Journey To Retirement Part 5.2 -- CapitaMall Trust

2019 was one of the milestone for me investing in CapitaMall Trust (now known as Capitaland Integrated Commercial Trust, CICT) as it became the 4th stock in my Investment Portfolio to enter the 10-year club.  Now, 2020 it hits another major milestone and that is the amount of dividends collected during the past 11 years has surpassed the amount of initial capital vested in it.  To put it in my term, this investment has became mathematically impossible to lose money.

This was achieved during the October 2020 dividend payout of 3.99 cents/unit and that brought the dividend return to 102.05%.  Technically speaking this milestone should have been achieved in the May 2020 distribution if not for the Covid-19 whereby it cut distribution payout for that quarter.  Nevertheless, like mentioned in last year, it still able to achieve this in 2020, 2 quarters delay.  As a result of that, this has became the second reits in the Investment Portfolio to achieve the mathematically impossible to lose money status, after First Reit in 2017.  Despite this feast, it still unable to equal the record of First Reit in which I did it in 10 years.

On another perspective, CapitaMall Trust has established a record in which First Reit wasn't able to achieve.  During the 11-year period to achieve the mathematically impossible to lose money status, I have done absolutely nothing to CapitaMall Trust.  No right issue (well, I only started invest after the right issue during the 2008 GFC) and no scrip dividend.  That is to say, I have no chance to get a larger dividend payout due to increase in holding quantity.  This is basically a classic textbook case of "buy and hold and do nothing".  I don't think you can find another stocks (definitely not in any of my portfolio) that can do that now.

The only mega event during this 11-year period probably is this year merger with CapitaCom Trust to become Capitaland Integrated Commercial Trust, CICT.  Even that, as an unitholder of CapitaMall Trust, apart from a one-time higher dividend payout in Oct 2020, I don't feel any benefit from the merger.  While, there are many positive to the merger but there will be some negative aspect of it.  However, since this investment is considered mathematically impossible to lose money, this has provided me that much needed buffer or safety net to absorb those negative aspects that come along with the merger.

With the merger, definitely should expect higher dividend payout in the future since it includes those earning from CapitaComm Trust so I wonder can I achieve a 200% dividend return in 2029 -- 2 decades of holding it.  That is definitely something looking forward to.