Hi guys, I have been investing for more than 1 year since i graduated, I've been trying few methods and strategies to earn from stock market. I try traded daily, speculate and some portion of money invest for dividend. After one year, I finally think that I should stop speculating and invest based on fundamental and value like Warren did. So, I've been thinking hard lately should I buy solely dividend stocks? Let's say if I have RM100k in my portfolio with average dividend yield of 6%, I'll get RM6k annual which is RM500 monthly, quite decent thou. But, at the same time, dividend stocks are usually blue chip which have stable growth, in other words, less capital appreciation. I need opinions from you all please since u all are much more experience than I am? thanks guys

wow...just after more than 1 year of investing experience,...wanted to get 6% average per annually....
then you are definitely much better than most of the fund managers of unit trust funds....



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magnum, maybank, and most reit pay dividend above 6%

wow... you are
wondering why did the funds with all their analysts and experts performed cannot meet that par annually...?

But when the companies give dividends, the share price shall be revised downwards to reflect the changes. That, and dividends payout is not a given, so companies may decide to give, and what amount. And past records would not determine future payouts.
but true oso, pick the stocks carefully and sure can get nice dividends.

It is a matter of choice, or your investment philosophy. Or chinese called it 眼光. Also depends on your goal (short/long term, aggressive/retirement)

No right or wrong whether you eye for growth stock or income stock.

To me, if a person is not good at analysing (both fundamental or technical) then better stick to blue chips which pay decent dividends.

As long as you are happy, then stick to what you do best

Got good and bad mah. Same as you buy own stock....

That really depends on what is your investment strategy, your risk appetite and your investment horizon, among other things.
Value investing is fundamentally different from trading, so the switch can be psychologically difficult for many people.
You have to really be committed to investing for the long term (think more than 5 years; in fact 10 years is the norm; and Warren Buffet himself has stated that his favourite holding period for a stock is forever).
Which also means disassociating yourself from all the short term negative news and possible volatility, and basically close your eyes and ears, to the point where you can forget about the stock for several years and it wouldn't bother you.
As you said yourself, dividend stocks are generally stable companies which have less capital appreciation (though actually stable dividend stocks are not necessarily blue chips) so they tend to be very boring stocks, which may not suit everyone's taste.
Personally, I avoid all companies which are highly linked to Malaysian politics, and all commodities, and most technology companies.
But that's just me, a novice.

In order for you to enjoy that 6%, the stocks that you have invested must maintain the same give or take price from the beginning of the year. Let's say if company EFG's give out 12% worth of dividend, but the stock lags behind 9.5%, your take home gain is only 2.5%.

Dividends are worth more of the value if you are in for the long haul, especially if you were to compound it by re-investing your dividends into buying additional stocks of the same company. Usually companies with stable dividend returns are REITs, but banking stocks and to some extend, plantation companies are stable. Now you have just look on the good of the greener grass but it does not mean one is immune totally to the fluctuation of stock prices. That needs to be kept in mind.

Hope this helps!

Managing a big pile of money is not as easy managing a small pool of money where u go in and out of any stock without ruffling the waters....

There is no choic for institutional investors other than trading and investing long term rather than intra day or few day/weeks of holding

Thanks for all the replies, especially wengherng. Ever since the, i have been continue to invest, with both income investing and value investing strategies. Income investing is bored but it is definitely viable. I allocated most of my money for dividend stocks. While i also invest in potential smaller companies and it pay off so far. My return on investment is currently at 18%, 20% inclusive of dividends received. Now, Im thinking to register for a share margin financing of a RM50k with Maybank as standby tool to grab any future opportunities. I know it's double edges. So, I set a principle that I only invest in those financial sounds company, such as high cash, profitable for years and so on. What's u all opinions?

18% is a very respectable number, keep it up!
But personally, I'd keep away from margin financing, no matter how lucrative the investment might be.
Even financially sound companies can go bust anytime, and even if they don't, there are bound to be sudden spikes and dips along the way, especially looking at the global financial situation right now, I do not think Malaysia is in a particularly strong position.
Never ever ever invest using money that is not yours.

Yeah, just a plain thought. The fallback of it is great, if anything goes south, can set me back for few years.

There are company dividend yield stand at 7% -10%, even loan money to pay dividend, super good retun.

This post has been edited by Nikmon: Jun 25 2017, 09:17 PM

Bro, link to this website.
Thanks, appreciated

This is not necessary true,

PBB is a blue chip dividend stock, and its long term capital appreciation outperforms a lot of stocks out there.

Simply make your selections and they will generate a customized table for you.
https://www.fundsupermart.com.my/main/fundi...fundSelect.svdo

Ultimately, you have to decide your own investment strategy. But from my point of view, since you just graduated, meaning you still have 30-40 years in front of you before you retire, focusing too much on dividend might not be the right thing for you. I say 'might' because I have no idea what's your personal situation.

However, if you plan is to maximize future wealth, focusing too much on dividend can do more harm than good to your long term return. Since your focus is to generate a long term CAGR, focus on return on capital and the quality of the business. ROC is the ultimate long term key driver that decides your long term return not dividend. Dividend is just a byproduct of a management decision.

Not to mention, yes dividend is great, but you have to take into account that those dividend that you receive needs to be invested back into the market, so you have to think about reinvestment opportunity - is there always another good opportunity waiting for you? You have to think about time, how much time you have to spend researching to find the right opportunity, and lastly, the probability of making mistakes because of decision fatigue. These are all opportunity cost.

Dividend dont lie, but it may declined

Why Bursa? Buy and Sell, ratio 1 : 1

Invest in companies in SG, HK or NYSE / Nasdaq..
Gain / Loss X currency exchange rates too. Fast up / down..
Dividend also X currency exchange rates too.

Thanks for the advice, which I think it's true and I've been focusing more on capital appreciation these days instead of dividend. I study growth company, look at their profit margin, ROE, ROA, leverage ratio all those things. I'm not a risk adverse person, I'm willing to take certain risk and mentally prepared to see my portfolio goes down in bad time. Nevertheless, the end goal is to achieve cagr of 10% in time horizon of 10years.

Since this thread is about dividend, I'm actually looking for counters that are decent in dividends payout. Can someone guide me on where/how to start?

How do u define "decent" dividend payout?

Like probably regular dividend payout.

There are 3 way to go about it.
1) buy reits
2) buy bluechip stocks
3) buy stocks which give decent dividend yield.

Check out EPS, DPS, Payout ratio. Come I give you eg.
Nestle. Bluechip. Dividend only 3%+, but dividend increases yearly.
Good place to start
Dividend Magic

Another good blog post
http://investmentmoats.com/money-managemen...your-portfolio/

Thanks for the leads! Appreciate it loads.

Another stategy is load up on cash, wait for time when everyone is selling then dump it in. Easily can get 10% p.a like how this bloger did it.
http://singaporeanstocksinvestor.blogspot.com
He's a singpaorean blogger but still relevant.

I invest in SG stocks that's why I am following his method + combination of other methods. Bid my time. When the time comes, just dump it in. If there's nothing to buy, don't buy.

That's a very good strategy but it takes a lot of patient, often times I feel like I'm chasing high.. buying when it's uptrend

How to invest in SG, HK or NYSE / Nasdaq ?
Can we invest by using CDS account ?

Our CDS tak laku outside malaysia.
You can buy from local brokerage like Cimb, maybank, etc but you pay premium (higher commision, maybe maintenance fee, dividend fee).
Or you open a brokerage in that country an pay only brokerage comission which will be cheaper than our local brokerage.

Bro is talking like a pro now,... haha,... everywhere also asking people to go INTO THAT COUNTRY to open an account,... Bro,... it's not so simple, okay ?? So many things to overcome,...

But,......... I like your spirit,...

Actually, going into a country DIRECTLY to open a brokerage account or an investment account is similar to doing FDI - Foreign Direct Investment. It's not so popular for Msians,... we preferred to do from inside Msia. The Americans have been doing this for years, just to perform tax planning. Today, with FATCA and all,... no more,...

Bro, now application all online/post liao. No need travel anywhere.
- SG - FSM SG (no need SG bank account/address)
- EU - some online brokerage with online bank account opening (no guts to open EU as the EU is 5x)
- HK - 8 Securities (no need HK bank account/address)
- US - also can open online
- UK and canada haven't research (UK also no guts 5x our currency)
- AU - application via post (no need AU bank account/AU address)
- JP - don't understand japanese

This post has been edited by Ramjade: Aug 1 2017, 11:02 AM

pay heed to wengherng's advise,he is the only contributor who knows about investing not speculating or gambling.
stock picking and market timing are for losers

sifuu...teach me more about good stocks

Is there any update on this? did you invest it in dividend stocks?

Ytlreit, arreit, sunreit. Invest in all 3, get about average 6%.

Might as well diversify some into the PNB Fixed Priced Funds too, since the return is also 6% TODAY,... and the capital is more or less guaranteed, unless you are sure of getting capital appreciation from your REITs,...

oh yes, if can get Fixed priced funds of course its better than Reits

So you'be been chasing and focusing on high dividend stocks? How about you diversify a bit by including some high growth companies that give little to no dividend but still give you decent return on your invested capital. But it is depend tolerance towards risk.

company paying dividend their share price is high also

Dividend shares is expensive
Buy in low volume, u can't feel the dividend come in
Buy in low volume frequently, u making loss in brokerage fee

But better buy if got extra money
Put under bank won't do any good

buy texchem la... 10% dividend yo

problem with dividend stocks is when their profit is high, they pay higher dividend. and vice versa

take JCY for example. their dividend yield record is fantastic, but until this year. their dividend has decrease. no doubt their payout is good, but when bad things happen, they also need to save company ass 1st

another example is maxis. they have been overpay their shareholder in 2016,2015. they dividend payout is higher than their operating profit. shit will happen if they continue to do so, and the ceo reverse the direction.

well. just some example to ponder on...

Hello, i m new to stock, can u pls guide me , where can invest
"Invest in companies in SG, HK or NYSE / Nasdaq..
Gain / Loss X currency exchange rates too. Fast up / down..
Dividend also X currency exchange rates too."

i totally agree with you.

Go do homework first. Then decide what market you want to invest in.

Not if you are in the long run where you expect the RM to drop.

Faster way to learn is to get employ and work in MNC listed in SGX, Nasdaq, S n P 500, thru monthly salary's employee subscription plan, with purchase company share at 6 months lowest price and good 15% discount. create brokerage ACCT thru company.

Otherwise go open own personal brokerage like etrade, ally invest, maybank, rhb invest ..etc to invest, trade, option ..etc

Go Reuters, Bloomberg, cnbc, cnn money, ..etc reading all stories daily.. Believed you know basic financial ratios, pe, quick, current, roe, cash flow coverage/dividend ratio, ..etc..etc

Go to Apple store, Google play, download useful apps for reading and sightseeing. PM if u need more information.
I don't like to share in forum..

anyone invest Realty Income Corporation stock ? heard dividend pay in every month

Yes with 30% dividend tax too. Lol. Don't look at yield alone. It have very lousy dividend growth. Pathetic.

better buy Malaysia dividend stock ?

There's so many stock. Don't just look at realty income. Depends on you.

I don't hold Malaysia stocks cause RM is a depreciating currency. What I earn now won't be enough down the road due to stupid ringgit.

Different people different style. Some need the money now so buy high yield stocks. But got risk kena cut
Some don't need the money buy those 0.5-2%pma stock with 10%+ growth. Figure out your own goal and style. What works for me, won't work for you. Don't blindly copy others.

from the beginning I chose Realty Income but after earning will deduct -30% tax rate, so not much I will get.

Don't let the 30% tax scare you away. Eg. I have visa, Microsoft, adp, UNP. Compare to realty income, the stocks I mentioned have peanut dividend especially visa and Microsoft (I got Microsoft aroun 200-220 mark) But they make up for it in terms of consistent double digit dividend growth.

Also start learning options. Options is essentially a way to get back the 30% dividend tax. Tax free. Again that's what I am doing.

Bro Wong,... I have been buying PFLT for many years, traded, bought and sold for profit or hold and extract monthly dividend. Even after the 30% withholding tax, it is still worth it. I have just started on Dynex.

With the coming rate cut environment, mortgage-backed securities will start to do well.

Hi LYN sifus, I'm new to stocks and I'm not a risk taker... yet.

I'm investing primarily for dividends. My current stocks are
Maybank
RHBBANK
MBSB

I am planning to sell these stocks during Ex Date, because I see in historical charts, the prices drop a lot. I'm still eligible for the dividends right if I sell on Ex Date or is there a detail I missed (eg: cut off time)?

I then plan to buy the same stocks again, hopefully at lower price, then wait for the next Ex Date and then sell again.

I know this is slow and not exciting for most sifus here, but please advise if there is any advice on my simple strategy here.. Thank you

You be wasting money due to fees.

My advice? Really take some time off to really know why you want to invest and what kind if investment you are really for you.

Have fun. Internet manyak advice.

Just hold. Don't bother trying to dividend harvest. Sometimes stock don't even drop ex dividend date.

you guys are lame, year 2017 topic also you guys dig out...

at first i thought its the latest topic, then i see the year "2017"

People ask question I just answer to my best ability.

year 5017 this topic still relevant. i invest in mbb dividend stock long term

But is receiving income from overseas by issuing options on US stocks liable for any tax from the Malaysia side?

Gray area as options is capital gains tax.

What are the good dividend payers in Malaysia? Above 6% and consistent for the last 10 years

Maybank. The only one I know. 🥹

harta, pchem

My choice would be Maybank

Cannot really go wrong with the biggest bank in Malaysia & one of the top 5 in SEA 🔥

But a dividend yield of 6.1% is quite average i must say.

Most here bought MBB sub 8.50, so the yield is 7% above. If you’re looking at current entry, yea 6% ish

Those who bought during covid 7ish yielding 8%

Timing very important...

But even with 6% yield... It's still acceptable level...
If lower then like says 5%.... Then you better off go dump your $$$ into EPF or even some ASMx funds....

Aiming for high dividend yield alone can be a serious mistake.
Stock like BJTOTO, MAGNUM, ASTRO, ZHULIAN, MAXIS gave a consistently high dividend at the expense of lower stock price.
At the end, you get 0 or negative net return.

You should aim for growing company with decent dividend >3%.