Accordia Golf Trust - The Next Post

The reaction to my first post about Accordia Golf Trust was great.

Here are some of the comments I received:

"I dont think the calculation for the dividends is correct. I think you are taking trailing 9 months plus 6 months"

"Going forward, the FY16 DPU may drop to 4.64c..."

"Q3 is low season (winter)... and Q4 make up the balance. This is probably the 'worst' case scenario."

"Oct number is quite high. 554k visitors. 2nd highest for year so far. So maybe no need to be too pessimistic also."

"Sounds about just right. I was forecasting more than 10% yield when i entered at 64 cents back then. 8.9% for such a unique foreign reit doesnt seem to be compensate enough for the risk."

Numbers for the Trust:

15 Months - Total Dividend given = 0.0571 + 0.0232 = 0.0803

Annualized Amount - 0.0803 / 15 x 12 = 0.06424

Dividend Yield (based on my average price of 0.719) - 8.93%

Based on latest 6 months dividend - 0.0232

Annualized Amount - 0.0232 x 2 = 0.0464

Dividend Yield (based on my average price of 0.719) - 6.45%

Current Price - Dropped to 0.570 within 1 day.

Dividend Yield (Based on 0.0464) - 8.14%

My view:

I still stand by what I said before. This company was bought for income collection. Although dividend yield is not significantly high like 10%, but it is still above my expectation and I can bear with it.

Furthermore, I am still relatively liquid and the opportunity cost is not high. Nevertheless, Market condition is weak now and the trust's price may fall even further.

I will still give the trust some more time and may even add more in the near future.

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