how I see Google, I want to own a certain portion of it first.
Then when the price dips, I will buy more of it.
I am more urgent to possess part of the company first.
Another factor I like DBS more is because of a youtuber.
He is Canadian, and one of his videos was discussing about his stock portfolio, which he openly showed his account, the money and the stocks inside.
He said Canadian banks are very good and stable, and he holds quite a few of the major ones.
I see Singapore also in the same situation, with a stable government.
I might look into UOB or OCBC too, currently the 3 banks are similar in terms of valuation.
I like DBS a lot more than the other 2 mainly because it is very tech driven.
The youtuber also mentioned that his Canadian bank shares pay him dividends quite well.
Another thought is that banks hire many smart people.
Smart enough to navigate in times of crisis.
The best companies that is likely to maneuver in difficult times and thrive is like to be banks, as they also have access to golden informations.
There are also enough smart people in DBS to take advantage of opportunities in SEA, like Grab or Go-jek, something I have no access to.
Moreover, DBS is now swallowing smart tech people.
I also checked out their performance during the 2007 crisis.
They are quite stable, slight dip for around 2 years, and stable growth afterwards.
Their growth is good, but not impressive.
That is what I like about it, minimum damage during crisis, and consistent growth when times are good.
So if another crisis comes, I believe they can manage it quite decently.
2010 DBS annual report
Many thoughts this morning, and I also took a longer time to make a decision, whether to buy 100 shares, or 200.
And whether should I let go of one company. And which company to let go.
By the time I bought the shares it was 24.08.
It opened at around 23.7.
But well, if you love something, these are little things that you should not bother.
And it is for the long term.
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