Hi, just curious how feasible to actually accumulate passive income through stock in KLSE? Let's say 10k per month. If anyone have done it or is doing it, let's share your journey and experience. How long does it take you to get enough passive income to retire?

im getting RM15000 per month

How much capital u need to get that kind of income per month?

Let's say I just want to earn 200-500 a month?

10k per month is 120k per year.
Assuming DY of 6%, the capital you need is:
120000*100/6 = RM2000000

But if you can invest 2 mil in Bursa, chances are you won't be satisfied with 10k per month. In the end you would still be stuck in rat race

This post has been edited by river.sand: Jan 18 2013, 05:31 PM

RM120k divided by 6% should be RM 2mil

Yea, that's how I calculate, that's why I am wondering about the feasibility of generating passive income through stock in Malaysia. Thought I missed out something

Corrected, thanks

I did it with Singapore stocks.

Around 7% annual yield.

Check it out.

My Dividend Portfolio for passive income

There is no 100% guarantee that you'll get 6% divi all the time. It depends on the companies performance and discretion.
Also, don't freak out if the market goes into correction and your capital shrinks -20%. 6% divi also cannot cover.
If the company bankrupt, not only no more divi, capital can go to zero.

let me share with you what i have in mind.
Example : IGBreit 1.39 with dividend 6cents a year = RM60 a year.
average per month is +RM5.
Im going to buy 1000 shares a month so that every month my income +RM5. My monthly passive income will increase as below :
Jan +5, Feb +10, Mac +15, Apr +20... and it goes on.
After 20 years, you should be enjoying about RM1200 a month.

Im just an employed fixed income earner, i wont look forward for 2million capital with passive income RM10000 a month.

My target is 15-20% capital gain per year. Lets take 17% as average.
So my capital can be doubled in 72/17 = 4.23 years.
From the same formula, my dividend yield will be doubled in 72/6 (assuming 6% growth rate) = 12 years.
Therefore, if i can achieve 5% yield on current portfolio, my yield will become 10% after 12 years. By then, every 1.2m of my investment will generate yield of 10k/month.
And in order to meet 1.2m capital in 12 years time, according to the 4.23 years to double capital. Lets say there will be roughly 3 times (12years/4.23) doubling capital in 12 years time. So say today's capital is just 150k. Double to 300k in 4 years. Double to 600k another 4 years. Double to 1.2m another 4 years.

And of course, nothing is easy in this world.
We need to constantly monitor and make adjustment to our portfolio in order to achieve the above target.
We can't just buy and forget and pray that the stock will perform as expected for the next 10 years.
Be prepare to put in lots of hard work is a must for investment journey, or any journey to a success.

So be optimistic while hardworking, and luck will be with you(and me).

This post has been edited by yok70: Jan 19 2013, 02:57 AM

Don't forget to project inflation for 20 years from today. RM1200/month won't actually be worth RM1200 you know.

Wow, I never know there is such a simple formula I thought I need to do exponential calculation

But growth companies usually give very little dividend, and high dividend stocks usually can't grow that fast

How do you attempt to achieve 15% to 20% capital gain every year? Not easy. Do you buy and hold or get in and out few times a year?

This post has been edited by netmask8: Jan 20 2013, 08:55 AM

Agree with you that it's very hard to find growing company that give good dividend.
Hard is hard, but there will be some from time to time. That's why I said we need to constantly monitor the market and make appropriate adjustment to our portfolio, and not just buy and hold.
For today's market, I think there are at least two sector have the potential of growth+high dividend. They are Bank and REIT/Property.
Emerging countries are all growing fast in the past 5 years and they should be continue so in the next 10-15 years. Malaysia also the same, if our government manages well, of course.
Banks are going to definitely ride along with this growth journey. Currently, many local banks are paying high dividend. Maybank, Public Bank etc.
And properties price in Malaysia is still well below peers even at today's price. I think it can only go up in the next 10-15 years before it stabilize and stop growing aggressively such as in the past 5 years. Therefore, REIT and properties stocks will be some best proxy to ride with this. And there are many REITs and properties companies paying high dividend today.
I'd say, it's quite a unique opportunity for investment in the coming 10-15 years. If things go well, it's a good time to growth our wealth.

I might be wrong. Please share your opinion.

I'd say 70-80% of my portfolio, I usually hold them until something not right then I sell. Or found something more yummy then I switch the holding.
The remaining 20-30%, I trade base on TA or news flow.

And I've no confidence to achieve 15-20% target. This is just my KPI target.

This post has been edited by yok70: Jan 19 2013, 08:21 PM

ok. I am here like the rest... Wish to have consistent return every year.. I would like to recommend Prestariang, currently giving 8% dividend yield per year.

Well, let's put it this way.. If i say it will forever remain tht level, tht must be a lie. Bcz it all depends on the earnings they can maintain..
But this stock i can assure u it can maintain its at least 8% dividend yield until 2015. Bcz this co is MSC'status, it is tax free, which will expire by 2015... Meaning to say tht, whtever they generate, is not subject to tax....

secondly, u can see those earnings forecast generated by research, the earnings growth conservatively would b 10%...

Thirdly, this company is individually owned n listed in end-2011.. The management would bb more focus if it is their business rather than institutional-owned.

Lastly, in terms of valuations, it is cheap but also not that bad.. FY13 6x PE for a mkt cap of RM270m , net cash postion of RM60m.....
U can make ur own comparison on this

thanks for all information has given, specially yok70

Im Targeting rm 1000 monthly from investment yields, from there try to topup said about every three months buy more and ur divvy will be higher and higher every quarter thanks to compounding interests. But not putting all eggs in a basket spread the risks to few counters or types of investments.

Ps. The money for investments was not meant for monthly expenses, make sure u still can survive if suddenly ur investment went amok. Totally in my humble opinion.