jason, there are many reasons that I can think of, some of it include- a) epf disposing to meet i-sinar redemptions b) fund mgrs rotating from defensive assets -> growth stocks c) inflation outlook is heating up as oil prices and raw materials rose and yes, inflation comes before rate hike, but in stck mkt, stock prices react well before the actual thing happens. and in a rising interest environment, reits with big floating rate loans will incur additional finance costs compared to fixed rate loans. So for axis, the 47% of the loans will incur more interests when rate is up.
anyway, just received forms for the DRP today, will sign and mail back soon :) if u do not intend to enroll in the reinvestment plan, just ignore them.
1.85 now what should shareholders do redeem full dividend buy from open market? The price should recover but for immediate action for shareholders for the next few days let's say.
@newbie2y, on 23 May 2018 a final dividend of 32sen/share with DRP @RM10/share from the electable portion of 14sen was called off. Yes, a full cash payment was made instead.
However, on the 18 Sep 2018 an interim dividend of 25sen/share was announced for the subsequent quarter with DRP @RM8.80/share being reinstated with electable portion of 10sen.
i3kyan, good question, there are a few things u can consider - a) the dividend payment date is 11-March, will the price be higher than 1.88 or lower than 1.88 by then? b) how many units u are entitled with this drp, and how many u plan to buy on 11-Mar if u skip the DRP? what is the difference in terms of the costs? what is the impact to our average costs? c) do u plan to go for short term or long term?
for me, as I am long with it, i dont mind if the drp price is higher than market price, and my units entitled are not big enough to make much difference compare to i buy myself in the market by then, considering the drp is without costs (except for the stamp). But if you are short term, then yes, u shud consider take full cash.
I am too new to this too, and my agent is not very responsive. There is this stamp duty rm10 and i have only 99 units entitled coz i have about 17000 units so that's like very little to be entitled to. Doesn't seem to be worth it to take up the offer and pay stamp duty that i need to get a cheque or what ya? It is not postage stamp. Buy in the open market at below RM1.86 and get the whole dividend is better in my situation? Can please give advice so i can understand the best decision for me. I am a long term investor.
shazza, for ur case, u have few options- 1. fork out own money to buy today, say at price 1.86, 100units, cost will be about RM10 +/-, so dividend u can take full cash. 2. go for drp, pay stamp duty RM10 + postage stamp RM1.50, 99units priced at 1.88. 3. ignore, do nothing and take the full cash.
question u can ask urself- i) option 1 - do u need to buy more than 100units? so it is more worth the commision/stamp duties paid? what will this do to your final avg costs? ii) option 2 - what will be the final avg costs? will result in oddlots, u plan to sell all soon?
Thanks newbie2y for breaking it down much more clearly. Will go for option 3 do nothing since i qualify for so little. And get a bigger quantity in the open market at lower than 1.88 if it is possible. If matched, well and good, if not, it is fine too.
newbie2y thanks makes sense. Ini semua i-sinar punya pasal... anyway i am holding.. i see much upside on this for future. Earnings Yield is bearable. and so is Dividend Yield.
1). Low interest cost. Borrowing cost low. High dividend per share will attract many conservative savers 2). Economy will be recovered. Rent occupancy will be high 3).low share price as EPF and others are dumping to get cash to pay dividends
You will regret if you don't have this share below RM 2. From the recent two purchases you will notice that the co is expanding Now many Reits co can do expanding. You see IGB Reit and Pavillion Reit..etc you will know what I am talking about..they really don't do expansion
Igbreit actually expanding with johor mall. They waiting it to stabilise with rental first before injection. But i precfer the axreit now actually, it shows its strong performance in even mco time. Tested and proven,
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newbie2y
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Posted by newbie2y > 2021-02-22 21:30 | Report Abuse
jason, there are many reasons that I can think of, some of it include-
a) epf disposing to meet i-sinar redemptions
b) fund mgrs rotating from defensive assets -> growth stocks
c) inflation outlook is heating up as oil prices and raw materials rose
and yes, inflation comes before rate hike, but in stck mkt, stock prices react well before the actual thing happens. and in a rising interest environment, reits with big floating rate loans will incur additional finance costs compared to fixed rate loans. So for axis, the 47% of the loans will incur more interests when rate is up.
anyway, just received forms for the DRP today, will sign and mail back soon :) if u do not intend to enroll in the reinvestment plan, just ignore them.