Maybank DRP (Dividend Reinvestment Plan)

What is a DRP (Dividend Reinvestment Plan)?

Completed my second Maybank DRP (Dividend Reinvestment Plan) today. One qualifies for a DRP if you’re a shareholder before the Ex-Dividend date. If you’re unsure of what a DRP is, I’ve written about it previously.

To recap, the things you need to do when applying for a DRP are:

  1. Decide how many shares you’d like to receive in lieu of cash dividends;
  2. Sign and date the Dividend Reinvestment Form (“DRF”);
  3. Fill in your CDS account number in the DRF;
  4. Affix a revenue stamp / setem hasil to the DRF; and
  5. Mail the form

Maybank DRP

So back in October, Maybank offered their shares at RM7.25 per share and I applied for the maximum allotted to me – 68 measly units. Back then, RM7.25 was a 5% discount to the current market price. I would’ve made a profit of RM27.88.

After including the cost of the revenue stamp of RM10 and the stamp to deliver the form of RM0.80, that left me with RM17.08 in savings. I vowed to first sort out the calculations before wasting an hour of my life waiting in line at the post office for RM17.

Maybank DRP Setem Hasil
Malaysia’s Revenue Stamp / Setem Hasil

This time around, Maybank offered their shares at RM8.25 per share.  That’s roughly a 13% discount, considerably higher than the 5% offered the last time. Also, instead of 68 shares previously, I was allotted 84 shares this time around. Which translates to RM90.72 in savings for me (based on the market price of RM9.33 today). So this time, I decided to be a little more detailed / anal about my calculations.:

  • RM90.72 (savings) – RM10 (setem hasil) – RM0.80 (stamp) + RM 10 (estimated brokerage fees)
  • Final savings: RM89.92

PosLaju and Revenue Stamps

RM89.92 was worth my time. Went early to the PosLaju near my work area, arrived at 9.30 am sharp and got my number. I waited for about 5 minutes for my turn, purchased the RM10 Setem Hasil and RM0.80 stamp required for postage. I was done by 9.45 am. Wham, Bam! Thank you, Ma’am.

In my experience, it’s best to head to your local PosLaju as early as possible. Any time after 10 am or during lunch hour and you’d be faced with 1 hour-long queues. If your workplace has an office boy handling your mail, you can also seek his/her help out with this.

Also, you’re only able to get your revenue stamps / setem hasil at PosLaju outlets and from LHDN. I’ve tried enquiring at other more convenient places like Mailboxes etc but unfortunately, they don’t sell revenue stamps.

Maybank Dividend Reinvestment Plan DRP
Pos Laju
Dividend Reinvestment Plan (DRP) Malaysia
Affixed the 80 cents Stamp

Maybank 2017 Dividend

Maybank Dividend
Malayan Banking Berhad

Now, to the numbers. My gross investment in Maybank is RM25,723.21 with an average price of RM8.1197 per share. Notice the dividend totaling RM1,013.76 in value. That’s the first interim dividend Maybank is paying me which gives me a dividend yield so far of 3.94%. Opting for the 84 units in shares, I’ll be receiving the remaining RM316.80 in cash. Traditionally, Maybank’s final dividend payout in October will be slightly higher than their first dividend.

Think on that for a moment. This is Malaysia’s largest bank and I’ll be receiving (if all goes well) 8% in dividends from them. And I’m not even including my capital gain. So to those of you who’ve been asking and comparing my dividends to FDs. This is what I’m talking about. In the long term as the companies I invest in grow from strength to strength, so does my dividends. It may be 1-2% now but they’d be growing every year, some drastically like Maybank’s 8%. However, your FDs will follow the board rate, always hovering at 3-4%.

This 8% yield is possible because I managed to purchase their shares back when everyone was worried because Maybank lent money to 1MDB. With some common sense, you’d realize that the bank’s loan to 1MDB is minuscule and negligible compared to their entire loan portfolio. So why the fuss?

Even now at RM9.33 per share, the yield would be 5-6%. If I had been more diligent in watching Maybank, I’d have been able to snap them up at even lower prices. Learn how to start investing hERE.

End.

With Maybank DRP this time, I’d be adding 84 additional shares to my portfolio at the cost of RM10.80. Managed to save about 90 bucks with this exercise so I’d say it was a morning well spent. I even got to fill my stomach with some delicious prawn mee nearby at Restoran Fong Lie. It’s one of the best prawn mee in town.

Anyone else opted for Maybank’s DRP? Or did most of you take the dividends in cash instead? 

As always thank you for reading!

Prawn Mee Malaysia

8 thoughts on “Maybank DRP (Dividend Reinvestment Plan)

  1. I do not normally do DRIP as I find it a bit troublesome having to go to post office. Cost saving on brokerage fees is a not real, as it also incurs brokerage fees when you sell them. And I also don’t like having odd lots, which incur additional brokerage fees when you want to sell them. DRIP only beneficial if you have number of shares purchased that is nicely rounded and significant enough.

    • Hey Lye,

      Thanks for writing in. Yes it really is a hassle to get to the post office.
      I disagree on the cost savings of brokerage fees though because for me as a long-term investor, I rarely sell my stocks. So the savings on the fees I would’ve incurred purchasing those 84 units of stocks is real for me. =D
      As for the odd lots, the same thing applies because, in the long term, those small odd units add up.

  2. Hey Leigh,

    Many thanks for the very informative and detailed post. Enjoyed reading it immensely. I’m eagerly waiting for my first dividend from Maybank. Tycor sent a SMS to my cell phone May 12, informing me that the NOE and DRF of Maybank have been “despatched” to me on May 11. But so far I have not received them yet. So, two questions: First, what is the due date for returning the DRF? Second, if I do nothing, I suppose Maybank will just give me cash dividend, electronically transferred to my savings account?

    • Hey Lai,

      It has always been and will be my pleasure. =D
      Hmm, the deadline is 25th May for the form to reach them. Wait a day or two more. If it still hasn’t arrived, you might want to give Tricor a call.

      You’re right, if you do nothing, you’ll still receive the dividends in your bank account.

  3. Hi Leigh!
    It is always exciting to read your freshly written blog. Thanks for all the information!
    I just started to read “The Intelligent Investor”, preparing myself with the knowledge.
    =)

    • Hey Hong,

      Thank you! For your kind words as well as for writing in.
      That’s a good book and should start you off well enough! Let me know how you find it after.

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