Dividend Magic

Saving and Investing towards Financial Independence in Malaysia

Dividends

Dividend Income Update 2020

By 10

August

Freedom Fund as at August 2020
Dividend Income (Aug) –  RM872.67
Dividend Income (2020) –  RM12,114.15
Dividend Yield – 2.71%

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

Received a total of RM872.67 in dividend income for August. A slight increase compared to 2019’s RM832.21. A 5% increase.

Thoughts

With Q4 closing in fast, I’m keen to see my investment portfolio reach the 3% mark in dividend yield. Pretty sure we won’t be able to surpass 2019’s yield of 4.16%, but you never know!

I think markets will continue to be volatile and stock prices do not accurately reflect the Malaysian economy right now. This is the first time I’m seeing such market enthusiasm during a pandemic and when businesses all around us are closing down.

I’ll continue to hold on to more cash as I sell off some positions. I’m looking to purchase more Real Estate Investment Trust (REITs) stocks and a few good companies I’m currently holding right when the price is right.

As I’ve mentioned a few times, my Malaysian portfolio will be built and centered around dividends right now. While my US stock portfolio will be more focused on growth and capital gains.

Duopharma Biotech Berhad

August 2020 Dividends – RM500.00
August 2019 Dividends – N/A
Total 2020 Dividends –  RM500.00
Dividend Yield – 3.55%

I’ve been selling off this stock and taking profit over the past few weeks/months. All in all, I’ve probably made close to 200% profit on average from the aforementioned sell off.

IGB REIT

August 2020 Dividends – RM207.01
August 2019 Dividends – RM609.37
Total 2020 Dividends –  RM1,443.29
Dividend Yield – 2.78%

Sunway REIT

August 2020 Dividends – RM515.66
August 2019 Dividends – RM298.38
Total 2020 Dividends –  RM822.48
Dividend Yield – 1.77%

July

Freedom Fund as at July 2020
Dividend Income (July) –  RM1,722.67
Dividend Income (2020) –  RM11,241.48
Dividend Yield – 2.62%

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

Received a total of RM1,722.67 in dividends for July this year. Comparatively, in 2019, I received RM1,409.95. That’s a 22% increase.

To compare against last year’s performance, I’ve compiled and combined all 2019’s dividend income update hERE.

With the interest rates in Malaysia at an all-time low right now, conventional FD’s are no longer attractive. It is times like these that strong, stable companies with their consistent dividend payments shine. We are only in July and my yield is already above the board rate.

Aeon Credit Service (M) Berhad

July 2020 Dividends – RM154.00
July 2019 Dividends – RM379.95
Total 2020 Dividends –  RM154.00
Dividend Yield – 1.22%

Aeon Credit has been hit hard in Q2. Will be looking to maybe trim down a little to pounce on future buying opportunities.

Scientex Berhad

July 2020 Dividends – RM1,180
July 2019 Dividends – RM1,030
Total 2020 Dividends –  RM2,210
Dividend Yield – 4.05%

Dividends increased a little as I added more units of Scientex to my portfolio during the MCO period.

The company has managed to keep their dividend payments unchanged amidst the Covid-19 pandemic.

Axis REIT

July 2020 Dividends – RM198.67
July 2019 Dividends – RM221.71
Total 2020 Dividends –  RM311.26
Dividend Yield – 1.79%

Genting Malaysia Berhad

July 2020 Dividends – RM190.00
July 2019 Dividends – RM –
Total 2020 Dividends –  RM532
Dividend Yield – 4.73%

June

Freedom Fund as at June 2020
Dividend Income (June) –  RM112
Dividend Income (2020) –  RM9,518.81
Dividend Yield – 2.27%

Dividend for 2020 has also gone a little haywire I guess. May’s dividend income was exceptionally high and now in June, as expected, I’m experiencing an unprecedented low.

However, cumulatively, dividends for 2020 are still higher compared to 2019.

Scicom (MSC) Berhad

June 2020 Dividends – RM112
June 2019 Dividends – RM112
Total 2020 Dividends –  RM280
Dividend Yield – 1.25%

May

Freedom Fund as at May 2020
Dividend Income (May) –  RM5,155.98
Dividend Income (2020) –  RM9,406.81
Dividend Yield – 2.24%

As investing sentiment improves together with the gradual lifting of Malaysia’s MCO, my portfolio has seen some improvements as well.

I received a total of RM5,155.98 in dividend income for the month of May, a huge increase compared to last year. In fact, The Freedom Fund is at 2.24% in dividend yield right now. Companies that contributed were Maybank, TNB, Nestle and IGB REIT.

Malayan Banking Berhad

May 2020 Dividends – RM2,830.23
May 2019 Dividends – RM1,052.16
Total 2020 Dividends –  RM2,830.23
Dividend Yield – 4.77%

The increase in dividends was due to my additional purchase of Maybank shares. However, the amount and yield has definitely increased, the total yield for the whole of 2019 was 4.49%. We’ve already surpassed it with the first dividend of 2020.

Tenaga Nasional Berhad

May 2020 Dividends – RM1,400.00
May 2019 Dividends – RM230.00
Total 2020 Dividends –  RM1,400.00
Dividend Yield – 5.38%

TNB paid out more this time around as this round’s dividend includes a special dividend.

Nestle (M) Berhad

May 2020 Dividends – RM280.00
May 2019 Dividends – RM280.00
Total 2020 Dividends –  RM280.00
Dividend Yield – 2.09%

IGB REIT

May 2020 Dividends – RM645.75
May 2019 Dividends – RM647.04
Total 2020 Dividends –  RM1,236.28
Dividend Yield – 2.38%

April

Freedom Fund as at April 2020
Dividend Income (Apr) –  RM1,686.39
Dividend Income (2020) –  RM4,250.83
Dividend Yield – 0.97%

The Freedom Fund has taken a hit due to recent events. Capital wise, we’ve moved into the positive range as of 30 April and no longer in the red.

If you’ve been following my Facebook and Instagram, you would’ve been able to pick up on some buys I have made during the MCO.

The most recent being DPHARMA and additional units of MAYBANK and SUNREIT.

However, if you’ve missed it, I will be updating my portfolio in June as per usual. So fret not.

Scicom (Msc) Bhd

April 2020 Dividends – RM168
April 2019 Dividends – RM168
Total 2020 Dividends –  RM168
Dividend Yield – 0.75%

Same amount in dividends received as last year. Same amount of disappointment. Awaiting some good news from Scicom.

IGB Berhad

April 2020 Dividends – RM227
April 2019 Dividends – RM227
Total 2020 Dividends –  RM227
Dividend Yield – 2.15%

The same amount will be expected from IGB’s preference share every year. No surprises here.

Public Bank Berhad

April 2020 Dividends – RM560
April 2019 Dividends – RM222
Total 2020 Dividends –  RM560
Dividend Yield – 2.23%

The huge increase is due to my recent addition of 800 units of Public Bank shares.

Genting Malaysia Berhad

April 2020 Dividends – RM342
April 2019 Dividends – N/A
Total 2020 Dividends –  RM342
Dividend Yield – 3.04%

I bought the shares after April 2019 so there’s nothing to compare to.

Sunway Berhad

April 2020 Dividends – RM389.39
April 2019 Dividends – RM309.12
Total 2020 Dividends –  RM389.39
Dividend Yield – 3.34%

A 25% jump in dividends received . =D

March

Freedom Fund as at March 2020
Dividend Income (Mar) –  RM663.91
Dividend Income (2020) –  RM2,564.44
Dividend Yield – 0.61%

I received a total of RM663.91 in dividends for the month of March from the companies – Homeritz, Axis REIT and Sunway REIT.

The dividend schedule of companies are all messed up again thanks to the Covid-19 virus.

Homeritz Corporation Bhd

March 2020 Dividends – RM244.50
March 2019 Dividends – RM366.75
Total 2020 Dividends –  RM244.50
Dividend Yield – 1.73%

Axis REIT

March 2020 Dividends – RM112.59
March 2019 Dividends – RM243.74
Total 2020 Dividends –  RM112.59
Dividend Yield – 0.65%

Sunway REIT

March 2020 Dividends – RM306.82
March 2019 Dividends – RM281.52
Total 2020 Dividends –  RM306.82
Dividend Yield – 1.55%

All Aboard the Dividend Train

On a side note, our friends at Rakuten has been working on a page that provides information on companies and their dividend payment date. It can be found hERE. I’m also told the page will be updated monthly.

Please note that there is no merit to chasing dividends blindly. Especially yields. A company can show high yields because dividend yield is calculated based on their previous declared dividend.

Make sure you’ve done your research and the yields are backed by equally strong underlying assets.

Also, if you’re signing up for a new Rakuten Account, please do give the blog your support and use my referral link – hERE.

You’ll receive RT points signing up with my link and it’ll go a long way in helping keep Dividend Magic running.

February

Freedom Fund as at February 2020
Dividend Income (Feb) –  RM590.53
Dividend Income (2020) –  RM1,900.53
Dividend Yield – 0.46%

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

IGB REIT

February 2020 Dividends – RM590.53
February 2019 Dividends – RM487.48
Total 2020 Dividends –  RM590.53
Dividend Yield – 1.45%

January

Freedom Fund as at January 2020
Dividend Income (Jan) –  RM1,310.00
Dividend Income (2020) –  RM1,310.00
Dividend Yield – 0.33%

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

Scientex Berhad

January 2020 Dividends – RM1,030
January 2020 Dividends – RM1,030
Total 2020 Dividends –  RM1,030
Dividend Yield – 2.32%

Received the same amount from Scientex last year. Expecting a >4% yield again for 2020.

CB Industrial Product Holding Berhad

January 2020 Dividends – RM280
January 2020 Dividends – RM280
Total 2020 Dividends –  RM280
Dividend Yield – 1.26%

Same amount was paid out last year.

What to Do During a Bear Market in Malaysia

By 8

What is a Bear Market?

In general, bear markets are markets in which the prices of securities fall by more than 20% amid widespread negative investor sentiment and fear. It can last from weeks to decades.

So, don’t be so quick to call a market a BEAR.

Things You Should Do During a Bear Market

Always Stay Invested

I’ve said this countless times, and it stays true time and time again. In the long term, you’re always better off staying invested.

And if you’ve been a reader of the site, I would like to assume – like me, you’re a long term investor.

”Wouldn’t it be better to sell off my stocks now and buy when the market bottoms out?”

This is the most frequent question I got during the last few weeks of turbulence. I even came up with a standard reply to copy and paste.

The above theory is sound, but I for one will never know when a market ‘bottoms’ out. And neither would you.

Instead of chasing that bottom, I’d suggest averaging down your stock positions regularly. And when a market rebounds, and trust me it will, you’ll be in prime position for the biggest upside of your life.

Remember the Fundamentals

Don’t panic. Don’t sell. Don’t panic sell.

Remember the reasons you bought into the stock and your portfolio in the first place. During a bear market, the company’s fundamentals will not have changed.

Do not just sell because the stock price is dropping. That goes against conventional wisdom.

What I am Doing

The Freedom Fund isn’t spared the current market downturn. In fact, my return right now is at a measly 0.91%. Since inception.

However, I’ve received and will continue to receive dividends every month. Which is why there’s no panic selling from my side.

Of course, there will always be regrets in hindsight where I wished I had sold stocks earlier so I’d have more money to spend now. But I’m happy where I am – receiving dividends while the market goes crazy.

So this is what I’m actually doing – I’m purchasing stocks and averaging down on my positions. And to continue doing this for the next few months or even years, I’d need cashflow. AND Dividends = Cashflow.

The money I’ve actually saved up in Fixed Deposits and in my savings account will be utilized and used to make more buys.

It is the Best Time to Start Investing

If you’re ever on the fence and wondering if you should start investing, the time is now.

You can read up on how to start investing hERE.

If you’ve yet to open a brokerage account, I’d recommend Rakuten Trade. They offer one of the best rates and you can do everything online right now.

And if you don’t want to invest on your own, I’d suggest a robo-advisor like StashAway.

End.

Now, this isn’t a call for everyone to take up arms and buy, buy, buy.

Instead, I am telling you to keep a calm mind and purchase more stocks if you are able to. Do not go over your risk threshold.

It is also a reminder to always, always stay invested.
Onwards and upwards my friends.

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

Hello 2020!

By 0

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

I’ll leave you with a little video of my how my 2019 went.

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 Update 2019

By 0

Before we get to the serious stuff, this is how my 2019 went.

December Dividend Update

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.

November Dividend Update

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.

October Dividend Update

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.

September Dividend Update

September’s total dividend tally – RM1,336.98. That’s a 25.71% reduction compared to September last year.

However, as I’m writing this now in October, I’ve gotten much more this month compared to last year. So.. not all hope is lost. Wait for my next October update.

Public Bank Berhad

September 2019 Dividends – RM198
September 2018 Dividends – RM192
Total 2019 Dividends –  RM420
Dividend Yield – 3.78%

Marginal increase, from 3.57% last year to 3.78% in 2019. An increase is still an increase.

Sunway REIT

September 2019 Dividends – RM298.38
September 2018 Dividends – RM274.18
Total 2019 Dividends (so far) –  RM902.49
Dividend Yield (so far) – 4.55%

The dividends and yield are increasing as well from Sunway REIT. One more distribution to go in December.

Homeritz Corp Berhad

September 2019 Dividends – RM489
September 2018 Dividends – RM244.50
Total 2019 Dividends –  RM855.75
Dividend Yield – 6.06%

An increase from 5.54% in 2018 to 6.06% this year.

Sunway Construction Berhad

September 2019 Dividends – RM12.60
September 2018 Dividends – RM12.60
Total 2019 Dividends –  RM25.20
Dividend Yield – 4.29%

A drop in dividend yield from 4.60% last year.

IGB Berhad

September 2019 Dividends – RM227
September 2018 Dividends – RM227
Total 2019 Dividends –  RM454
Dividend Yield – 4.30%

These are preference shares from IGB. Figures will remain constant in the years to come. I wrote about it hERE.

Scicom (MSC) Berhad

September 2019 Dividends – RM112
September 2018 Dividends – RM336
Total 2019 Dividends (so far) –  RM392
Dividend Yield (so far) – 1.76%

It’s getting from bad to worse from Scicom. I’ll be looking to offload some, if not all of my holdings and allocate it to higher-yielding companies. Depending on how the company does in the coming months.

End.

We are at a total dividend income of  RM12,273.76. Giving the Freedom Fund a yield of 3.13%. 

Freedom Fund as at September 2019
Dividend Income (Sept) –  RM1,336.98
Dividend Income (2019) –  RM12,273.76
Dividend Yield – 3.13%

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

August Dividend Update

This post is coming a little late as I was waiting to receive my dividend vouchers in the mail.

I received a total of RM12,802.23 in dividend income for August. That is in comparison to RM574.55 for the same month last year.

The huge jump as most of you know is from AirAsia’s special dividend of RM11,970. This is a one-off payment from AirAsia as they disposed of assets and I’ve made the decision to not add this to my yield.

That being said, August’s dividend income minus the one-off special dividend is RM832.21 vs RM573.55 last year. That’s a 44.85% jump.

The reason being Axis REIT paid a few days earlier this year and made the payment in August instead of September.

The current dividend yield of the Freedom Fund stands at 3.02%.
We’ve passed the 3% mark!!

Axis REIT

August 2019 Dividends – RM222.84
August 2018 Dividends – RM373.35
Total 2019 Dividends –  RM688.29
Dividend Yield (so far) – 3.96%

If you’ve been following the site, I disposed of off half of my Axis REIT shares earlier this year. So the dollar amount in dividends will be lower compared to 2018’s. Yield is about the same though.

IGB REIT

August 2019 Dividends – RM609.37
August 2018 Dividends – RM574.55
Total 2019 Dividends –  RM1,869.10
Dividend Yield (so far) – 4.60%

That’s about a 7% growth in dividends for the 3rd round of dividends. IGB REIT has been one of my best performing stock purchases for the Freedom Fund.

REITs were always intended to be a defensive stock in my portfolio but it looks like they’ve outperformed almost every other stock I have. I’ll be looking to add more REITs to my portfolio as and when the opportunity comes.

End.

We are at a total dividend income of  RM11,433.16. Giving the Freedom Fund a yield of 3.02%. 

Freedom Fund as at August 2019
Dividend Income (August) –  RM832.21
Dividend Income (2019) –  RM11,433.16
Dividend Yield – 3.02%

As always, Facebook and Instagram. Follow. Tengkiu.

July Dividend Update

August has been a busy month of late, hence the late dividend income update for July. The Freedom Fund only managed a total of RM1,409.95 from two companies – Aeon Credit and Scientex.

Compared to RM4,176.64 in July last year, that’s a –66.24% drop in dividends. Fret not, because last year, we had AirAsia’s special dividend come in July. We will have a special month of dividends sometime later this year.

The current dividend yield of the Freedom Fund stands at 2.85%.
I know some of you has surpassed the 3% mark. 😉

Aeon Credit Service (M) Berhad

July 2019 Dividends – RM379.95
July 2018 Dividends – RM340
Total 2019 Dividends –  RM379.95
Dividend Yield (so far) –1.68%

We’re poised to go over 3% in dividend yield for the first time for Aeon Credit again this year. We did 3.18% in 2018. They’ve been on a lending spree of late and should see profitability increase.

Scientex Berhad

July 2019 Dividends – RM1,030
July 2018 Dividends – RM920
Total 2019 Dividends –  RM2,060
Dividend Yield – 4.64%

Scientex’s final dividend came in at RM1,030. Total dividends for the year is RM2,060. Compared to RM1,840 last year. That’s an 11.9% increase.

Scientex’s full-year dividend yield is an amazing 4.64% for me. I’ve held shares of the company since 2014 and as the business has grown, so has my dividend yields. The company’s prices are attractive right now and I might be adding some more to my portfolio.

Busy August

August was a busy month for yours truly and it’ll get a little busier in the coming weeks. I’ll be on holiday but will have an article or two out before and after (hopefully).

Meanwhile, don’t forget to follow me and my holidays etc on Instagram. @dividendmagic. Next week will be a fun one.

I don’t post these on the blog and on Facebook. See you on Instagram 😉

End.

We are at a total dividend income of  RM10,348.31. Giving the Freedom Fund a yield of 2.85%. 

Freedom Fund as at July 2019
Dividend Income (July) –  RM1,409.95
Dividend Income (2019) –  RM10,348.31
Dividend Yield – 2.85%

June Dividend Update

We’re at the halfway mark everyone! I took a long hard look at my portfolio the Freedom Fund. It’s time to trim and spruce the fund up a little in the coming weeks. I’ll also be updating the figures next week to reflect Q2.

Moving on – Dividends. I received a total of RM1,783.04 for the 6th month of 2019 from a total of 5 companies – Axis REIT, IGB REIT, Sunway REIT, Scicom and Cypark.

Compared to June back in 2018, I received 10.48% more in dividend income. The 6 months cumulative total for 2019 also came in higher compared to 2018’s. RM8,925.76 vs RM8,003.52. Big Whoop!

The current 2019 dividend yield of my portfolio is at a nice 2.39%.

Axis REIT

June 2019 Dividends – RM221.71
June 2018 Dividends – RM362.63
Total 2019 Dividends –  RM709.19
Dividend Yield (so far) – 2.68%

IGB REIT

June 2019 Dividends – RM647.04
June 2018 Dividends – RM667.52
Total 2019 Dividends –  RM1,259.73
Dividend Yield (so far) – 3.10%

Sunway REIT

June 2019 Dividends – RM322.59
June 2018 Dividends – RM298.11
Total 2019 Dividends –  RM604.11
Dividend Yield (so far) – 3.04%

Scicom Berhad

June 2019 Dividends – RM112
June 2018 Dividends – RM224
Total 2019 Dividends –  RM280
Dividend Yield (so far) – 1.25%

Cypark Resources Berhad

June 2019 Dividends – RM479.70
June 2018 Dividends – RM459.20
Total 2019 Dividends –  RM479.20
Dividend Yield (so far) – 2.71%

A look at 2019 so far

5% Dividend Yield

The most important goal of 2019 for the Freedom Fund is to achieve a 5% yield. Looking at how it is at the halfway mark, we look to be heading in the right direction.

Markets are on the up again and I’ve been slowly building up my net cash position. I’ll be adding stocks to the portfolio soon when the markets go down.

Accumulate Dividend Aristocrats (Malaysian version)

This is a new goal and target of mine.
Let me define a Dividend Aristocrat – The Dividend Aristocrats are S&P 500 index constituents that have increased their dividend payouts for 25 consecutive years or more.

That’s the US version of a dividend aristocrat. Now you’ll be hard pressed to actually find a handful of companies on the KLSE that have been operating for more than 25 years, let alone one that have increased their dividend payouts consecutively.

Sadly, as a Malaysian, I’ll define Malaysian Dividend Aristocrats as Companies listed on the KLSE that have increased their dividend payouts for 5? consecutive years.
Or should it be 10. Lemme get some buddies together and do some research.

End.

We are at a total dividend income of  RM8,925.76 . Giving the Freedom Fund a yield of 2.39% now. 

Freedom Fund as at June 2019
Dividend Income (June) –  RM1,783.04
Dividend Income (2019) –  RM8,925.76
Dividend Yield – 2.39%

I hope everyone else’s portfolios are doing well as we close Q2.

May Dividend Update

Took a pretty long break during the Raya holidays, hence the kinda late post. I received a total of RM1,332.16 for the month of May.

Only two companies contributed to my dividend income last month – Malayan Banking Berhad and Nestle Malaysia Berhad.

Compared to the same month last year, I only collected RM667.52. That’s a 69.51% increase in dividends. Total dividends stand at RM7,142.72. Dividend is at a healthy 2.04% so far.

Malayan Banking Berhad

May 2019 Dividends – RM1,052.16
May 2018 Dividends – RM1,040.64
Total 2019 Dividends –  RM1,052.16
Total 2018 Dividends –  RM1,853.64
Dividend Yield (so far) – 3.92%

Received a total of RM1,052.16 as dividends. Some in the form of shares via Maybank’s dividend reinvestment plan. Full details of the DRIP are hERE.

Nestle Malaysia Berhad

May 2019 Dividends – RM280
May 2018 Dividends – RM270
Total 2019 Dividends –  RM280
Total 2018 Dividends –  RM550
Dividend Yield (so far) – 2.09%

End.

We’ve broken the 2% dividend yield mark. Should hit 3% in a month or two. June is gonna rock!

As of the month of May, my total dividend income so far is 4% higher compared to 2018. In simpler terms, my dividends are increasing.

We are at a total dividend income of  RM7,142.72 . Giving the Freedom Fund a yield of 2.04% now.

Freedom Fund as at May 2019
Dividend Income (May) –  RM1,332.16
Dividend Income (2019) –  RM7,142.72
Dividend Yield – 2.04 % 

April Dividend Update

I’m not sure what it is but 2019 has been a peculiar year. Dividends that were supposed to come in their respective months didn’t. Leaving my y-o-y dividend income in a deficit for January, February and March so far.

The fourth month of the year is putting things back in its place though – I raked in a total dividend income of RM2,415.12 this time around. A 400% increase when compared y-o-y.

Total dividend income up till April stands at RM5,810.56 right now. 1.55% higher than it was April last year.

Tenaga Nasional Berhad

April 2019 Dividends – RM230
April 2018 Dividends – nil (I bought TNB at a later date last year)
Total 2019 Dividends – RM230
Total 2018 Dividends – RM782.40
Dividend Yield (so far) – 1.63%

TNB is taking a beating in the stock market lately. I’m prepared to purchase additional shares any time soon now. Follow my Instagram and Facebook for live and immediate updates.

AirAsia Group Berhad

April 2019 Dividends – RM1,596
April 2018 Dividends – RM1,596
Total 2019 Dividends – RM1,596
Total 2018 Dividends – RM1,596
Dividend Yield (so far) – 3.85%

I missed the chance to grab some shares of the aviation company at RM2.40 levels. Yields have been great so far at 3.85% even at my relatively high purchase price per share.

CB Industrial Product Holding Bhd

April 2019 Dividends – RM280
April 2018 Dividends – RM420
Total 2019 Dividends – RM280
Total 2018 Dividends – RM700
Dividend Yield (so far) – 1.26%

Overall bad performance from CBIP. The stock has dipped to very, very low values in the past few months.

Sunway Berhad

April 2019 Dividends – RM309.12
April 2018 Dividends – RM254.52
Total 2019 Dividends – RM309.12
Total 2018 Dividends – RM551.46
Dividend Yield (so far) – 2.71%

I’ll be monitoring Sunway for purchase opportunities. Dividends have increased y-o-y and I like that that issued the dividends this time around via additional shares.

This adds tremendous value to shareholders and shows the management’s confidence in the company itself.

End.

A tremendous April as my dividend income has finally caught up to the previous year’s levels. We are at a total dividend income of RM5,810.56. Giving the Freedom Fund a yield of 1.66% now.

Freedom Fund as at April 2019
Dividend Income (April) – RM2,415.12
Dividend Income (2019) – RM5,810.56
Dividend Yield – 1.66%

I’ve started a fun side project compiling AGM door gifts hERE.

Been receiving many pictures from everyone and adding to the list. The next time you’re at an AGM, do take a pic of the gifts and meal if possible and send it to divvymagic@gmail.com.

Thank you in advance!

Let’s see if we can get a handle on which company gives the best gifts soon.

March Dividend Update

We did good in March. Raking in RM1,265.27 in dividend income from a total of 5 companies. Compared to RM2,166.98 March last year.

Don’t let the figures fool you though, there was a one-off gain from the takeover of Goldis Berhad last year, netting me RM1,441.68.

New faces include Homeritz (which traditionally declared dividends in February) and my preference shares from Goldis (which you can read about hERE)

Homeritz Corporation Berhad

March 2019 Dividends – RM366.75
March 2018 Dividends – RM537.90
Total 2019 Dividends – RM366.75
Total 2018 Dividends – RM782.40
Dividend Yield (so far) – 2.60%

A dip in dividends for the furniture company.

Public Bank Berhad

March 2019 Dividends – RM222
March 2018 Dividends – RM204
Total 2019 Dividends – RM222
Total 2018 Dividends – RM396
Dividend Yield (so far) – 2.00%

A 10% increase in dividends from Public Bank this year.

Sunway REIT

March 2019 Dividends – RM281.52
March 2018 Dividends – RM297.30
Total 2019 Dividends – RM281.52
Total 2018 Dividends – RM1,179.94
Dividend Yield (so far) – 1.42%

A decrease in dividends from Sunway REIT. Hmmmm.

Scicom Berhad

March 2019 Dividends – RM168
March 2018 Dividends – RM224
Total 2019 Dividends – RM168
Total 2018 Dividends – RM1,008
Dividend Yield (so far) – 0.75%

IGB Berhad (formerly Goldis Bhd)


March 2019 Dividends – RM227
March 2018 Dividends – RM227
Total 2019 Dividends – RM227
Total 2018 Dividends – RM227
Dividend Yield (so far) – 2.15%

End.

A pretty good month. The total dividend is lower due to the aforementioned one-off proceeds from IGB Berhad.

All in all, dividend income actually increased.

Freedom Fund as at March 2019
Dividend Income (March) – RM1,265.27
Dividend Income (2019) – RM3,395.44
Dividend Yield – 0.92%

We’re almost at 1% there. Hoping to reach 5% in dividend yield this year.

End of the first quarter so I’ll be updating the figures in the Freedom Fund soon.

February Dividend Update

My February wasn’t all fine and dandy. I received only RM1,099.48 in dividend income from two companies – IGB REIT and Axis REIT. As compared to RM1,732.06 in 2018.

That’s a 36.52% drop in dividends compared to the same month last year. The main reason being – Homeritz declared in February last year, but I received their dividends in March instead, in 2019.

Also, if you’ve been following me on Facebook and Instagram, I’ve actually sold half my holding in Axis REIT after receiving their dividends.

IGB REIT

February 2019 Dividends – RM612
February 2018 Dividends – RM1,007.99
Total 2019 Dividends – RM612
Total 2018 Dividends – RM2,865.43
Dividend Yield – 1.51%

A huge 39% drop in dividends from IGB REIT.

Axis REIT

February 2019 Dividends – RM487.48
February 2018 Dividends – RM186.17
Total 2019 Dividends – RM487.48
Total 2018 Dividends – RM1,359.45
Dividend Yield – 1.42%

A 162% increase in dividends for Axis REIT.
The REIT is back on track and I foresee future growth in share price. My reason for disposing of half of the stock is because the yields are still below par for my portfolio.

End.

Freedom Fund as at February 2019
Dividend Income (February) – RM1,099.48
Dividend Income (2019) – RM2,129.48
Dividend Yield – 0.58%

Dismal dividends for the first 2 months of 2019. Still optimistic for the rest of 2019 though!

Onwards and upwards. How has everyone’s portfolio performed?

January Dividend Update

Welcome back to 2019 ladies and gents.

Markets have somewhat rebounded but sadly I didn’t make any purchases during the slump.

The first month of the year brought me a total of RM1,030 in dividend income. That’s a 23% drop in dividends compared to January in 2018.

CBIP failed to declare dividends in January as they did last year. The only company that paid me this month is good old Scientex Berhad. Their dividends increased by 12% from RM920 last year. 

Scientex Berhad

This Month’s Dividends – RM1,030

Total 2019 Dividends – RM1,030

Total 2018 Dividends – RM1,840

Dividend Yield – 2.32%

A big 12% increase in dividends compared to the same time last year.

End.

Freedom Fund as at January 2019
Dividend Income (January): RM1,030
Dividend Income (2019): RM1,030
Dividend Yield: 0.28%

This has been a short one as only Scientex paid out dividends for January. As we head into February, I’d like to wish everyone a happy Chinese New Year.

I’ll be heading back to my kampung soon. So follow me on Instagram for more of my CNY celebration and shenanigans. =D

Basic Financial Plan for Malaysians

By 16

I’ve gotten so many questions from all of you seeking financial guidance that I’ve decided to once and for all come up with a simple financial plan (a guide if you will) for all to use.  

We’ll begin with the basics first, getting yourself out of debt, saving up and then investing that money for passive income.

The Goal

The final goal of this plan here is for everyone to have an investment portfolio that generates sufficient passive income to sustain your lifestyle.

What is your Networth

Use a paper or Microsoft Excel and draw up your Balance Sheet. You’ll have your assets listed on one column and your liabilities on the other.

I’ve got a simple template set up for everyone to use here. Add or remove necessary items. The download link for the Excel file is below.

Personal-Balance-SheetDownload

1. Budgeting and Saving

First and foremost, you’ll need to have capital. For that regular, periodic investing. And also, for the opportunities that appear once (or twice) in your lifetime.

Acquiring capital would mean you need a surplus in your monthly budget. Now, there are tons of budgeting templates out there on the interwebs so I’m not going to walk you through this.

I will, however, tell you that the most important aspect of budgeting is to make it into a healthy habit. Keep at it for a time and you’ll thank yourself 50 years down the road.

Savings – I want you to have at least a 20% savings rate. The higher the better, in fact, try for 50% of your take-home salary. You’ll invest more during your early years and let the magic of compounding take over sooner.

2. Your Emergency Fund

After you’re done consolidating and paying off your debts, you’ll have a nice surplus in your budget and savings every month.

The next step would be to start building up what we call your Emergency Fund. This is the fund where if and when you ever need money for an emergency, you’ll never need to take out that personal loan or worse, from loan sharks.

An example – medical bills, or if your phone got stolen etc.

How much should you have you ask? Some sites will tell you 3 months of your expenses. I say at least 6 months, go 12 months if you’re the risk-averse kind.

I typically keep my emergency funds in Fixed Deposits (‘FDs’). Now, you may need to liquidate this cash immediately, so put them up in one-month FDs.

3.1 Investing

You’ve got a kick-ass budget going on, your behind is covered by your emergency fund, now let’s talk investing.

As you all know, I invest heavily in stocks.
Here’s what I do – I continue saving and accumulating my wealth. I then wait for and seize any opportunities that present itself. I try to always have cash on hand.

Of course, you may not want to invest in stocks. And that’s perfectly fine, you should invest in assets you KNOW and you’re comfortable with. Just as long as you INVEST. Don’t leave your money lying around in FDs and what not because inflation is gonna take a bite out of it every single day.

The 7 investment options in Malaysia can be found hERE.

Investing your money is essentially making your money work for you. The first few years of your investing will determine the outcome of your financial well-being so invest with care and diligence.

3.2 Building Your Passive Income

For me and hopefully for you, the goal is to have enough passive income to not have to worry about work. I’ve calculated that to about RM3,000 per month or RM36,000 per year. This is the essence of FI/RE – Financial Independence and Retire Early.

To learn more about FI/RE – click hERE.

There are lots of people and information out there that touts and scream passive income in your face. But when I say passive, I mean the true passive. You receive regular income with little to no effort on your part.

For example, a rental property where you manage it yourself and you’re getting complaints from the tenant every other month is not passive.

Whereas if you let your agent handle every single thing regarding the said property and check-in maybe every quarter with him/her, I’d classify that as passive.

Or you know, just buy Real Estate Investment Trusts (‘REITS’).
Let huge ass property managers manage your property instead. No worries. Hakuna Matata.

4. Protection

Now I’m including protection into your financial plan because many either overlook this or overprotect and overinsure themselves.

This step should be done simultaneously with Step 3.

Let’s talk insurance. I know I’ll be getting flak from insurance agents for saying this but – You don’t need life insurance. This is my opinion.

What you should focus on right now, is medical insurance. To cover your medical expenses, should you be hospitalized or some critical illness should befall you. That’s all I have and that’s all I need. I can pass on my whole portfolio to my next of kin and dependants upon my demise.

While we’re on the topic, fuck investment-linked insurance. Get a standard, simple one. Don’t let the premiums in your 80s scare you. You’ll invest the money yourself, without paying a fee to the insurance company.

5. Review and Monitor

You finally have everything in order. The final step is a step that is continuous and on-going. It is for life. And it is for generations to come.

You’ll need to monitor your budget monthly, make sure your savings increase in tandem with your salary and income.

Your emergency fund will increase as your monthly expenditure goes up.

Your investments and assets AND passive income should always go up, up and UP.

And, your insurance should always be updated to include the latest offerings and cover all illnesses.

I myself go over my finances every month. Part of the reason I started Dividend Magic is to keep track of my investment portfolio as well as to hold myself accountable.

End.

It is my hope that this here Financial Plan would be of help to every single Malaysian. It is a very basic plan, I’ve left out some more advanced features of financial plans but the essentials are all there.

You and you yourself are responsible for your finances.

Remember – Save, Invest and FI/RE.
I’ll leave you one of my favourite quotes by William Shakespeare.

”There is a tide in the affairs of men, Which taken at the flood, leads on to fortune. Omitted, all the voyage of their life is bound in shallows and in miseries. On such a full sea are we now afloat. And we must take the current when it serves, or lose our ventures.”

Now go out there and don’t let them opportunities pass you by.

A Guide to Dividend Reinvestment Plans in Malaysia (Online)

By 17

Maybank’s Dividend Reinvestment Plan Online Application

No more going to the post office to subscribe dividend reinvestment plans (“DRP”) guys and girls. FINALLY.

Tricor has rolled out online applications and it is so convenient. Here, I’ll show everyone how it’s done. Step-by-step.

Tricor’s Online DRP Application

Step 1 – Register and Login

First, head over to Tricor and obviously, you’ll have to go through the motions and sign up for an account.

Proceed to login to your account.

Step 2 – Selecting the Corporate Exercise

As highlighted in the image above, select the corporate exercise you as a shareholder wishes to take part in.

In this case, Maybank’s Dividend Reinvestment Plan. Click ‘Next’.

Steps 3 & 4 – Terms and Conditions of the DRP

The next step brought me to the T&Cs of the dividend reinvestment plan. Read through, check the box and click ‘Next’.

Maybank is giving out shares in lieu of cash dividends. The shares will be issued at RM8 per share.

The lower the figure, the better. Because I’ll get more shares.

Step 5 – Declaration

Declare that you’re fit to participate in the corporate exercise. Check the box and click ‘Next’.

Step 6 – My Dividends

So, this is how a DRP works. First, the price for one Maybank share is hovering around the RM8.9 and RM9 region.

Without the DRP, I stand to receive RM1,052.16 in dividend income. Cash.

By electing to receive my dividends in Maybank shares instead of cash, I’ll receive 69 Maybank shares and RM493.20.

How did I get 69 shares you ask? That’s RM558.96 / RM8 per share.
RM8 being the issue price mentioned earlier.

Why DRP?

So, the why is simple. I stand to receive RM1,052.16 if I took it all out in cash.

Maybank is giving me some of it in shares, at RM8 per share.

The market price for one Maybank share is RM8.90. That’s a 11.25% premium. So if the price holds, I’ll gain 11.25% on my 69 shares.

However, you do not want to opt for a DRP if:

1. The issue price is ABOVE the share price (duh)
2. The issue price is really close to the share price.

First, no one in their right mind will opt for Maybank’s DPR if say, the market price for a share is RM7. This usually happens when a stock’s prices are in a freefall.

For number 2, we have to pay to participate in corporate exercises. In this case, see Step 7.

Step 7 – Payment

Followed the instructions and made my payment. RM13 in handling fees and stamp duty.

An extra RM3 in handling fees. Heck, I’d pay RM10 to save my time.

End.

So there you have it. I’ve been participating in Maybank’s DRP ever since I owned the bank’s shares. And it has been rewarding.

In the last DRP, the issue price was at RM7.25.

With Tricor’s new online system, it has been even easier and more convenient for me.

So, Maybank shareholders out there, give the online system a try and save your time. As we all know, time is everything.

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