Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

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Hello 2020!

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My Goals

Financial

Let’s start off with my goals set way back in 2018.

  • Dividend yield > 5%
  • Total dividends > RM20,000 p.a.

Those were the goals I set out to achieve at the start of 2019. Here’s where I am at now.

  • Dividend yield:  4.16%
  • Total dividends: RM16,322.27

As compared to 2018, both my yield and my total dividends have dropped. I can attribute this to the bad performance of some companies I hold and the markets not doing well. But at the end of the day, it is on me because I held on to those stocks and I should be ahead of the market.

So, come 2020, I’ll be sprucing up and making some changes to the Freedom Fund. Time to get the dividend yield above the 5% threshold, lock in some profits and cut some losses.

For 2020:
Fix the Freedom Fund. The aim is still 5% dividend yield per annum with the final goal being RM36,000 in total dividends every year.

Thereafter, I’d want to set aside some money to invest in riskier, high growth potential companies.

The Blog

The blog has been making steady progress over the years. Dividend Magic has officially crossed the 1 million views mark. It’ll be exciting to see how the site does in the coming years.

You may have come across a few more Sponsored Posts than usual.
I’d like everyone to know that I vet through and at the end of the day only take on jobs that I personally approve and use. So, the next time you see the tag [Sponsored], do know that it’ll probably bring some value to you.

For 2020:
I’ve made a decision moving forward to focus on quality as opposed to quantity when it comes to sponsors. I’ll be choosing to work with a select few that relate closely to investing and what I’m writing about.

Health

In the past, I’ve been focusing a lot on financial goals but I’d like to keep myself accountable on the non-financial aspects of my life as well. So the goals will be a little more personal this time around.

I’ve been hitting the gym 5 times a week now. Also, instead of the usual strength and vanity muscle workouts, I’ve been focusing on mobility and stretching.

Meditation is also a big part of my routine now. If you all want to be more productive and focused on basically everything, I highly recommend meditation. It’ll take up only 10-20 minutes of your day.

For 2020:
I’d want to continue my 5-times a week work out sessions.

Also, I’d like to make meditation a permanent routine and habit of mine. First thing in the morning and one more in the evening.

And, a better diet.

Personal

I’ll be increasing my budget for travel as well as for food moving forward. So look forward to more posts and photos like this on my Instagram.

View this post on Instagram

#buffet . #wagyu . #nais

A post shared by DIVIDEND MAGIC (@dividendmagic) on

and this

End.

This is how the Freedom Fund looks going into 2020.

Gross Investment: RM392,717.20
Market Value: RM458,476.77
Dividends (2019): RM16,322.27
Dividend Yield: 4.16%
Special Dividend: RM11,970.00

2020 would be a good year to start investing. If you’re looking to start, start hERE. If you haven’t got the funds, please start saving.

To a stellar year ahead. Onwards and upwards.

Follow me on Facebook and Instagram to keep up with my dividend income updates.

Dividend Income – December 2019

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Dividend Income

The Freedom Fund yielded a total of RM779.50 in dividends for the last month of 2019 as opposed to RM1,111.65 last year. A 29.88% decrease.

Axis REIT

December 2019 Dividends – RM327.24
December 2018 Dividends – RM437.30
Total 2019 Dividends –  RM1,015.53
Dividend Yield – 5.85%

I received an additional RM105.42 in dividends from Axis REIT not shown in the above voucher.

Sunway REIT

December 2019 Dividends – RM312.26
December 2018 Dividends – RM310.35
Total 2019 Dividends –  RM1,214.75
Dividend Yield – 6.12%

An increase in yield from 5.95% in 2018 to 6.12% this year. A win.

Nestle (M) Berhad

December 2019 Dividends – RM140
December 2018 Dividends – RM140
Total 2019 Dividends –  RM560
Dividend Yield – 4.19%

An increase in yield from 4.11% last year to 4.19% this year.

End.

I’ll have my full review of 2019 coming up soon including the goals for 2020.

Freedom Fund as at December 2019
Dividend Income (Dec) –  RM779.50
Dividend Income (2019) –  RM16,322.27
Dividend Yield – 4.16%

As always, Facebook and Instagram. Follow, keep up to date.

Cashback Galore – Watsons

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This article is authored and brought to you by one of our long-time readers – Alan Toh.

I did some minor editing. Enjoy!

Shopping for personal care products, skincare, cosmetics, and health supplements

Surely all of us have been to Watsons’ chain of pharmacies at some point in our lives. Be it to purchase personal care products, skincare, cosmetics or health supplements. And who wouldn’t like to receive cashback for all these purchases?

Well, I am here to introduce – the ULTIMATE guide to earn cashback from all of our purchases from Watsons’ .

Method 1 – Watsons’ VIP Membership

One may think that this is a pretty straight-forward way of earning points for every RM spent by just simply flashing the Watsons’ VIP membership card (or phone number registered with the membership) upon checkout at the cashier. You’re wrong.

As the Watson’s VIP Membership card comes with a built-in Touch n Go feature, users are encouraged to pay for their purchases at Watsons’ with Touch n Go by giving out very generous points multiplication.

Right now, for every RM paid with the Watsons’ VIP – Touch n Go card, users will be rewarded with 10x the points.

As an example, or every RM20 spent with the card, users will receive 200 points, equivalent to RM1 in cash value. That in itself is a generous 5% cashback (uncapped, of course). Not only that, Users can be rewarded with an additional 5x – 10x points for some selected products (just look for the tags on the aisles at Watsons).

Of course, in order to use the Watsons’ VIP membership card’s Touch n Go feature for payment, you need to have sufficient balance in the card. The card can either be reloaded without any fees at any Watson’s store using cash or with a credit card (note: accumulate credit card cashback or rewards points for every top-up performed) at any of the locations. You may double confirm the locations hERE.

In conclusion, not only do we get rewarded with Watsons’ VIP points worth between 5% – 7% in cashback, we would also be able to collect credit card cashback or rewards points as well. That could mean about 10% worth of cashback for our shopping at Watsons.

If you take a look at the example above of a purchase that I recently made using my Watsons’ VIP membership card, you can see that I received 6248 VIP points for my purchase of RM472.45. The value of the points received is worth RM31.24, which translates to a cashback value of 6.6%. In other words, I get to use the points earned for my next purchase at Watsons’, saving me a total of RM31.24 in value.

As of Jan 2020, Watsons’ may have reverted the 10x points to 5x.

Method 2 – BOOST Your Purchases

The second option would be to use Boost to pay for your purchase at Watsons’ store. The cashback reward for this method would usually turn out to be lower than the first method, but if reloading Touch n Go is a bit of a hassle for you (or if you are one who owns a credit card which rewards cash back for online purchases), then Boost is the way to go for.

The method here is fairly simple though, you’ve got to reload your Boost with a credit card (note: DO NOT use a Maybank Card to reload as you will not receive any reward), then flash your Watsons’ VIP Membership card together with your Boost QR code for payment upon checkout.

Remember to shake your Boost for coins (it’s the only way you would receive cashback from Boost). The typical cashback amount you would receive from Boost is between 2.2% – 8.8% depending on your luck with the Bonus coins reward and your Boost level. On top of that, you would receive up to 5% cashback from your credit card (usually capped at RM50 per card) and the usual 1 VIP point per RM spent from your Watsons’ VIP membership card (equivalent to 0.5% of cashback).

All in all, you may receive up to 18.8% of cashback using this method (up to 6.6% from Boost, up to 5% from credit card and up to 5% from Watsons’ VIP membership card if the item rewards with 10x points) if lady luck is on your side.

Method 3 – Mother of all Cash-Backs with Touch n Go eWallet

The final method, which could probably be the BEST method for earning cash back from Watsons’ store would be payments made using Touch n Go eWallet. You see, Touch n Go eWallet would occasionally collaborate with Watson’s to reward users with the Ultimate cashback of up to 16% (yes, you heard right, Watson’s and Touch n Go eWallet would give you RM8 in cashback for a minimum spending of RM50 and above in a single receipt).

Bear in mind though, each Touch n Go eWallet user is entitled to receive this cashback only ONCE throughout the campaign period and to make matters worse, the RM8 cashback is only limited to the first 25,000 transactions at all Watsons’ stores. So if you would like to earn up to 16% + up to 5% cashback for your purchases of RM50, then be sure to be one of the earliest to pay with your Touch n Go eWallet for your purchase at Watsons’.

Do keep in mind that the cashback from Touch n Go eWallet is capped at RM8 for purchase of RM50 and above in a single receipt, so try to use a combination of payment methods if your purchase amount is higher than RM50 in order to maximize the amount of cashback you could receive.

Watsons’ new campaign as of 2 Jan 2020 – 26 Feb 2020 is RM8 cashback for a RM60 minimum spend.

Bonus Money Saving Pro-Tip

Occasionally, Watsons’ would give out RM5 cash vouchers during their own campaign period, which is claimable the following week after the end of their campaign period. These vouchers would entitle customers to get RM5 off for purchases of RM50 and above in a single receipt. That is another massive 10% rebate on top of all the cash backs above!

End.

The amount may be a little small for some of you but cashback is cashback to me. Also, TnG’s eWallet is one of the most worthwhile ones out there currently.

Thank you again Alan.

A list of recommendations and stuff I use can be found hERE.
As always, Facebook and Instagram. Follow, keep up to date.

Dividend Income – November 2019

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Dividend Income

The Freedom Fund yielded a total of RM1,001.07 in dividend income compared to RM1,806.62 the same time last year. That’s a 44.59% decrease in dividends.

Aeon Credit Service (M) Berhad

November 2019 Dividends – RM378.25
November 2018 Dividends – RM378.25
Total 2019 Dividends –  RM758.20
Dividend Yield – 3.36%

The exact same amount of dividends received for both November 2018 and 2019. The company has been a solid performer in the Freedom Fund so far.

IGB REIT

November 2019 Dividends – RM622.82
November 2018 Dividends – RM615.37
Total 2019 Dividends –  RM2,491.92
Dividend Yield – 6.14%

One of the few darling stocks in my portfolio. The yield has dropped slightly compared to last year’s 7%.

End.

This post is coming a little late so be ready to catch my December update soon. The year-end review will be included as well.

Freedom Fund as at November 2019
Dividend Income (Nov) –  RM1,001.07
Dividend Income (2019) –  RM15,542.77
Dividend Yield – 4.16%

As always, Facebook and Instagram. Follow, keep up to date.

[Sponsored] Bursa Market Place – MLT Platform

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My MLT Platform Portfolio

I go by the name Dividend Magic on Bursa’s MLT platform and the above is my portfolio’s current performance.

I’m currently mirroring the stocks from 3 different analysts, using the platform to try my hand on penny stocks based on the analysis of the Traders.

If you are however a first-time investor, do focus on the more established stocks. I’d suggest looking at a stock on your own, do your own analyses and then compare what you found to the licensed Traders on the MLT platform. Trust me, you’ll be able to pick up a lot in no time at all.

How You Should Use It

I had the pleasure of meeting with the Bursa MLT team last month. The two main purposes of the new platform are to encourage participation in the stock market as well as to educate Malaysians on sound and effective investing.

There are opportunities in investing in the stock market that Malaysians are missing out on, especially the youths. As I’ve always been advocating, investing should begin as early as possible.

If you are a total beginner, Bursa’s MLT platform serves as a good place for you to start and familiarize yourself with stock investing and trading.

There are currently 9 analysts on there from which you can follow and mirror their trades. These are investment analysts that are licensed in Malaysia to research and come out with reports on companies in the stock market and recommend if you should buy, hold or sell a stock.

The analysts on the platform actually follow up on their reports on the companies they cover and perform virtual buy or sell trades on the individual stocks.

What does this mean for you as an investor? You get to understand the WHY.

Why did Analyst A actually purchase Stock B yesterday? It’ll be in their commentary on the platform and if you’ve got any additional questions, fire away in the MLT Community tab.

I’d suggest new investors to start mirroring the Traders on the platform and trade virtually. Eventually, once you’ve familiarized yourself with it, start putting in actual trades on your own trading account and start investing for real.

If you’re interested in opening an account, you can start hERE.

My Review

The platform serves as a really good way for first-time investors to start investing in the stock market. You as an Investor would be given a virtual starting capital of RM100K. Thereafter, based on the Traders’ analysis and picks on the stocks in their portfolios, you choose which stock to mirror.

By mirroring the stocks, you effectively add them to your own portfolio and its all autopilot from there. The platform automatically calculates your profit or loss based on your very own virtual portfolio.

One thing many of you highlighted as Investors was that you were unable to find and mirror your own individual stocks. Instead, you had to find it in a Trader’s portfolio and mirror it from there. I believe this is built in such a way so that as an Investor, Bursa wants you to learn from licensed analysts so that you understand why trades on the stocks were decided based on their fundamental reasons and technical analyses.

How to Sign Up

Firstly, the MLT platform is only open to residents of Malaysia. Users must be individuals 18 years of age or older as at the date of entry into the platform.

Also, another reason to sign up is the monthly lucky draw giveaway.

You may find the link to sign up hERE.

Here’s a video on MLT:

Dividend Income – October 2019

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Dividend Income

The Freedom Fund yielded a total of RM2,267.94 in dividend income compared to RM599.64 the same time last year.

That 278% increase in dividends is because the dividend payment from companies this year has gone haywire. Cumulatively, I’m still down about RM1K this year.

Malayan Banking Berhad

October 2019 Dividends – RM839.25
October 2018 Dividends – RM813
Total 2019 Dividends –  RM1,891.41
Dividend Yield – 4.49%

The full-year yield at 4.49% is lower compared to last year’s 6.99% as I added more units in September this year.

Genting Malaysia Berhad

October 2019 Dividends – RM288
October 2018 Dividends – 0
Total 2019 Dividends –  RM288
Dividend Yield – 1.96%

Nothing to compare to last year. Bought GENM a few months back and I’ve already got a 2% yield on it.

Many of you have messaged me with concerns on GENM regarding the management. Yes, I do share the same concerns but the company as a whole will be able to pull through. Provided no more fuck-ups by the management.

Tenaga Nasional Berhad

October 2019 Dividends – RM600
October 2018 Dividends – RM302.70
Total 2019 Dividends –  RM830
Dividend Yield – 3.19%

Comparing is useless in this instance as I purchased TNB shares this year as well. Yield has dropped a little as well compared to last year.

Nestle Malaysia Berhad

October 2019 Dividends – RM140
October 2018 Dividends – RM140
Total 2019 Dividends –  RM420
Dividend Yield – 3.14%

A slight increase in yield compared to last year. One more dividend to go in December.

Sunway Berhad

October 2019 Dividends – RM257 + RM143.65
October 2018 Dividends – RM296.94
Total 2019 Dividends –  RM709.81
Dividend Yield – 6.16%

The reason I split the October dividends is because Sunway distributed its profits in cash as well as in shares. Yield increased to 6.16% compared to 4.84% last year.

Sunway has been growing steadily and silently over the years for me and now that it hit the 6% yield mark, I think people will start paying more attention to the group.

End.

We are at a total dividend income of  RM14,541.70 . Giving the Freedom Fund a yield of 3.70%. 

Freedom Fund as at October 2019
Dividend Income (Oct) –  RM2,267.94
Dividend Income (2019) –  RM14,541.70
Dividend Yield – 3.70%

As always, Facebook and Instagram. Follow, keep up to date.

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