Investment Ideas (March 2016) - Cache Logistic

Since there isn't that many module reviews to write about, I would post writings on things that I am interested in from time to time. In this post,  I will present a share counter which potentially hold the key to unlocking better rewards than SGD time deposits.

Cache Logistic Trust (K2LU:SGX)

K2LU Google finance Summary

Current price: 0.840

Expected Dividend Yield: >8%

Trading plan: Buy & hold at least 1 year

Why I buy?

I would love to accumulate Cache at below 0.850, especially below 0.830. The dividends for FY16 (this year) is not expected to decline much, meaning the high div yield will provide a strong support for the price in 2016. The REIT acquired new properties in Australia last year which will strengthen the distribution per unit (DPU). In Singapore, it also has a newly developed DHL Supply Chain Centre will increase its revenue. If one is optimistic on global economic performance in 2016, the current price has got to be a bottom. So are you optimistic? Personally, I thought this would be an investment which I will not regret regardless of market upturn or downturn. Meanwhile, I am still in the process of nibbling (did not lump-sum buy) Cache... All in all - fat dividend yield with limited risk.

Any questions?

Leave a comment below. I am not well-equipped to answer "expert questions" but layman discussions would be no problem. Look out for more of my stock picks from this blog in the future!

Caution: Stock market is risky and I am not to be held responsible for any losses incurred as a result of following my trading plan. I am only responsible for my own money, so are you.