Thanks for the writeup.

You sold your Panamy?  Panamy is a very good example of the above....

Yo mate, I remember ya! You are the guy who hold Panamy with cost at RM10 or below.

My Panamy is not for sale. 

Yo mate, I remember ya! You are the guy who hold Panamy with cost at RM10 or below.

My Panamy is not for sale. 

Question: If you hold a stock with 6% dividend yield, at what FD rate (%) will you consider cashing out your stock and put into FD?
Eg: 8% FD interest rate.

By submitting income tax return and declaring your dividend income.

Steps:

1. Regross your dividend income with the company tax rate on the year which the dividend is declared.
Example for the year 2010, Say you received RM 75 2 tier dividend income.

Year 2010= Tax rate for companies = 25 %
Dividend received = RM 75

Regrossing calculation formula = 100/(100 - current year tax rate) *Net dividend received

100/75*75 = RM 100

Include this RM 100 in your dividend income.

Then after you calculate your net income tax payable for the year, deduct the portion of the dividend that has been taxed. As such 100 *25, = RM 25 (this portion where the company has remitted it to the IRB via S 108 dividend franking system. Remember, you only received RM 75 when in actual fact RM 100 dividend is declared)

Claim it as Section 110 set off = RM 25.
Any income tax payable you will less this to bring down your tax payable.
If you do not have any tax payable, this RM 25 will be a refund to you.

Question: If you hold a stock with 6% dividend yield, at what FD rate (%) will you consider cashing out your stock and put into FD?
Eg: 8% FD interest rate.

hi,
I would say the first thing to look is earning per share growth rates versus dividend growth rates per share. Provided the earning is backed up by good free cash flow enough to cover the dividend.
The second I would say depends on the payout ratio of the company.if the payout ratio is almost 100%,this company almost behave like a bond,what the company earned..they return almost all to investor all and left no much cash for future development... Unless you expect the company's earning per share increase sufficiently every year (which is less likely), so FD is much more preferable due to more safer.

I have another question here, which dividend company do you expect will give the highest return in terms of capital gain & dividend rates return in the next 5 to 10 years?I am still searching a company which such characteristic in KLSE (good in capital gain + dividend rates).  just give any opinion...

Hey foofoosasa,

What you're looking for is the holy grail of all investors.    The best is to find a company which is still growing, has a healthy dividend policy and also fundamentally strong. You got PM.

DiGi is the king of Dividend Stocks. Soon it will going to share-split 10 to 1 even more affordable now....

later expect it to receive 10% of the dividend after splitting. 

DiGi is the king of Dividend Stocks. Soon it will going to share-split 10 to 1 even more affordable now....

so how did u come about this King conclusion?

Whats the dividend % yield on Digi in the last 5 years?

who cares, u still havent answered the question.

how about NTPM, div yield around 5%, price very stable during these few months of volatility,