Will you receive the dividend on that purchase occassion?

yes.

To answer your question. No, you do not need to hold for 1 year to qualify for dividends. You can buy 1 day before the dividend allocation or ex-date and you will still receive it.

But bear in mind that a dividend announcement will precede it's ex-date which means the stock will already move up higher and take into account the dividend payout. So if you buy after the announcement, it will be at an inflated price.

No point to trade on pure dividend stock. You cannot gain much from the trading. It is a long term investment.

my next target is ytl power ....

Can share y you target this counter ??

All sifus...can I know what is Dividend Cover Times ?

'Dividend cover = dividend/ net profit' if I not mistaken.

just want to clarify..
i calculated guiness annual dividen payout..is it 6-7% nett(on average) annually after the 21% tax(is it 21%?)?
sorry,if im asking a stupid question very new here

26% tax, deducted at source, but you can claim back if you are not making that much (too bad if your tax bracket already at 26%, but sincerely I would like to be there, because that will mean I earn a lot, whole lot...).

Not really understand what you mean..

For example Stock A, it give 60 sen dividend. After the 21% tax, you get 48 sen net dividend.

Starting Year Assessment 2008, which we will file in April 2009, the tax paid on company dividends is FINAL and is no longer taxable when you receive it. This also means that you will not be able to claim back any credits if your tax bracket is less than 26%. This is the proposed Single Tier tax as proposed by our PM in the Budget 2008 last year. I know this sucks because we cannot claim back the additional tax we paid.

I think there should be a transition period of 5 years (similar to Singapore, Singapore's transition period just over last year), in the 5 years, company with enough credit carry forward still can pay imputation dividend (Singapore under Section 44A, Malaysia might have difference section number). But newly form company might not have the balance to pay imputation dividend.

Yes, it's sucks, but that's global trend (Malaysia indeed late by some years to other countries, maybe that's not always bad to be late ).

I think moving forward, companies should use money to repay capital or share buyback instead of paying dividends. Because capital repayment and share buy back are capital gains, so not taxable.

Hmm, but this doesn't reduce the company's profits right? So, the profits still get taxed at 25%. Bloody.

This post has been edited by simplesmile: Oct 19 2008, 11:33 PM

Capital repayment can only repay until capital become 1 cent (half cent or quarter cent also can, but that won't differ much either ). Share buyback does not deliver cash to shareholder. At the end of the day, dividend still necessary.

The tax will not have impact on the company profit, but shareholder rugi a bit (quite a bit )... anyway, the tax already being paid before they declare any dividend (so even they doesn't declare any, the money already in government pocket liao, government don't bother you pay dividend or not, shareholder on the other hand, will be taxed directly or indirectly, that's fated ).

This is not suck for those high earner with highest tax bracker, as highest personal income tax > corporate income tax.

But it hurt big time for those pensioner and lower income group who owning dividend stocks.

BAT will pay final dividend of 75 cents (tax exemption) and will be ex this Friday.

BAT performed hit RM43.00 yesterday and lowest 40.50 within these few days...and today closing at 42.00

So if you buy it 40.50 and sale it at 43.00 then you buy back at 41.50 today...
so total gain = 1.00 + 0.50

and if tomorrow ex at 42.00 then you get the 75 cents...

So? what are we waiting for?
buy ...buy buy............................

To make some correction, to be precise, it is not tax exempted, it is single tier dividend. Previously it declared as Rm1.00 less tax, now with single tier system, it become 75 cents "tax exempted" which is not actually tax exempted.

Thanks for the correction and information. But it seems like no different for us as share holder, correct me if I am wrong again..

For more information, just came across with below stories....

http://biz.thestar.com.my/news/story.asp?f...18&sec=business
http://biz.thestar.com.my/news/story.asp?f...81&sec=business


Correction on BAT 76 cents
EX-date : 04/11/2008
Entitlement date : 06/11/2008
Payment date : 17/11/2008

No, it has big different for those pensioner and those income tax bracket significantly lower than the corporate tax rate ie 24%.
Because they can't claim back the excess income tax being paid.
It has no different if one's annual income is more than Rm100K.