Dividend Income – August 2018

The 8th month of 2018 brought me only RM574.55 in dividends compared to RM1,880.64 the same time last year. As mentioned in the previous post, this is due to most companies paying in July instead of June and August.

 

IGB REIT

IGB REIT 2018 August Dividend Income
IGB REIT 2018 August Dividend Income

 

This Month’s Dividends – RM574.55

Total 2018 Dividends – RM2,250.06

Dividend Yield – 5.57%

 

These should be all the dividend income from IGB REIT this year.

Total Dividend (2018) – RM2,250.06

Total Dividend (2017) – RM1,785.70

Dividend Yield (2018) – 5.57%

Dividend Yield (2017) – 5.96%

I purchased additional shares in March 2018, giving me a higher total dividend but a lower yield.

I trust in the assets the management has invested in and foresee growth for IGB REIT in the distant future. As with properties, the growth would be a slow one.

 

End.

As a comparison to last year’s performance:

August (2018): RM574.55

August (2017): RM1,880.64

A 69.45% dip in dividend income. We should see dividend income normalize come September.

To summarize,

Freedom Fund as at August 2018
Dividend Income (August): RM574.55
Dividend Income (2018): RM12,754.71
Dividend Yield: 3.47%

14 Replies to “Dividend Income – August 2018”

  1. Hi Leigh,

    I bump into your website a month ago and have now complete reading all of your posts. I have to say that your sharing is really well written and informative. I have a few questions that I’d appreciate if you can provide your thoughts on them, though you’re not compelled to do so

    1) what would be the ideal number of shares that you would consider to be “diversified” enough. Is 5 a good number?

    2) many people advise to go for dollar cost averaging. Wouldn’t this actually cost you more as each time you buy, you are slapped with the brokerage fees.

    3) do you have a separate saving that guaranties your principal apart from your portfolio of shares?

    4) why don’t you invest in bonds?

    5) does the dividen and capital appreciation is taxable in Malaysia?

    6) just wondering what kind of car you’re driving 😉

    Thanks Leigh

    1. Hi Fifik,

      1. 5 would be a good start. Make your way to 20 eventually.

      2. I don’t recommend it because brokers charge a minimum of RM8 per transaction. Unless you’re averaging at RM7K per transaction, it aint worth it.

      3. Yes I do

      4. I do invest in bonds.

      5. The dividend is already taxed at the company level. No Capital gains tax in Malaysia.

      6. I drive an old BMW =)

      1. Thanks Leigh for the reply. Appriciate it. So you mentioned that you do invest in bonds. Do you do it through bursa malaysia as well and as part of your freedom fund portfolio?

  2. Thanks for sharing, Leigh!

    I just started investing in REITs this month, and am looking forward to diversifying my portfolio further as well as minimising unit trust fees (which I’ve been paying for the longest time, unfortunately) as much as possible by learning to invest more in individual stocks. Your helpful (and very inspiring) posts have given me the kick in the butt I’ve needed to finally start changing gears 🙂

    -Michele

  3. Hi Divvy,

    I read about your old post about Malaysian REIT tax treatment, and also this post, whereby the dividend statement says

    2.12 sen per unit – taxable
    0.02 sen per unit – non-taxable.

    My underlying question is, when we receive dividend from REIT, do we have anything to declare? I mean, has the tax payable already been deducted, and that the dividend received is after tax; or we have to pay our tax separately on our own?

    I tried to do some maths, and here is my understanding, please correct me if I’m wrong.

    so your holding is 29,800 shares.
    0.0212 x 29800 = 631.76
    -10% withheld = 568.59 -> this one means the 10% tax already paid, correct?
    plus
    0.0002 x 29800 = 5.96

    568.59 + 5.96 = 574.55 net amount credited to your account.

    You don’t have to do anything on your side, correct?

    Then another question, why is there a non-taxable 0.0002 sen in this distribution?

    Thanks,
    Enric

Leave a Reply