Company cannot pay tax-exempted dividend for the dividend that derive from operating business profit.

One must find out why company can give tax-exempted dividend in the first place. Like Maybulk, they make lot of profit from disposable of their old vessel. As capital gain is tax exempted, the profit generated from the capital gain which will be given as dividend can be tax exempted.

Also, if company got plenty of tax credit, then company can use the tax credit to offset when giving out dividend time.
But after 2012, all unused tax credit will be forfeited, so everything will follow single tier tax system.

I am not profession in tax stuff, so please bare with me and correct me if my above statement is not accurate or wrong. Thanks
Just my shallow knowledge and as far as I knew.

I think they use their tax credit as well.

Yes, after use up tax credit then no more tax exempted dividend.

After single tier system being implemented starting this year, gov will earn more.

As said, my answer is not definite. Just a simple illustration.

Cheers

If a company foresees  future profits to be good, then having more Capital Allowances ( buying more vessels ) would be a good tool for them to pay less tax. To charge out against profit as expense.

If let say after claiming all the Capital Allowances ( 100%), then it is always advisible to buy new Assets  to claim for new  capital allowances again. Most do it on rotational basis.

Old vessels that do not have anymore Capital Allowances left, would lead the company to pay higher tax on profit.

Selling off old vessels at a gain ( low book value left  ) would make the financial  statements looked attractive also. Large savings on maintenance too. Old Assets that exceed a number of years would have only scrap value left.

Capital gain is not subjected to tax.

OT. The present tax structure may not in the favour of those are expecting dividends bcos of high with holding tax. On the other hand, the Capital gain tax on shares is zero.

 

Just my 2sen opinion.

I do think JTinter is a bit toppish at the moment after recent run of the announcement of special dividend. Having said that its high dividend policy will sustain the stock around 4 in the near term as FD rate won't go higher than 3.7% at least for this 1-2 years time. Normally, this kind of stock won't go up nor go down much one.

Dividend stock is highly depends on economy situation (more precise is individual company business) and interest rate environment.

Apollo is also a dividend stock but its low liquidity make it harder to judge or determine.
Often no trade at all for the whole day.

Just my personal opinion.

The main disadvatange of low liquidity is when you have many in it then it is hard to dispose the shares without depress the share price.

Buyers will queue far away as they knew you are keen to dispose. In those low liquidity stock, only a few interested players are around.
So a few up to hundreds lots no problem for retailers but more than around 500 hundred or thousand lots onwards one, then one will fund difficulty to dispose.

Look at its trend of its sales, then you will know how popularity of the Apollo confectionery. I don't know also, interest to find out also. 

Is Gamuda a High Dividend one? issit worth for long play?

The problem now is that it is widely known those construction company might facing margin squeezed until to single digit profit margin only which mean high dividend is not sustainable in the future. As lower EPS will mean lower dividend.

Compared to construction play, I would opt for properties stocks that are trading at signficant discount to its NTA while with good management and still able to generate profit (although profit might be down, but still maintain at ok level only, as it is almost impossible for properties sector to register profit growth as last 2 years)

Anyway, just my opinion.

Over the long term, those are well managed one, surely will come back. Economy is always adjusting itself, too few profit, nobody wants to do so weak competitors being phased out, so when situation improves, then with less competitors, profit margin will go back up.

It is part of economy cycle.
Just it takes time (up to years) to from one to another. 

Wow! CCB is now at RM2.99, 11,000 + units queuing to buy at that price but nobody willing to sell! Ridiculous! 

wat's SD? =P

cycle & carriage giving out a RM1.40 dividend!!!
walau...wat a great company.

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Added on August 1, 2008, 12:20 pmCan anyone tell me whether still worth to buy in CCB for the great dividend???? i want with the boat..

JUst come back to malaysia.. Hehe.. Currently, in US.. difficult ma.. or maybe I don't smart in making profit..

Nobody interested with relatively flat counter like AMWAY?

Wow.... useful thread as my target is counters with high div as well as a buy & hold. Makes me realize how much effort full time investors must put in. Thinking of entering share market directly for the first time, but still v. nervous. So far am focusing on PBBANK, BJTOTO, YTL, Magnum, Mah Sing & Hicom. I'm limiting it to those with price <5 (except PBBANK!). Any thoughts/ other counters too look at?

Guiness, Panamy, Bkawan, Tanjong and not forget Reits counters.

Genting gives peanut dividends, how do you consider it a high yielding counter?

aiyo i didn't read it carefully sorry.

Jordy, u meant genting vouchers huh?

How bout high dividend countes at lower thn RM3?
Am new at divident counter, may i know the lowest best return dividend counter is which one ya?

Show me the money!! I always prefer cash than vouchers, unless the vouchers values are at least twice higher than what they would distribute as cash dividends. Reason being,.... I can reinvest my dividends. With vouchers, I can only spend.
Of the 6 counters you listed, I own shares in 2 of them. Thanks for sharing the list.

BAT is a big cap company and it is considered like a Dinosaur which moving very slow and steady ..... while Penny stocks are likes small flies which movement is fast and inconsistently and some time fatigue and stop there forever where need energy booster to revive it.....

I have heard that people will sure lose money when they first step into share market...and they need to pay for school fee in order to gain the experience and knowledge.........................

but many of us using technical analysis, while probably small portion using fundamental analysis wit the combination of technical analysis......  and heard that there are ppl just a traders who use technical charts etc...can survive in share market.... so  I guess they can sustain the marathon run and earn money from stock market in bear and bull times.......

2009 is the good example, where bear comes and now start the bull rally....and many of us have gone thru this 2 situations... and probably gaining profits while getting the key experience on it...
but yet....is the global economy already back to normal, are we in the recovery trends.... only economists know... probably after the facts....for me i am hoping another downturn ..as i don;t think the economy already in recovery stage....