Posted by liew kimguan > 2012-09-06 14:22 | Report Abuse

fully agree^_^

Posted by kcliew > 2012-09-06 14:30 | Report Abuse

101% agreed.

Posted by liew kimguan > 2012-10-06 23:17 | Report Abuse

anyone can give comment for TWS. Since this counter have drop to attractive point. if based on current dividend 0.45 / current price 6.68 = 6.7% dividend yield. can consider worth to buy?

Posted by jpleow > 2012-10-07 12:13 | Report Abuse

My own experience in BjToto proved this point:

I accumulated most of my BjToto shares when it drop sharply in 2002 due to intercompany loan issue. After that I sold around 16% of it when its price rose & hold the rest until now.

So far I have received so much dividends & capital repayment that my net cost (total buy – total sell – total income) is already negative, i.e. I have recovered all my cost! It is now the largest shareholding & top performing stock in my portfolio!

I leave it ‘auto-pilot’ most of the time, don’t even bother to look at its price. Just shake legs & waiting for dividend cheques to arrive almost every quarters. Now with e-dividend, don’t even need to deposit the cheque :)

Posted by kcchongnz > 2012-10-07 12:39 | Report Abuse

When a dividend is declared, a tax of 25% is taxed and gone to Income tax department. Only 75% goes to shareholders. Shareholders who are the owners of the company lose 25% of their own money. Shareholders can't claim back any now under the single tier tax regime, whereas there is no capital gain tax here. Notice that the share price normally drops the same amount of dividend ex on that day? So theoretically declaring dividend is not good to shareholders as opposed to share buyback or just keep the money for expanding the business. If the company's business has a high return of capital, say more than 15%, isn't it good that the money to be retained in the company earning more than 15% rather paid out and shareholders who save the money in say bank account returning only 3.5%, and worse still spend the money away? Berkshire Hathaway never declare any dividend and its compounded annual return has been in the twenties percent. No, I am not advocating buying shares which do not pay dividend. In Malaysia, if company make money and don't pay dividend would likely waste the money away one day, and worse, management may squandered all the money.

Posted by jpleow > 2012-10-07 13:13 | Report Abuse

Under the Single Tier tax system, companies pay out dividends from the profit after tax, so, whether they pay dividend or not, it is already taxed.

This is different from previous system where companies transfer their tax to shareholders in dividends & the shareholders may claim back the tax based on their taxable income levels. So, those shareholders with low taxable income actually gain more!

You can think of dividends as a kind of profit taking. Rather than buying & selling the stock to obtain capital gain, you get profit on dividends.

I think in a balance portfolio, you should have a mix of high dividend yield stocks, high growth stocks, under-valued stocks, cyclical stocks, etc.

Posted by andy118 > 2012-10-07 13:14 | Report Abuse

Best is to pay dividend in terms of share if the dividend is subject to tax at 25%. Once received the shares the shareholder can either hold or sell any amount they like according to their choice. If they need the money they can still sell it or invest in other counters that can offer a better return. If not just keep it.

If the company does not pay dividend, then the share price may not go up much and the management may squander the money away or privatise it on the cheap. Look at KPSCB, company is earning good EPS but never pays dividend.

Posted by kcchongnz > 2012-10-07 13:20 | Report Abuse

jpleow, thanks for pointing out about the tax treatment of dividend. I think you are right. I also agree that your view on a balance portfolio. Oh I love this kind of forum with people like you. Learn new things.

Posted by Penang Ran > 2013-08-18 20:17 | Report Abuse

需知投资基金如公积金局、保险公司、单位信托、资产管理公司等，都拥有庞大的资金，不断的寻找投资机会，他们对高股息的好股，虎视眈眈，股价若暴跌，他们不会错过买进的机会，故这类高息股，即使短期下跌，长期必然回升。
Thus, have to follow EPF moving from now on if we are looking for high DY ?

Posted by Tiago Gt > 2013-08-18 20:30 | Report Abuse

uem is one of the company...