[Shareholder Perks] Perks arrived from DM Mitsui Sugar! Wife is smiling, husband is confused? Real honest thoughts on "7 sugar items" and "capital efficiency" seen after holding for 3 years #52

💡 Conclusion of this article
Shareholder perks have arrived from DM Mitsui Sugar! While I am satisfied with the stability of a 3.8% dividend yield (4.7% including perks) and my wife's smile, I am revealing my real, honest thoughts on the "capital efficiency" of an 18% unrealized gain over 3 years on about 670,000 yen of capital, and the struggle with "7 sugar items that I can't use up." I will talk about my future holding stance, including the possibility of selling during a market crash.

Sugar perks have arrived! My family's real reaction

Thank you for visiting my blog again. This is Third Man.

Shareholder perks have arrived from DM Mitsui Sugar (2109)!

Since I hold 200 shares, I received a set of company group products worth 3,000 yen.

First, let me look back at my holding data and the background of my purchase.

[My holding data]
・Purchase period: June 2023
・Purchase price: 2,848 yen (200 shares: approx. 570,000 yen)
・Current stock price: 3,370 yen (200 shares: approx. 670,000 yen)
・Current performance: Unrealized gain of approx. +18% (+ over 100,000 yen) after holding for 3 years
・Yield: Dividend yield approx. 3.8% / Total yield (200 shares) approx. 4.7%


🤔 Why did I buy DM Mitsui Sugar in 2023?

At the time, the reasons for deciding to buy were mainly the following 4 points.

1. Significant dividend increase: The annual dividend per share was doubled, and the dividend yield jumped to nearly 4% (a clear shareholder return policy of 5% DOE or 50% payout ratio).
2. High total yield: The total yield including dividends and perks was nearly 5%, which was attractive.
3. Life defense & gift for my wife: I thought, "My wife might be happy" if it was sugar we use daily.
4. Defensive nature: Food stocks have limited declines even during market-wide downturns, so I judged it was not bad as a "place to park funds for crash protection."

As a result, my wife was very happy when the perks arrived, just as I had hoped!
Because of that smile, I have continued to hold without selling, even though the option of "should I sell?" has crossed my mind several times.


😅 The gap between "ideal and reality" seen after holding for 3 years

Even now, the dividend yield of 3.8% and total yield of 4.7% are quite excellent if you look only at the numbers.
However, after actually holding it for 3 years, real issues and honest thoughts have become apparent.

■ Issue 1: 7 items arrive in bulk! I can't use up the sugar (lol)
The 200-share perk set includes white sugar (400g), granulated sugar, bottle sugar, and salt, plus a large "Totonoe Oligo (850g)" and Ishigaki Island sugar, for a total of "7 items" that arrive in a heavy, luxurious package.

Thanks to the perks, I almost never buy sugar, but my family doesn't do a ton of baking. Honestly, it's tough for just a couple to use up this much, and the reality is that we consume it by "giving it to my mother-in-law" (lol).

■ Issue 2: Capital efficiency is not very good
Considering that I have tied up about 670,000 yen, which is by no means a small amount of capital, a stock price increase of +18% over 3 years feels honestly underwhelming, considering the recent high stock market.

For example, if I had the same 670,000 yen, I think it might have higher capital efficiency to invest in large-cap high-dividend stocks that focus more on dividends with a yield of over 4%, or in another sector (or index) that can be expected to grow in the future...

■ Issue 3: Capital gains (stock price appreciation) are hard to target
It is a mature sugar industry and not a sector that will grow explosively toward the future. In a good sense, "the finances are solid (equity ratio over 60%) and dividends are stable," but in a bad sense, "it is hard to expect a significant rise in the stock price from here."

If the only goal is "I want sugar perks," there are other options like Wellneo Sugar (2117) or Fuji Nihon Seito (2114). (I personally have enough sugar now, though... lol)


🔮 Future holding stance: Holding patiently as a "replacement candidate" in case of a crash

Looking back now, I think of the perks as just a bonus, and I feel that "there is an option to choose another stock with better capital efficiency now."

However, there is no doubt that it is a defensive stock with a low risk of the stock price collapsing significantly and a stable dividend yield of 3.8%.

Therefore, I will not sell in a hurry for now and will "continue to hold patiently."

However, if I encounter a major market-wide crash (a chance for the entire market) in the future, I intend to keep it in view as a "candidate for sale/replacement" to shift funds to stocks with higher growth potential or yields.

I have realized once again that it is an essential process for sound asset management to periodically review whether it "truly fits our lifestyle" and "how the capital efficiency is," rather than choosing just by the glamour of the perks.

Thank you for reading to the end today as well!


⚠️ Note regarding investment
This article introduces personal investment results and impressions, and does not recommend the purchase or sale of any specific stock. Please make investment decisions at your own responsibility.