LGE ‘Malaysia free from recession risks’

https://www.theedgemarkets.com/article/mala...recession-risks

anyone can explain why the one year total return is negative but it still have dividend yield?

I guess you are new to stock investing?

Return negative coz price fell over the year.

The table shows that despite these stocks giving 'high dividend yields', the stock prices fell, giving it a negative return. Or simply put, buyers of these stocks got their 'dividends' but their return is negative because these stocks fell.

Some points to consider.

1. After a stock gives out the dividend, the stock price adjusts out the value of dividend. Simpler version. Stock A gives out 20 sen dividend. Once the dividend goes ex-dividend date, 20 sen is minus out from the stock price.

2. Most dividend 'investors' hold their stocks for many, many years. So if you cannot hold the stock for, say 5 or more years, you might get the dividends but the stock price might trade at a much lower price than what you paid for.

Why do the stocks go lower after giving out good dividends? Majority of the market prices the stocks based on current earnings performance. Which makes sense if you consider the fact that investor would chase up a stock if the stock is going to earn more money and if the stock earnings is declining, investors might just dump the stock lower. In this perspective, a stock that paid out good dividend yield, would trade lower, if the market sees its earnings declining. (If the earnings is declining, the possibility that the company would be prudent and pay out less dividend).

Hope these give you a better understanding and yeah, it would be really helpful to your wallet if you understand the market more first....

total return includes capital gain (increase in share price) and dividend.
A company can have profits and declare dividends, but still see their share price tumbles. Profits doesn't necessarily translate into an increase in share price.

In this case, they have dividend but their share price dropped, which resulted in negative total return.

What do you guys think about this rates? Is it considered high or average?


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High.

last i seen maybank's EIC brokerage was about US$ 25 for NYSE/NASDAQ stocks

Usually other banks how much? so i can compare

I think it's better to not use local banks to invest in foreign stocks.

what's the best way?

Malaysia GDP 3.6% in last quarter. That's bad. No wonder BNM did that sudden rate cut.

https://www.thestar.com.my/business/busines...-below-forecast

Whole year 2019 just 4.3%.

I don't want to be political.. But PH govt please wake up.. U guys still syok sendiri very high. Non stop excuses. LGE was projecting 4.7% for 2019. Way off target.

2020 LGE project 4.8%, can believe or not now?

LGE and his ivy league advisors cant do anything

they surely can talk with all their formulas before GE14.

We need GST really badly.

No.. Introducing GST now will just hit consumer confidence more. Consumer is currently what is holding up the economy from further drop. Now with the virus.. That's at risk too.

It's just that PH govt is so slow and uncoordinated. Probably busy playing their stupid political games.

This post has been edited by Cubalagi: Feb 12 2020, 05:50 PM

way too expensive..and why hk market no online order?

sometimes I feel like investing in Malaysia (whether stock market or as a country or any other aspects), is like investing in a company with bad management.
My local to foreign share ratio is about 60:40 now. If I liquidate all the local shares, then the return would be worse than FD.

Ya.. Unfortunately true.

If u study the BNM GDP announcement it mainly blamed the drop on last Q GDP to "disruption in the commodity sector" and "fall in public sector investments".

which to me means:

1) India palm oil boycott
2) Projects - slow poke implementation

Both are self inflicted factors n not really external factors.

What's the best way for malaysian to buy US stocks online? Was told using local banks has very high fees... What other safe options are there?

What do you guys use?

This post has been edited by UsernameCopied: Feb 14 2020, 11:44 PM

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