Okay I just went onto the Bloomberg Anywhere just now and I have a set of data. For woodenus, if you successfully guessed the two blue chip companies, then good job! If not, I should disclose my two recommended stocks,
YTL and
KLCC Stapled.
But before we get down to the numbers, I would also like to point that PBBANK, as the others mentioned is also quite a well-offed company. They have been giving out dividends as frequent as Consolidated Edison. So without further ado, I should first compare Public Bank vs ConEd and of course our KLCI.
Note: All companies' prices and dividend prices are changed to USD to transparently prove which gains are consistently higher or lower.
For this example, I will turn back to 1987. As you see, ConEd in prices is only up a mere 216%. On a long term scale, it is weaker than pitting the KLCI in terms of gains although this data excludes dividends. Now let us take a look on PBBANK, increased 20 fold since that date itself! It is definitely a strong fundamental stock to begin with. And assuming, you held it since that date itself, for every U$1,000 invested in the stock and exited today, you would have gain U$55,668.50 for every RM1,000 invested. And that also factors in USD adjustments, gains could be higher due to the currency but observe. Now you must telling me, "Stop with this PBBANK", "Other than PBBANK...". I will show you other than PBBANK, let us look at my recommendation, YTL.
Once again, this stock outperformed ConEd by a mile. But observe again, this stock is up 42.5 times and 75.5 times including dividends since 1987. Now assuming you sold it in 2013, you could have U$120,000 for every U$1,000 for every gain. Magic no... Now still not convince with KLSE stocks, I will give you another of my US company that I also favoured. But in this time of economy, you will be shocked to find out which company. Loved that since the day I went into the game in 2007...
First of all, no. I am not trolling. Seriously this is also a good pick. Assuming you own this once again since 1987, you will have gain nearly tenfold and 28.17 times. For utility companies which of course depend on commodity prices, this is also one well of a good stock with dividends as well.
Now take a look back, PAVREIT has an average return of 6.7% annually since its debut listing and KLCCSS outperformed at 9% with dividends. And as someone mentioned earlier, US non-alien residents are
not subjected to capital gains but is
subjected to 30% of dividend tax. I am also a newbie on the KLSE to be honest in terms of playing with real cash but I have experienced real trading on the NYSE with someone else. We played AAPL, PCLN and even WFC. Take it this way, even you want to play dividends with good return, one must have patience and understanding of the stock market. You can say that the losses I made was also due to that factor and it is extremely important. If you are also not insecure about it after this, sign up and play with US markets. In fact, I might be joining one soon to play with options and to diversify my investment. But by all does mean I am leaving for good just that I might be more active in that market given wider opportunities. Have a nice trading day.
DISCLAIMER: I do not currently own this stocks and am only active in this field for nearly 8 years and also a noob compared to the others. And I took a long time to write this until I lost keeping track and opportunity of the C12 gaining 2 sen after mid-day break.
This post has been edited by ILoveLalat.net: Sep 14 2015, 02:47 PM