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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?
{ 16 comments… read them below or add one }
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
the banks hv high dividend yield but tend to be riskier.
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.
so, which company stock you love to invest now?
Zhulian shares is worth looking at too
Thanks for sharing
Hi, Just follow warren buffet rule, set your profits and get the fundemental aspect of company.
Adios
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.
I have none of them above. But have some Tanjong shares which have around 6% yield too.
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%.
I have none of them above. Thanks a lot.
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.
Amway is good company and steady share price, but the Earning Yield is dropping and dividend yield also dropping. Anyhow, still a good choice as compared to bank’s FD.
Zhulian offers better earning yield and higher potential as the GP Margin is much higher than Amway, simply because in Malaysia, Amway is only a trading arm but Zhulian is both manufacturing and trading, therefore have better margin.
Very nice list. You should consider looking into monthly dividend stocks, many have very nice yields.
How bout Nestle?
Don’t forget the tax factor. Some of the dividend rates are gross rates and you have to consider 25% tax. If a dividend is 5% gross and take away 25% of it, you end up with only 3.75% which is not really very much higher than FD. Look out for those with Tier-dividend which means nett of tax upfront already like Yi-Lai or GAB. I like REITs because they only attract 10% tax and at current price, some stocks like AMREIT still give above 7% nett. Stocks like MSNiaga and Yilai also yield approx 7% nett currently.
maximum only 10% of tax?
For individual investor, it depends your personal tax. If you are already in high income tax bracket of 24% or 26%, reit is really very attractive as the withholding tax is only 10% and it is final, I.e. no need to be taxed again.