Banks to cap (cut) dividends - Ouch,,,

Local well known banks OCBC, DBS and UOB has been called upon MAS to cap dividend.

Link Straits Times

What that means?

Cut dividend payout lor.

This spell troubles for many retirees relying on these bank stocks for their expenses. 

Crisis period require measures to remain sustainable, reducing dividend payout to conserve capital is a typical move to adopt to ensure the company remain competitive. 

While some might curse and swear about this, but we should look at it from the rational angle. 

Classic example : Asian Pay TV 

This company consistently payout high yield dividend yearly, even when the cash flow begun to dry up, they still commit to paying out as high as 9% yield which is obviously not sustainable in a long run. Not only this resulted in lower savings but also lesser cash flow which restricted the company for further growth  the result was, the share price of the company crashed down and the company has no choice but to dramatically cut dividend. 

As the old saying' In the time of crisis, cash is King'.

A company with huge cash reserves has better chance to remain sustainable during crisis and perhaps even cater for further growth. Reducing dividend definitely is a painful decisions, but this is a necessary action in the period of tough time.    

Yes, I understand its painful to our pockets, but remember there are people who are far more worse in some part of Earth. Ration our resources, cut down whatever unnecessary expenses or even find a part-time job to compensate. 

I am sure we can survive through. What?! Do not tell me anything about your children music lessons or missing a Starbuck coffee. You pay for what you get and so naturally you will have to bear the consequences of financial difficulties.

A cat within its own world

Amidst the chaos and panic caused by COVID-19.
Someone still business as usual.

They had a fairly simple state of life. Eat and sleep. Making use of a cardboard as its improvised bed.
How.....carefree.

Human race has certainly gone pretty much away from Nature. Nowadays becoming number one seem getting more in human mind, and much worse for those lagging behind within the rat race. Can't we have a simpler life.....like this cat.

Ops,it wakes and saw me.
No, No. I had no food for you. Shoo! Shoo! Go back to sleep!

Monthly Financial Updates

This monthly sustainability report does not include any of the salaried income. The basis for this monthly financial review is to gauge the sustainability status of my financial independence based on the total amount of passive income received.

So a new month begins. As soon as our government relax the rules on Covid-19 entering into phase two. Our medical expenses shot up for the month of June! Well, acupuncture services are back and here we go again.

This month saw the closing of 2nd quarter as all the remaining companies paying out the last of the 2nd quarter dividend which amounted to $4856.20. Rental income remained consistent. A new addition is the DBS multiplier's interests, which I had blogged early in June about how I have tested it and turned it into another money generating tool, following along the concept of money makes money on its own without me looking over its shoulder.

 

The 2nd quarter closed for us with a total passive income of $17,322.19 received, this amounted to an average of $5500 per month. After offsetting the monthly expenses, we manged to save around $11000. Well, so far so good. At this rate of saving, by next year we might accumulated enough to buy another fixed deposit.

Dividend Portfolio remains little change. I invested a little bit into the market when it weakened in the 4th week of June. But overall, it did little to change my overall allocations of the investments. My war chest still retain at 3%, so I am still able to buy into the market should it present any good opportunity.