Time flies and we are in the last month of the year 2017. I am not expecting anymore companies in my stock portfolio announcing dividend payout. This year, the total dividends I have collected is S$7,350.31. This was a 27.5% decrease in dividend collected as compared to the year 2016 where I reap a total of S$10,132.04 in dividends. The reason for the decline was a lack of special dividends payout in some stocks I held and also declining distribution per unit (“DPU”) for the REITs I am holding.

From the declining DPU of some REITs, the lesson I learnt is high distribution yield may be attractive but it must also be sustainable. For example, SoilBuild Business REIT is having distribution yield of 8% to 9% but fundamentally, it is not sustainable. When its tenants default, the DPU declines quarter on quarter. On the other hand, CapitaMall Trust …