Never put all your eggs into 1 basket.

True, but with limited cash, and holding too many stocks, makes your yield going down. Unless you have a lot of cash, else, just buy 1 or 2 counters with high div which can generate enough to buy other stocks.

Never follow what ppl say. I think "knowing what you are doing is the upmost important"

I agree with what Jason said as i am doing this way too. After my dividend is high enough (So far only 1 counter for me) i can use the dividend to pick up any dividend / growth stock i want.

But not saying that you are wrong either just that different strategies.



This post has been edited by darkknight81: Oct 28 2009, 08:06 AM

mind to hint what sector or what counters u invest......... :



DiGi to pay 80% of earnings as dividends compared to 50% currently

http://biz.thestar.com.my/news/story.asp?f...57&sec=business

from above article, it said that "DiGi also said it will raise more debt to “better work its balance sheet.” Such funds will be used for capital expenditure and repayments to shareholders."

Isn't that company with less debt or net cash, will be a good attraction company...?

And furthermore, it mentioned that to raise more debt to repay back to shareholders ....

I am confused on this raise debt to be more efficient in working capital...













This post has been edited by Kamen Rider: Oct 29 2009, 03:32 PM

Buy nihsin , 7215...... a high potential and good pay of dividend.........

This post has been edited by winfai: Nov 1 2009, 11:27 PM

if u stick here long enough, u will know darkknight go for YTLPOWER

Are u serious ... the share had not move for the last 5 months in range of 23 to 25 sen
the total dividend paid for the last 5 years is only 8.54 sen. for a total earning of 16.21 sen per share.
If I will u I will had sold all my share long time ago

This post has been edited by rosdi1: Nov 2 2009, 12:39 AM

Its been long since i graduated, but i remembered some theory i studied in economic class, saying that a company is best 100% leveraged, thus you dont have to invest anything to get returns. because of the ROE thingy...if i remember correctly.

As for Digi, i think its still in its expansion phase, thus needing a certain amount of cash to do so. But from their actions, you can see that they know what their existing investors want which is High dividend, without this high payout, they are afraid that their shares might tank. Thus they are thinking of ways to increase or maintain their share price by giving out more dividends due to competition (maxis).

If you were to ask if they are doing the right thing to increase leverage in times like this and if its a wise choice to borrow money to pay shareholders, ..... i dont know, only time will tell. I like digi as a whole, but the current share price is too high for me to swallow. Shareholders should be quite happy to hear that they are getting more dividend regardless of where the funds are coming from ....hahahaha....as long as not from the shareholder's pockets (rights issue).

Theory always remain as theory.

The theory of stock market is even simple -> buy low, sell high. So easy one, what so difficult to make money in stock market?

Leverage is double edge sword, high leverage company can grow fast, but if stumble, everthing gone overnight. Bankers that provide you the leverage can pull the plug if situation changed. Just like last year crisis, lot of company cannot refinance their debt, eventually went down.

If company is borrowing money to pay dividend, I can assure the stock will plunge, as investors are not stupid, if the company is not making profit while still giving dividend through borrowing, it won't be sustainable, it can be seen through their financial report as well.

M&M Theory? That one sure bust one personal opinion only...

actually it did move to 0.285 on last two months....... But it losing strength as ppl take profit.... It is estimate to pay 2 sen dividend this financial year or 8% interest yield.... You are right, it is generally stay at 23-25 sen, this prove that it is stable and worth to buy for those who want to earn dividend rather than put their money in the fix deposit (2%).....

http://www.insage.com.my/ir/cmn/downloads_...alyst%20Reports

Feel free to view this analyst report..... hehe.... The company will be a cash hold company after 3 rd quarter (no debt)as
it pay out all its debt......... This is a added advantage........ And there will be a new water filter system gonna launch on 4 quarter this year which probably added 3 to 5 millions revenue for the current financial year....

Maybe it is not a good stock who those who wanna make fast money.... for those who look for cheap and stable stock.... this might be it.............

you might be right... looking at the asset, they have these items included :

Goodwill (profit Guarantee) 5.1 Mill ( they are reducing 1.5 Mil a year)
Inventories 22.3 Mill ( 5 months worth had not reduced much from previous year)
Receivable 6.6 Mill ( 12 % of revenue only 0.173 write off as doubtful )
total around 34 Mill and the what if all this only worth 25 Mill
yearly PBT 8.0 Mill
I not an accountant...... but is this very good?

First thing for sure, right issue is the most unfavorable to investors, as instead of getting the dividends from the company, the company now slaughter you to get more money...... which eventually is diluting the shares you possess for the company.....

but on the other hand, i would not think that gearing or leveraging loan for company working capitals, as whatever the company earns, at the end also need to pay the interest on the loans taken..., so this sure will eating up the profits for the companies...., where as when a company is in a net cash, with appropriate working capitals, it generates profits...and the profits will directly contributing to EPS...and eventually all profits will be shares among the investors as dividends etc....

another point is by paying high dividends, could it be the parent company who controls most of the shares wanted to squeeze the "juice" or money out from the child companies (one this child companies) already achieve a stable business....and this probably the time, for parent company to get more or get the continuous returns from the child companies..and one of the way is through a continuous high dividend policy comittment ...this will ensure...the parent company will get all the profits from the child company.... am i righti in this sense... ?



unless the debts taken hold a very minimum interest rate then that would be a very "cheap" working capitals.......

question, which is the company you would buy or possess.....

1. A Well Established company with net cash, high profits, high dividends

2. A Well Established company with high debts, high profits, high dividends

3. A Growth company with net cash, high profits, low dividends

4. A Growth company with high debts, low profits or making lost with zero dividends

---

Added on November 2, 2009, 10:14 pmAs indeed, buying low and selling high is the most fundamental strategy, but yet, how many of us doing that.....

when market bearish, everyone is selling and even with good opportunity to buy into a good value company at decent price, i would doubt that everyone will say "wait for it to go lower, then can get a good bargain"....

and when markets turn to bullish, everyone is buying and chasing stocks like mad, and everyone scare of missing the boats and eventually buy at higher price for any counters they are chasing..and most of them will hope that it gonna go higher and higher, the sentiment is so great, until people will buy into company that never generate any profits before...but due to hot market, people all blindly "invest"................

So borrowing money to pay dividends is not a good strategy......... by right borrowing money at a very reasonable interest rate, is meant for business expansion, re-finance high interest debts, then that would considered a good strategy..... am i right?.................................. so far any company borrow money to pay dividends.... ????? I wonder....

This post has been edited by Kamen Rider: Nov 2 2009, 10:19 PM

wow, frankly speaking i am not a good accountant also.... the latest financial results gona to release soon probably between 20 November to 30 November 2009..... Probably that time we can judge its financial perfomance by profit.... The analyst estimate around 3 millions profit after tax (previously 2.5 millions)..... and i think the board of director will anounce 0.5 sen or even 1.0 sen dividend.... more and less it will lift and support the price....

Will you buy this stock after refering these data?? You ever buy this stock???

Not for a long term....short term anything that move with volume is ok with me

may i know ytlpower normally give how much of dividend?

Last year HTPadu paid RM 0.133 dividend in their third Q announcement in Nov08 and again RM 0.037 in May 09. The previous year (2007) they paid RM 0.21
Expect another good dividend (> RM0.10) announcement end of this month as their profit should be better this year.

This post has been edited by rosdi1: Nov 3 2009, 12:49 PM

I like BJTOTO and MAYBULK too. Both are giving high dividend.

Maybulk no longer able to pay high dividend at the moment due to low BDI and economy situation. Its earning is highly volatile which coorelate with BDI eventually affect its ability to give dividend.

Hi,
May I know what is BDI?