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 High Dividend Counters, Better than putting in FD

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htt
post Oct 9 2008, 04:50 PM

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QUOTE(SKY 1809 @ Oct 9 2008, 12:50 AM)
Advantage  could be

let say you put in 50 sen to  buy a share, then co pays you back 45sen. Then you still the same number of shares , but at lower risk of 5sen only.

Most likely , these companies have cash pile. if they afford to you extra dividends of let say 20sen a share.

So you got back more than you put in, and you still have the same of shares in that co.

If the share is goreng up, then more profit for you. If the co goes bust, you have nothing to lose.

Just one of the examples.
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Another thing is they paint a rosy picture for some of their ratio, e.g. return on capital as capital is now smaller number, but gearing will be on the other way (but normally when they do that, they should have very little debt tongue.gif ).
htt
post Oct 16 2008, 09:38 AM

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QUOTE(David83 @ Oct 16 2008, 08:25 AM)
Will you receive the dividend on that purchase occassion?
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yes.
htt
post Oct 18 2008, 08:26 AM

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QUOTE(rayloo @ Oct 18 2008, 06:35 AM)
All sifus...can I know what is Dividend Cover Times ?
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'Dividend cover = dividend/ net profit' if I not mistaken.
htt
post Oct 19 2008, 07:41 PM

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QUOTE(dxlethal86 @ Oct 19 2008, 07:18 PM)
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  laugh.gif  very new here
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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...). drool.gif
htt
post Oct 19 2008, 10:42 PM

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QUOTE(simplesmile @ Oct 19 2008, 10:21 PM)
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.
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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 tongue.gif ).
htt
post Oct 20 2008, 08:51 AM

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QUOTE(simplesmile @ Oct 19 2008, 11:32 PM)
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.
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Capital repayment can only repay until capital become 1 cent (half cent or quarter cent also can, but that won't differ much either tongue.gif ). 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 tongue.gif )... 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 tongue.gif ).
htt
post Nov 11 2008, 08:35 AM

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QUOTE(espree @ Nov 11 2008, 08:20 AM)
I see. I think I kinda understand now. Just that.. Take Jinter for example,
Lets say they repay 75cent of its 1ringgit value, and their stock it currently at rm4.30. then after the repayment.. how much the stock price will become? izzit rm4.30 - 75%??
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RM4.30-RM0.75=RM3.55
That's theoretical ex-price.
Rational behind is asset reduced by that amount.
htt
post Nov 11 2008, 08:53 AM

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QUOTE(espree @ Nov 11 2008, 08:45 AM)
"The Proposed Capital Repayment involves a capital repayment via cash on the basis of RM 0.75 for every one (1) JTI Share to the Entitled Shareholders (as defined below), via a reduction of the share capital of JTI pursuant to Section 64 of the Act. Upon completion of the Proposed Capital Repayment, the par value of the ordinary shares in the Company will be reduced from RM1.00 to RM 0.25 each and the Memorandum and Articles of Association of the Company will be amended accordingly."

above extracted from Jinter announcement.

can anyone explain it. I want to know if i have jinter stock at rm4.30.. how much will i receive and what price will my stock become.. and what does rm0.25 par mean?
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That means for each 1,000 shares, you will get back RM750. That's exercise to cut down the capital of the company (because they might have excess and they have no better way to do it). The par value if virtually meaningless as that's the initial capital that company had been in (maybe when policemen still waring shorts that time), over the time, the profit might have jack up the share capital a lot but the par value might still stay the same (if they didn't issue bonus, rights etc), same to losses which might had eroded the share capital. In shorts, the RM0.25 means the value of money in a share with reference to the time they start the business. Your share will be shack of by RM750 as asset (cash) will be reduced by that amount (base on theoretical calculation, real market might be a bit up or down, but not by very much if the market is not fluctuating very much).

And Malaysia is study to abolish the par value system now, Singapore already done that.
htt
post Dec 11 2008, 08:44 PM

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QUOTE(panasonic88 @ Dec 10 2008, 09:43 PM)
someone mentioned about UCHITEC

UCHITEC is giving a Tax Exempt Dividend of 6 Sen per share.

based on today's closing price - 0.945, that would be equivalent to 6.3% DY.
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Their business no grow leh, and seems like they still stuck with 'not so high tech' R&D, just my 2 cents. tongue.gif
htt
post Jan 14 2009, 04:04 PM

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QUOTE(panasonic88 @ Jan 14 2009, 03:03 PM)
methematically, yes.

but this is not confirm yet ah. jsut wait for announcement on 19th.
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Who knows PBB might be 'forced' to distribute their treasury share to meet the high expectation of shareholder due to rumors tongue.gif
3 people become tiger... haha...
三人成虎。。。哈哈。。。
htt
post Jan 17 2009, 03:50 AM

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QUOTE(Freelancer @ Jan 16 2009, 06:08 PM)
Just received my first dividend cheque from Proton yesterday.  biggrin.gif
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Proton? This is a 'good' one, making profit while Toyota also making loss, what JIT, kanban, andon all cannot use one, spirit of 'Jepun Boleh' is all they need tongue.gif
htt
post Jan 31 2009, 10:15 PM

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QUOTE(SKY 1809 @ Jan 31 2009, 08:47 PM)
5% less tax is no much better than FD mah. FDs are Govt guaranteed, right ? Not worth the risk, lah.

Share price could go down further if there is a depression, leh . 5% div could become super low then.

Added on January 31, 2009, 9:15 pm

Proton is better than Toyota bcos  it is selling at higher price than Toyota ( before  adding all the taxes.)

Malaysia sure boleh one. biggrin.gif
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biggrin.gif
htt
post Mar 17 2009, 03:20 PM

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QUOTE(Soulsareworthless @ Mar 17 2009, 02:57 PM)
Is the 2.15 sen dividend after tax? How much is the tax rate?
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before tax. tax at prevailing corporate tax rate.

This post has been edited by htt: Mar 17 2009, 03:21 PM
htt
post May 31 2009, 08:53 PM

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QUOTE(alfredfx @ May 31 2009, 01:47 PM)
AMMB is my top pick instead of PBB
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Any reason for that? The counter highly volatile one leh... hmm.gif
htt
post Nov 2 2009, 04:28 PM

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QUOTE(maxchua @ Nov 2 2009, 01:11 PM)
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).
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M&M Theory? That one sure bust one tongue.gif personal opinion only...
htt
post Feb 23 2010, 03:24 PM

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QUOTE(simplety @ Feb 23 2010, 02:11 PM)
Dear sifus,
  I got one noob question, hope you all can recommend.

I have RM 1M cash, which I dun need to use for the time being (4-6 years).
I do not know anything about shares.
If I want a low-risk, high dividend shares, what should I buy?
Can recommend maybe 2-3 counters??

1. Nestle?
2. BAT?
3. Digi?    - can last good dividends for another 6 years?
4. BJToTo?    - can last good dividends for another 6 years?
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Better get some pros to help you then...
htt
post Feb 26 2010, 02:57 PM

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QUOTE(whizzer @ Feb 26 2010, 02:27 PM)
Yes thumbup.gif . I believe the technology is already there instead of archaic paper based cheque. The overall, efficiency and overhead costs should be minimized. Hopefully, the savings should be passed onto the customers in the long term.
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Don't worry, they won't, that provide incentive for them to do so.
In other countries already have such systems in place, just give them your account number and the money can wire to you on the date without miss. No delay, no commission, no lost in transit etc... Just too bad, no pass on of saving... tongue.gif
htt
post Feb 26 2010, 03:26 PM

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QUOTE(cherroy @ Feb 26 2010, 03:03 PM)
Nowadays, e-banking already quite established. Online transfer should be adopted.

With a simply few click or directive to bank, money already in your account, instead current method, share registrar or company need
get the cheque printed
seal in envelop
post it
post service need to use train service and manual postman to deliver
after you receive, still need to go to bank to bank in the cheque (which might cost a few RM loss due to parking, petrol, and most importantly time)

Go through a big circle as compared direct bank in.
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Without that...
Post office lost business...
Cheque printer lost business...
Envelope printer lost business...
Petrol kiosk lost business...
Local government lost business (guess a lot of them just simply illegally park outside without displaying coupon)...
The impact might be big, for the sake of letting you goyang kaki at home tongue.gif

But pls, bring it on, that had been overdue for long liao shakehead.gif
htt
post Mar 4 2010, 04:36 PM

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QUOTE(kamemada @ Mar 4 2010, 04:29 PM)
Guys, a fast question... got a screenshot here. Which one is the dividend?
Say to calculate it;- 1000shares * Par Value * Dividend = ?
user posted image
Earning per share(Sen) or Dividend(Sen)?
Confuse.

Thanks in advance!
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They already calculate for you liao.
1,000 share *130 cents = RM1,300.

By first sight, think that's wrong...
Share price should be 14.9*27.92c=416c=RM4.16
Dividend should be 0.31*RM4.16=RM1.28 (close to RM1.30, so the RM1.30 should be correct)

What company have NAV of RM1.5695 distribute out RM1.30 as dividend? They want to close shop liao?
htt
post Mar 4 2010, 05:20 PM

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QUOTE(kamemada @ Mar 4 2010, 05:01 PM)
Oh LOL. So I just straight away multiply shares with dividend(sen) column.
Thanks alot! Very new with this dividend thing.


Added on March 4, 2010, 5:09 pmAnother quick question.

When a stock is at *C status, I can straight away buy the shares and can straight away sell it back when the stock is at *X status, correct?

Which normally the holding time will be about 3-4days, correct?

Only for the purpose of getting dividend.

Thanks!
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That's correct.


Added on March 4, 2010, 5:22 pm
QUOTE(panasonic88 @ Mar 4 2010, 05:18 PM)
not worthy for doing so, as share price would be adjusted back after the ex-date.

if your intention is to buy for long term & enjoy the decen dividend annually, best is buy after ex-date, then start to accumulate from there.
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Agree... even worse if that's imputation tax system, all the tax also included into the deduction... even you pay no tax also need to wait to claim back the money...

This post has been edited by htt: Mar 4 2010, 05:22 PM

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