When I bought 3 lots of Singapore Post Limited (SingPost) 2 year ago at a cost price $1.149 per share, it was a pure dividend play. A no-brainer really, to put money in a stable stock that has been consistently distributing around 5% dividend yield every year.
This all changed after Alibaba acquired a 10.35 per cent stake in the postal company. Speculators started trading SingPost shares and the stock price started soaring to a 52-week high almost every week! This dividend stock has changed into a growth stock in my portfolio.
After piercing the resistance level of $2.00 per share for a few hours, the share fell back down to $1.88. I did my calculations and decided to sell all 3 lots of SingPost at $1.905 a few days later to lock in a modest gain of 64.95% and an annualized return of 28.4%. This is after the stock has past its ex-dividend date and that means I’m going to receive my last dividend of $0.0125 per share as well!
At the time of writing this article, SingPost’s share price has gone up to $1.93 but I don’t have any regrets selling this stock because I personally don’t see much upside in this stock from its current price.