Dividend Income – August 2017

Dividend Income

The 8th month of 2017 fetched me a total of RM1,880.64 in dividends. A pretty good month I’d say.

That’s a 23.8% increase compared to the same month last year, which gave me RM1,518.99.

The total is made up of the following:

CBIP

This Month’s Dividends – RM420

Total 2017 Dividends – RM840

Dividend Yield – 3.77%

Weight – 6.61% of the Freedom Fund

 

Public Bank Berhad

This Month’s Dividends – RM162

Total 2017 Dividends – RM354

Dividend Yield – 3.19%

Weight – 2.86% of the Freedom Fund

 

IGB REIT

IGB REIT August 2017 Dividend
IGB REIT August 2017 Dividend

This Month’s Dividends – RM900.60

Total 2017 Dividends – RM1,785.70

Dividend Yield – 5.96%

Weight – 9.37% of the Freedom Fund

 

Axis REIT

Axis REIT August 2017 Dividend
Axis REIT August 2017 Dividend

This Month’s Dividends – RM398.04

Total 2017 Dividends – RM1,063.03

Dividend Yield – 4.40%

Weight – 7.74% of the Freedom Fund

 

Recent Acquisitions

August has been a relatively uninteresting month for me without any buys / sells.

My recent acquisitions back in July are already looking strong though. TNB is already up by 3% for me.

Aeon Credit has rebounded to RM12.84 per share. Things are looking good.

The next buying opportunity should come election time.

Is everyone’s’ cash / warchest at the ready?

 

Conclusion

Total dividends for the year stands at RM10,574.54. My Freedom Fund currently has a dividend yield of 3.19%.

It’s a tall order but I’ll hopefully see my portfolio pass the 4% dividend yield mark this year.

The Freedom Fund itself is doing great, it’ll be updated come the end of September (Q3).

As of right now, capital gain wise, I’m up almost 30% and the fund has for the first time passed the RM100K profit mark!

 

19 thoughts on “Dividend Income – August 2017

  1. Hi Leigh,

    Writing in again. I collected my first dividend in August for AXIS REIT, thanks a lot for your guidance along the way!

    Just wish to seek your thought on AXREIT as it stands as one of the highest weight in your freedom fund. I read your post they are on a buying spree and project like Nestle DC seems to provide a positive result to the earnings in future. However, share price keep dropping since I bought in May and I’m wondering why. Is this the period “invest for long term” mindset is being tested if we believe what we invested is a good investment?

    I respect your decision if you would not like to give an opinion on this REIT.

    Thanks Leigh!

    • Hey Lim,

      I understand your concern, I’m in the red for Axis as well. Dividend yield for Axis has dropped to just above 4% which I’m not too pleased about.

      Their assets are still strong and resilient though. I’d hold on to Axis for now. Depending on how the management moves forward, I will either add more or get rid of some shares.

      • Hey Leigh,

        Okay, gotcha.
        Wish Axis will have a strong come back in 2018.
        Thanks a lot for sharing your thought, I truly appreciate them!

  2. Hi Leigh,

    What do you think will happen around the election this time ?
    When and how/why would be the buying opportunity ?

    Thanks !

    • Hey Andrew,

      Elections bring about huge uncertainties, especially in Malaysia. With uncertainties come fluctuations in price, most of the time irrational ones.
      Hope this explains it.

  3. Hi,
    Just curious about the dividend received, if tomorrow the company announced that they will given xxx sen per share for their dividend, if I’m top up the share from 1000 to 5000 , will I receive the 5000 share dividend? Or just receive the 1000 share dividend, or if I top up before the ex- date I will receive d 5000 share? Thanks newbie in share market here =p, but feel impressed to c your dividend amount, hoping one day can have 50k dividend per year by using your accumulative slowly way =)

  4. Hi, wondering why are you say so “…most fund managers are like you and I, so why pay them fees?…” Fund manager should be more experience and knowledgeable in a sense that they are managing people’s hard earn money yes? Me too curious what’s the advantage of self trading since for some newbies totally don’t know anything about stock (like me XD…hehe).

    • Hey,

      They should be. Some are. But most aren’t. I think the average person can hand pick a few stocks and still beat most funds in the long term.

      For people who don’t want to spend too much time researching. I suggest sitting down for 5 minutes, have a look around your house and make a list of the top items you can’t live without. Find out the company that produces them or distributes them. Read a little about the company and go through their annual reports. If you like it, buy it.

      Don’t limit yourself to just household items, it could even be that one special shopping mall you frequent every other week.

      Sometimes, all it takes is a little common sense and maybe 30 minutes of research. Hope this helps!

  5. Hey Leigh,

    Can I ask about your thoughts on Star Media Group Bhd? Even though their growth prospects leave much to be desired with newspapers being a sunset industry, from a dividend stock perspective they seem attractive enough, boasting a dividend yield comparable to or even better than that of REITs’.

    • Hey EJ,

      I’ll stay away from the Star. Two main reasons,

      1. The internet
      2. Reporting is no longer credible

      They can give high dividends for now, but as you know it isn’t sustainable.

  6. Hi Leigh. So great that you post dividend income for this month, which is impressive for me since I plan to do the same thing apparently. Btw do you only invest in Malaysian stocks, or you also invest in foreign stocks as well? What do you think of foreign stocks that pays dividend in currencies stronger than Ringgit?

    And you also mentioned that Malaysian-listed ETFs are a joke right now. Do you mean that those ETFs do not really track the movement of the underlying market?

    • Hey Aliff,

      Thanks for your kind words.
      Foreign stocks aren’t really viable if you use local brokers to purchase them. From personal experience, the dividends I receive is a big fat ZERO. I’ve got about USD4K invested but at the end of the day, after deducting fees from both the US broker and our local brokers, I get zero dividends. There are other ways out there for you to invest in foreign stocks though.

      Yup, I think our ETFs are like the top 20 – 40 biggest companies on our exchange. No way does that reflect our market as a whole.

  7. Hi,
    I’m curious, are dividends paid out on any months of the year? I thought they are typically paid out either end of Q1 or end of Q2 etc? However, I see that you have dividend payment in Jul and also dividend payment in August. Are dividends paid out arbitrarily? Can you let me know?

    Also, what are your thoughts on unit trust? Are they good investment tool comparing with direct stocks and even index trading? I know the fees for unit trust are higher vs index trading and about the same vs stocks. What are your views?

    • Hi Andrew,

      Dividends are paid out at different times by different companies. They aren’t fixed at all.

      I’m an astute adversary of unit trusts. I hate them and will never ever recommend them to Malaysians. No, their fees are definitely not the about same vs stocks. May I ask where you got that piece of info from?
      As for index funds, I do hope they arrive here in Malaysia in the future.

      Hope this helped!

      • Thanks, Divvy.

        Well you’re correct actually. Fees for stocks can vary, and is especially cheap if we are trading online. Unit trust has 2 components fees i.e. management fee (~1.5%/annum) and sales charge (~ 3-4%), and this is one off, yes? Therefore, is it right to say that the unit trust will need to beat ~ (1.5+3.5)% first in order to break even?

        Why do you have unit trusts? I went into it because I am financially illiterate and thought that the diversification of UT is a good thing. Just need to beat the fees upfront.

        Reg. index fund, these are also ETFs, yes? I think CIMB has a few ETFs that you can see. I understand that it behaves like UT except that these are passively managed funds.

        Thoughts?

        • Hey Andrew,

          Yes! That 4.6% fee is too damn high. Even with a 1% fee, imagine a portfolio of RM1 million. You can’t see it but you must know how much you stand to lose in fees. Have a read here: http://dividendmagic.com.my/2017/01/13/investing-simple-get-started/

          Forget diversification. My opinion – most fund managers are like you and I, so why pay them fees? Just invest in stocks yourself. With a big enough portfolio, do the diversification yourself. You’re setting yourself back 4-6% every year with the fees. Why? Btw, sales charge is a one off if you stop putting in money. Unless you’re going to throw in that RM100K – RM1 million now, it will add up trust me.

          I do hope all of us will get out of the UT game and see the light. If you’re adamant on UTs, at least go for the cheaper ones like Fundsupermart. Please please please, NO PUBLIC MUTUAL funds.

          Nah Malaysia’s ETFs are a joke right now. They’ve got like what? 40 shares in there? It doesn’t correctly reflect the market imo.

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