Are these 6 low risk but high yield stocks for you?

by Penny on October 8, 2009



I was reading this month’s issue of Personal Money magazine and one of the feature article for the month under the Investing Insights column talks about 6 Malaysian high-yield stocks that are relatively low in risk. These stocks are considered resilient and yields between 5% to 6% per annum.

They do seem to be better yielding than money sitting in the fixed deposit but are they for you?

The 6 high yield stocks are listed below:

1. Panasonic Manufacturing Malaysia – Stock price RM12.20, dividend 6.5%

2. Amway Malaysia Holdings – Stock price RM7.35, dividend 5.4%

3. DiGi.Com – Stock price RM22.10, dividend 4.5%

4. British American Tobacco (BAT) – Stock price RM45.90, dividend 5.8%

5. YTL Power International – Stock price RM2.21, dividend 6.8%

6. Guinness Anchor – Stock price RM6.54, dividend 6.3%

The stocks listed above aren’t for me. For one thing, a lot of them are very pricy! And of the 6, the cheaper stocks seem to have higher dividend payouts than the more expensive ones.

What are the resilient and high-yielding stocks in your portfolio like? Any of the above in hand already?

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10 comments

{ 10 comments… read them below or add one }

1 Alvin Lim October 9, 2009 at 7:31 am

er…unfortunately not. hahaha. nearly bought YTL power when it was 1.70 but din buy. =_=

another stock i would recommend is Telekom Malaysia – dividend yield around 12% per annum. just make sure u run away once khazanah bail out :P

the banks hv high dividend yield but tend to be riskier.

2 stocktick October 15, 2009 at 8:03 pm

I would go with buying those Big cap stocks you mentioned up there. You can buy small, like 100 lots, and the return is better than buying penny stocks (which in my experience is speculative trading). Now that the bear run has ended, only pessimists stop you from trying. If you look at KLK, back in Nov 2008 it dropped to RM7? and today it is RM14. So don’t let anyone tell you how to invest your money. Try it yourself.

3 abranetwork October 24, 2009 at 8:49 am

so, which company stock you love to invest now?

4 rachel November 17, 2009 at 12:10 pm

Zhulian shares is worth looking at too :)
Thanks for sharing

5 MCLEODS November 21, 2009 at 8:18 pm

Hi, Just follow warren buffet rule, set your profits and get the fundemental aspect of company.

Adios

6 renaye November 30, 2009 at 8:36 am

these 6 shares r not for me because they r just too expensive. the dividend yield is lower than unit trust and much much more expensive. to get that yield, i would rather invest in unit trust.

i believe that we still could get higher dividend yields but cheap stocks. i bought kpj shares at 2.66 and now it has gone up 5.04. i’m now analysing some other cheap shares that will give me steady dividend.

7 Jayce December 10, 2009 at 3:30 pm

I have none of them above. But have some Tanjong shares which have around 6% yield too. ;)

8 Lai Seng Choy December 17, 2009 at 2:49 pm

I own non of them. I used to hold YTLPOWR 3 years ago and its yield then was only about 5% before company tax.

Anyway, I have some REITs and their yield are between 8~12%.

9 Allen Mass March 22, 2010 at 4:39 pm

I have none of them above. Thanks a lot.

10 Wong Mun Keong July 6, 2010 at 12:48 pm

3 of the counters are in my “Value buy” watchlist since 2005 – Amway, Digi and GAB.

I’d buy them if the net DY is >6% (ie. gross DY -25% or 26% tax) as their ROEs have been routinely above 15%-20% yearly with low D/E of 0.5 or below and good margins.

Other than these for DY, perhaps looking at some good REITs is another area.

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