Now I've got 70,000 shares of Netlink Trust at an average of 85.4c, and 26,800 shares of Manulife at an average USD 0.861c.
Why did I pick these stocks?
- Netlink Trust is a defensive counter, one of the few whose earnings would be unaffected by a recession. And still (barely) trading at a reasonable yield. Long term, its residential revenue should follow the growth in Singapore household formation. Its Non-Building Access Point's (NBAPs) should grow with internet-of-things/smart-city coming now, and 5G coming later. I can't see any disrupting technology on the horizon, though I need to remind myself to keep a lookout.
- Manulife US Reit is developing a good track record after listing on SGX. It is trading at a decent 6% yield with freehold buildings, unlike local REITs trading at a sub 5% yield with leasehold properties. The risks are a recession (affects all stocks/REITs), and tax law changes (affecting any US-property REIT listed overseas).
Why did I buy now?
Scared of missing out.
Netlink Trust shot up on the day I placed my largest order, and I missed it. Strong enough that my broker said it would unlikely come down that day. After thinking about it: I am buying the income stream. I'll still be happy if I buy at a higher price, and it comes down later, as long as I collect my dividend. I'll be unhappy if I miss it now, and it never comes down again. Which is unlikely, but possible - look at Vicom. There's very few stocks giving a 5+ % yield that would also be unaffected by a recession. The market was still offering me the chance, so I bought it. Never regret.
The market narrative now is all sunshine and rainbows, especially for dividend stocks. The Fed is expected to cut rates. Worst case - for someone like me shopping for dividend stocks - is that this narrative goes on for another year. Until the either the economy starts expanding, goosed by low rates, or we do finally get a real recession.
I am now 60% invested. I don't feel the need to buy anything else this year, but can do so if the market drops. December showed how quickly the narrative can change. I am waiting.
