Dividend Income – July 2017

Dividend Income

After the high of June’s dividends, RM552 in dividends for the month of July was lower in comparison. Same time last year, I received RM420 in dividends. A pretty decent 31.4% increase y-o-y.

Average Dividend Increase (so far) – 37%

I’ve started tracking my dividends received closely and, although I may be jumping the gun here (as it isn’t even December yet).. BUT, as of now, my monthly dividends have been increasing every month! With the exception of March because good old CBIP Berhad paid a special dividend last year.

On average, my dividends have increased 37% in 2017. Goodbye inflation, goodbye Fixed Deposits. This is why I invest in shares and companies. My returns increase with time, while ‘investments’ like FDs will stay at the 3-4% levels for years, even decades.

Full disclosure, I did add RM2,500 and RM15,000 to my investments as additional capital in December 2016 and June 2017 respectively but that hardly impacted the 37% increase in dividends.

Also, I’m not implying FDs are useless, they have their uses but are essentially useless as investment instruments.

Moving on.

Scientex Berhad

Scientex Dividend Income July 2017
Scientex Berhad’s July 2017 Dividend

This Month’s Dividends – RM552

Total 2017 Dividends – RM1,312

Dividend Yield – 4.48%

Weight – 19.40% of the Freedom Fund

Recent Buys

Aeon Credit  1,000 units

Their dividends have been increasing every year for 5 years now. However, the price has dropped by 5% since my purchase.

Tenaga – 1,000 units

Good dividends, almost a monopoly on our country’s electricity. Moving into other countries.

Their close links to the Malaysian government are a double-edged sword.

IGB Corp – 4,000 units

Highly undervalued and overlooked because of the pending offer by Goldis Berhad.

Conclusion

Total dividends for the year stands at RM8,690.90. My Freedom Fund currently has a dividend yield of 2.69%.

Thank you for reading!

12 thoughts on “Dividend Income – July 2017

  1. Hey Leigh,

    Always good to see your updates man.

    I’m looking to buy into Scientex but seems like the stock price has really taken flight recently and I’m not sure if now’s the best time to buy into it. To your knowledge, are there any news recently that may have caused this surge? I tried searching but came up with nothing. 🙁

    Anyway, am I paranoid for feeling jittery about buying into anything now that election is looming? Again to your knowledge is my paranoia historically justified?

    As always, thanks for letting us pick your brain!

    • Hey EJ,

      Yes the stock is at it’s highest ever. Like I’ve always been saying, if we’re investing long term, the best time to buy was yesterday, second best time is now.
      It’s always better to stay invested. The price could skyrocket in the next few months.

      I’m valuing the stock at around RM9.2 currently, it’s a very conservative value though. My advice, when you’ve saved up, invest.

      As for elections, historically prices do drop before the results are out. You may have a buying opportunity there. We all do. =D

  2. Hello, it’s been a while since I’ve last written in . This time around, I’m writing to ask the metrics by which you judge a stock and decide whether you want to buy it or not. I also wish to clarify with you on whether or not expecting a 7 percent return p.a on your investments is realistic (assuming the investor is on the conservative side of course) Thanks in advance:)

    • Hi Rex,

      Good to hear from you again! There are tonnes of metrics to judge a stock by. I could spend a week explaining all of them. However, I deem a company’s profits and future profits as well as market share the most important.
      If you’re really conservative, I’d say a 5% is more realistic.

      Hope this helped my friend.

      • Thanks for the explanation. Also, just for clarification, what exactly do you mean by really conservative? Do you mean someone who dumps all their money into REITs, bonds and just can’t stomach seeing their stash cut even by 10 percent in a market correction? If so, rest assured,my risk tolerance is a tad bit higher than that. I have enough self – knowledge to know that I can stomach seeing my portfolio cut in half if a recession takes place.

        • Hey Rex,

          Well I guess you’re not conservative then. =D
          Look, with higher risk comes higher POTENTIAL returns. I think many people forget that.

          I’d suggest you take a risk assessment test to determine your risk profile. You can find many free ones online.

  3. Hi, thanks for the monthly update, I’ve been reading your blog since half a year ago, learn alot from your blog, I even make my first step in buying companies shares for their good dividends. Keep the good post!

  4. For Tenaga, I agree that it’s a double edged sword because of the government link but it has a strong moat business model. As long as Malaysia economy keep on growing so will TNB.

    I hope I have more money so that I can collect some TNB share…

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