T.U.B Investing

I have previously written about Accordia Golf Trust here and here . Today, Accordia Golf Trust just announced the dividend for the second half of the year - 4.31 cents per share. Although it is slightly lower than previous dividend during the similar period - 5.71 cents per share, but it is still significant. Looking at the financials, the golf trust actually did better this year. Revenue increase and Net Profit increase. Even the future looks good as quoted from the financials; "All of AGT’s golf courses are located in Japan and due to the gradual recovery of the Japanese economy, the number of golf plays has been stable, especially among those golf courses located in the metropolitan areas. This trend is expected to be stable. Despite the downtrend in Japan’s population size, the number of plays per golfer has been increasing. This is due to 1) decline of cost per play as compared to previous years, 2) increase in plays by seniors who tend to play more frequently, and 3...

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 ...

Update: Dividend is given out on a 15 months basis. So the total dividend should be 0.0803/15x12 = 0.06424. I am currently sitting on a big paper loss on Accordia Golf Trust due to its continuous fall in price. My average price is around 0.719 and the current price is 0.590. I bought this stock mainly for the dividend yield and the price has fallen quite a bit since the IPO. Furthermore, I feel that its business is great. There will always be people playing golf and the business will not be gone in a while. So I am very confused if I should continue to hold on to them? After some thinking... this is my conclusion... 1. I bought the stock mainly for dividend yield - My dividend yield this year is 8.93% (0.06424/0.719). WOW! 2. Dividend Stocks do not become a "falling knife", esp in Singapore, if it can maintain a certain yield. Singaporeans love Dividend Stocks. 3. In the long run, if the dividend do not drop drastically, the price will stabilized eventually and the di...