protonw,

To accumulate big cap stocks like PBBANK, you will have to increase your capital by the thousands (though you are only buying 100 each time). Smaller cap stocks < RM3 can be bought with only RM300 for 100 units. That is the only difference.

Also, when buying small cap stocks, the possibility for appreciation is higher. So you could have sustainable dividend and capital appreciation.

Thanks for sharing .... for small caps .... it is small profits though the profit using EPS and DPS to calculate, still very attractive, but yet they probably are have potential to grow if they can expand their biz, but yet...there sure a risk for this small caps.... if they are unable to sustain their biz...

where as for big caps, they have already established their biz model and currently is performing harvesting on its profit....and so far i found they are few counters are able to provide good dividends if you buy at right price... just recently 6-9 months ago the downturn due to global financial meltdown has provided a good opportunity to grab the big caps..at the most attractive price,....though many of us still waiting for their share price to drop some more...

just my 2 cents, as every investors or traders have their own ways of choosing their favorite counters.....

for Apollo, i have read thru their annual reports...but yet still not making a buy during its price at around 2.50... but no regret for me as I still follow my way of choosing stocks....

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Added on November 8, 2009, 10:21 pmmm... it is not advisable to buy in 100 units for < RM3.00 share, as the broker fee already eating up your profit margin ....

normally a RM4k above is more advisable.... for today even with BAT or DIGI, if you were "sapu" 100 units, it will cost you 4k plus and 2k plus....



This post has been edited by Kamen Rider: Nov 8 2009, 10:21 PM

We don judge small cap and big cap by the the share price. Judge it by the market capitalization which is number of shares x share price

I still think that diversifying too much is not a good choice. Why pick up the best 20 instead of picking up the best 3 ?

Kamen Rider,

That is why adequate research is required prior to buying any dividend stocks. If you think that the business model is sustainable, then it's a good bet. Unless you are buying in blindly by just looking at the DY.

It is indeed not advisable, but sometimes people tend to have no choice because of limited capital for top up. I was comparing the ease of accumulating small caps and big caps.

darkknight81,

Don't you think most small caps are cheap stocks? Stocks with higher price are more likely to issue more shares than stocks with lower prices due to the size and accountability of their business. So it is still right to consider small cap stocks as cheap stocks.

You are absolutely right. But whenever able, I still stand for spreading the risks; some heavy weight with low cap would be ideal. Anyway, this is just my personal liking. May not be acceptable by all.

Can some one advise me on below questions???


1. DiGi declared a dividend of 75 cents, but I checked in Bursa Malaysia web page, it didn't stated which the payment / lodge date.


2. I have done a basic calculation

By taking yesterday closing price for BAT at 45.40 and DiGi at 21.80....if the same amount of money e.g. RM20,000 invested into both counters....., total units hold for BAT = 440.53 and DiGi = 917.43 (let's assume we can hold by fraction of shares).....

Then with DiGi recent 75 cents dividends payment, one would get 917.43 shares x 0.75 = RM688 as dividend of holding DiGi

If the same amount of RM688 were to pay to BAT holders, so for a total units hold for BAT of 440.53 shares, the dividends need to be paid by BAT would be at RM1.56.....


So in summary

Paying RM20k of Digi hold 917.43 shares, and with 75 cents dividends, get RM688
Paying RM20k of BAT hold 440.53 shares, and with 156 cents dividends, get RM688


If DiGi, projected to pay 180 cents dividend in a year, below is the summary

Paying RM20k of Digi hold 917.43 shares, and with 180 cents dividends, get RM1651
Paying RM20k of BAT hold 440.53 shares, and with 375 cents dividends, get RM1651


Thus BAT need to payout RM3.75 as dividend in order to equal to Digi payout of RM1.80

However, based on past many years, BAT normally paying less than RM3.00....

Conclusion:

It means that DIGI is a good buy compare to BAT, if DiGi projected to payout RM1.80 dividends...



Am I right ?????

Ic. Besides being stable I would like to aim for high dividends. Do petroleum giants payout that as well? I always thought they pay normal dividends only. My company (petroleum giant) where I work at also offers employee share programs? Do I buy this one then? Cos many of my colleagues don't.

Right and wrong.

Some div of Digi is in the form of special div, which might not repetitive for next year.
Digi earns about 1.20-1.50 range, so cannot constantly pay 1.80 for you.

Need to dig deeper to have better comparison.
Also business model/nature is different, cannot compare directly as well.

Kamen Rider,

Why don't you just calculate the yield to compare between the two?

DIGI paying 1.80 at 21.80 = 8.26%
BAT paying 3.00 at 45.40 = 6.61%

The answer is direct that DIGI paid better dividend.

oh ...actually my calculation intends to find out 75 cents of dividend payout by DIGI would equal to how much dividends payout by BAT... probably i have running a big round to find out


btw...anyone hold Amway shares...how is their biz like / dividend records ???

great analysis , both also out of league...have to find some small cap then

If you prefer smaller cap, then take a look at REITs .

I like REIT tax structure whereby you are taxed at only 10% instead of normal 25%. Smaller capital outlay and with more consistent dividend payouts. Unlikely to have special lumpy Dividends .

Risk factor, many claim reits to be high risk.

My personal opinion is : Moderate Risk .

Judge your own.

This post has been edited by SKY 1809: Dec 10 2009, 07:22 PM

I would say some reit has higher risk compare with another. As you need to see type of properties they are in and also how they diversify their properties portfolio.

Yes, you are right.

Generally, Risks are classified into conservative, moderate and High Risk , for so called Investments.

Generally, Equity is deemed to be High Risk across the board.

Again for share investment, higher risk could be due to High Beta ( Big Price Movement ) and Standard Deviation and so on. For those with low beta comes with smaller risk. Growth Factor and Time Horizon. Liquidity and so on.


"Higher risk" is also possible if a particular company operates in many third world countries ( emerging markets ) , or like Dubai and so on.

If taking in these factors, investing in M REITS to me is quite a " Moderate" risk , my own term. Also if you spend time to understand them.

No doubt, it is good to start with Fear ( by asking all sorts of Q ) than Greed ( asking for only rates of returns ).

Not saying you are wrong anyway.

This post has been edited by SKY 1809: Dec 11 2009, 08:09 AM

Sorry , i meant among the reits some is having higher risks compare with another reits. For example, UOA REITS risk is lower compare with atrium. We need to check their properties portfolio.

Currently most bluechip dividend counters are overvalued, aren't they? Any historically good dividend counters still undervalued?

Most of the Bluechips were never in high dividend category anymore except for few below :-

BAT, BJTOTO, DIGI, TM(Maybe), UMW & YTLPWR

Are they overvalued ? Maybe can consider BJTOTO, being badly hit recently...getting attractive.

wat is bjtoto value now per share?
how about maybulk? heard its a good one too

Maybulk's nature of business is more cyclical as profit is highly volatile depended on BDI.

When they earn good time, then can expect good dividend. But in difficult time like last year until now, expect little dividend.

Have you considered Boustead Holdings? Although this year's result is much lower than that of FY2008, it is likely that a dividend of 30sen/share (3 interims and 1 final) still maintainable.