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Nestle Malaysia

Nestle (Malaysia) Berhad – Household Food Products in Malaysia

By Leigh
Updated December 5, 2018 Filed Under: Companies in the News, Best Dividend Stocks in Malaysia, Investment 1

Nestle's Product Portfolio

Here’s a company whose products you’d definitely find around your household as a Malaysian. Boasting a huge range of food products, NESTLE has its tentacles everywhere.

While NESTLE has had to deal with its fair share of criticisms (aka the Milo incident), it has bounced back from it with a range of new products. And new profits.

Nestle Malaysia 2017 Annual Report

This here analysis is based on NESTLE’s 2017 annual report which can be downloaded here: nestle_annual_report_2017

Being awarded the ‘Highest Return on Equity Over the Past Three Years’ is no small feat.

NESTLE AGM

Also, NESTLE had quite a turnout at this year’s AGM with a very supportive base of shareholders.

I’ve got videos of the fun-filled fare up on my instagram.

View this post on Instagram

A post shared by Dividend Magic (@dividendmagic)

Understanding the Business and its Products

Nestle's Product Portfolio
Nestle’s Product Portfolio

You would’ve been living under a rock if you fail to recognise just one of these household names. The products shown here has crept into the lives of Malaysians since we were children.

Let me paint you a picture.

You’ve had Nestle Milk when you were young. You remember the Milo trucks parked at your school compound serving free cups of chocolate goodness. You somehow recall that annoying Mat Kool song cruising round your neighbourhood.

And as you got older, you went to college where you had to tighten your belt and save some money so you filled your stomach with Maggi for breakfast, lunch and dinner. You stayed up late at night studying, buzzed on Nescafe.

What’s next you say?

You get a new job at some high-flying company, what’s that coffee machine you find in your pantry? Nestle again. Your boss pays Nestle every month to keep the machines churning. You enjoyed late night outs with your friends and colleagues at the mamak. Guess what your resident Ah-ne uses in his food and drink? Nestle.

Hell, you even remember them ‘Take a Break, Take a Kit Kat’ ads! Your parents and grandparents are probably taking Nestum in the morning and Omega at night for their bones and stuff.

My point being, Nestle’s products are here to stay for the foreseeable future. And you my friend, have been lining the pockets of NESTLE shareholders since you were 5.

 

Facts and Figures

Nestle Malaysia Growth
Source: Yahoo Finance

Investor’s realized the value of NESTLE in 2018, in a huge way. The company’s stock price has almost doubled since 2017, despite their latest Milo Incident.

I do not foresee any big jumps in the share price in the near future. Neither do I see too big of a dip for the company. At the current price of RM147.90, NESTLE’s dividend yield is below 2% the mark. My dividend yield for the stock, because I bought it at an average price of RM66.88 is at 4.04%.

NESTLE has had a continuous increase in net profit since 2014. As a rule of thumb, companies offering food products like Nestle are able to keep up with inflation.

 

Dividend Growth Perspective

NESTLE has been paying dividends consistently. I’ve held the shares since 2014.

Dividend yield was at 4.56% (2015), 4.04% (2016) and 4.04% (2017). However, with the sudden surge in share price and company growth, we should see dividends increase over the coming years.

Investors shouldn’t expect this metric to go sky-high since growth in the industry is somewhat limited.

Valuation

With the recent price increase, NESTLE is trading at 53.71 P/E.

They’re currently overvalued in my opinion. With everything factored in, I would definitely wait on this stock. Dividend history isn’t there to back up a strong buy signal.

An added note, I’m sure I’ll get many comments and messages saying Nestle is ‘expensive’. Technically it is because to buy the minimum number of 100 shares, you’d have to pay RM147.90 * 100, which comes up to RM14,790 at the current price.

However, if you’re serious about investing, get serious about saving your money. NESTLE is a worthwhile investment and it has been an invaluable defensive stock in my portfolio.

 

End.

NESTLE

Bought Price – RM66.88

Current Price – RM147.90

Capital Gain – 121.14%

Total 2018 Dividends – RM410 (so far)

Dividend Yield – 3.07%

Disclosure: I hold 200 units of NESTLE shares in my Freedom Fund portfolio. At its current trading price of RM147.90, I’m up 121% on the stock.

I will continue to hold onto my Nestle stocks for now, without adding any to the portfolio.

As always, my opinions and strategies are never intended to be a buy/sell recommendation. The strategy used has worked for me and it is for you to decide if it can be implemented into your own financial plan. Always do your own research and due diligence before investing.

A list of good dividend stocks in Malaysia can be found hERE.

 

 

 

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Nestle Malaysia AGM – Door gift / Goody Bag (April 2018)

By Leigh
Updated May 14, 2019 Filed Under: Annual General Meetings (AGM), Doorgift / Goody Bag 2

Nestle Malaysia Berhad AGM 2018 AGM Goody Bag

Nestle Bhd 2018 AGM

Nestle Malaysia’s Annual General Meetings have been consistently held in April since I’ve started investing in the company. This year it was held on a Thursday (again), 26 April 2018.

The previous year, I kept everyone up to date with the proceedings via Facebook posts. This year, I tried Instagram. For more AGM videos and pictures in the future, follow me @dividendmagic.

 

The Annual General Meeting (AGM)

Nestle Malaysia Berhad 2018 AGM Goody Bag
The Deets

From Neslte’s notice (pic above), the AGM itself was due to commence at 10am. However, the goody bags themselves, as well as breakfast, will be available from 8am.

Unlike last year, I was adamant on arriving early this time lest they run out of goody bags again. I set my alarm for 7.30am and took the LRT to KL Sentral.

 

Arrival, Registration and Collection of the Goody Bag

Nestle Malaysia Berhad 2018 AGM Goody Bag
Time of Arrival – 8.49 am
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Nestle Shareholders
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Registration
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Mountains of Goodies

The AGM was held at the same place – Hilton KL and in the same ballroom. Registration took all but 5 minutes and I went ahead to the goody bag collection area right after.

I was afraid they’d run out again like last year, but as you can see, they came prepared this time around.

 

Refreshments and Breakfast

Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Milo – The booth was unusually quiet this year
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Mango Nestum – Yuck!
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Nescafe Booth
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Red Rice?

Lugging around my heavy box of goody bag (I should have redeemed it after eating on hindsight), I went around visiting Nestle’s array of booths.

Milo was surprisingly unpopular, I think due to the recent controversy regarding its sugar content. I had about 5 cups throughout the day though. =)

I had some weird Mango Peach flavoured Nestum. And they were even selling Red Rice there.

Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
The Hospitality Room
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Hilton’s Packed Breakfast
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Breakfast!

It was my first time having breakfast at Nestle’s AGM as I was late last year. They only serve the breakfast packs for shareholders who arrive by 9.30 am.

A Hospitality Room was prepared for us to have breakfast there.

 

The Goodies – What was in Nestle’s 2018 Goody Bag

Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
A recycled bag instead of their usual box
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Nestle Goodies
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
New Kit Kat – Matcha RED BEANs
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Milo KOSONG – aka no sugar

The goodies received this year was less compared to last year’s. I see it as less cost for the company but some shareholders were unhappy about it.

To my dismay, they also gave the horrible Mango Peach flavored Nestum.

The green tea – red bean Kit Kat was nice. And I guess Nestle succumbed to pressure from the public and ramped up production for Milo kosong.

 

Before Nestle Berhad’s 2018 AGM

Nestle’s 2018 AGM was to be held at 10 am and I had about 30 minutes to kill after breakfast. Walked around some more and eventually waited beside the Milo booth.

Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
Fellow Shareholders with their Goody Bags
Nestle Malaysia Berhad AGM 2018 AGM Goody Bag
The Crowd

 

End.

This will be all for now. I’ll be splitting this post up into 2 parts. I wanted to get this out as soon as possible for everyone who has been wondering about the content of Nestle’s goody bag this year.

Part 2 will consist of the content from Nestle’s actual AGM. Spoiler alert: We had good market share increase and profits.

For more AGMs, head over hERE for a long list of Malaysian companies and their door gifts.

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Dividend Income Update 2016

By Leigh
Updated December 27, 2020 Filed Under: Dividends 7

Dividend Magic Dividend Income Update

A list of my past dividend income and updates can be found below:

  • Dividend Income Update 2015
  • Dividend Income Update 2014
  • Where it all started – April 2014

December

2016 Dividend Income

First off, the Freedom Fund has been updated as of 31 December 2016. The full list of dividend yields from my share holdings can be viewed there.

Last month, I hit RM10K in dividend income for the year. For the last month of the year, I added another RM1,037.75, bringing the grand total for the year to RM11,429.55. The total has been adjusted slightly due to a slight miscalculation on my part. Would have liked the total to hit RM12K but it fell short. Having RM12K in dividends would’ve meant I was receiving RM1K exactly in passive income every month.

We shall start off with the dividends received in December and then move on to the year 2016 as a whole in my next post. So bear with me.

Nestle Malaysia

December Dividends – RM140.00

Total 2016 Dividends – RM540.00

Dividend Yield – 4.04%

Weight – 4.47% of the Freedom Fund

Scicom Bhd

December Dividends – RM168.00

Total 2016 Dividends – RM168.00

Dividend Yield – 0.96%

Weight – 5.16% of the Freedom Fund

I’ve been looking at Scicom for about a year and I purchased the company’s shares back in October 2016 at RM2.08 per share.  Their dividend yield of 0.96% doesn’t reflect the full year’s as I bought the shares only in October.

Bonia Corp

December Dividends – RM421.25

Total 2016 Dividends – RM421.25

Dividend Yield – 1.56%

Weight – 5.55% of the Freedom Fund

TAANN Holdings

December Dividends – RM130.00

Total 2016 Dividends – RM130.00

Dividend Yield – 1.40%

Weight – 2.88% of the Freedom Fund

As with Scicom, the dividend yield for Ta Ann only takes into account the dividends received this month.

End.

Total dividends received for the year 2016 is RM11,429.55. That’s the final number, the dividend yield – 3.84%.

Some may consider this low but don’t forget I have yet to factor in my capital gains. So come back in a few days for a grand summary of the year 2016.

Thanks for reading! 

November

sticker-anonymous-visage

Remember remember, the 5th of November! The 11th month of the year is usually a quiet occasion for me as a dividend income investor. However, there is cause for celebration this November because it is official – I’ve finally hit RM10K in dividend income for 2016.

RM10,531.80 to be exact.

I received a total of RM547.48 from both Axis REIT and Sunway REIT the past month.

Axis REIT

November Dividends – RM263.65

Total 2016 Dividends – RM1,049.06

Dividend Yield – 4.31%

Weight – 6.78% of the Freedom Fund

Axis REIT netted me RM263.65 in November, bringing the grand total for the year to RM1,049.06.

The dividend yield for Axis REIT for 2016 was a pretty disappointing 4.31% for me. Axis hasn’t been doing too well especially last year as they had to refurbish some of their old properties. Hopefully, the long term benefits start rolling in now.

Sunway REIT

November Dividends – RM283.83

Total 2016 Dividends – RM1,172.02

Dividend Yield – 5.91%

Weight – 6.72% of the Freedom Fund

The next contributor to my November dividends is Sunway REIT, bringing in RM 283.83. The total annual dividends came up to RM1,172.02. SunREIT’s dividend yield is at a much more commendable rate compared to Axis’ at 5.91% for me this year.

The REIT has been acquiring strategic properties the past years and will definitely continue to perform.

My average purchase price of SunREIT is at RM1.46 with my purchases over the years. I’ve been looking at ‘investors’ discussing the share price recently as it increased about how they are making 1-2% gains buying and selling (speculating). What they don’t mention is the time’s they’ve lost with this method. It really cheeses me off when people brag about the good times they’re having but when the share price falls, you don’t hear a thing from them. I’m here to show that long term value investing will pay off in the long run, at RM1.72 now, I’m up by 18%!

End.

Total dividends for the year currently stands at 3.45%. I consider this a little on the low side as our risk free rate is around 4% this year. We shall see what the last month of 2016 brings in and strategize accordingly.

RM10,531.80 everyone! I’m going to relax and let that sink in over the weekend.

Sekian terima kasih. Thanks for reading!

October

Happy Halloween! It might have been fright night with costumes for some of you. Or perhaps like me, you spent your Halloween at a small party at a close friend’s house. Whichever it is, with dividend income investing, your dividends trickle in no matter what. It really feels good to be able to sum up your dividends at the end of the month and watch your hardworking money work for you.

Without further ado, my October dividend update: RM800

The companies that contributed to this RM800 are only two: Malayan Banking Berhad (better known as Maybank) and Sunway Berhad.

Malayan Banking Berhad – Dividend Income

As mentioned in my earlier post, I opted to forego my dividends from Maybank and instead traded it for shares. This is known as a dividend reinvestment plan. Through the DRP, I received 68 units of Maybank shares and the remaining RM127. However for yield calculation, we will just say I received RM620 in dividends.

Since my last post on Maybank, I’ve added quite a bit to more to my portfolio. My average purchase price is now RM8.12, market price is at RM7.81.

Yes I am currently making a loss with Maybank. However, I still believe in the bank and will continue to purchase more shares should it drop further. The total dividends received from Maybank currently stands at RM1,070 giving me a yield of 4.16%. Here’s to a better 4Q and 2017 moving forward.

Sunway Berhad – Dividend Income

From the conglomerate that is Sunway Berhad, I received RM180 for October 2016. The dividends received in 2016 and 2015 stayed the same (not taking into account the one-time special dividend received last year). This is actually good news because Sunway Berhad actually listed their construction arm last year and this would’ve led to some loss in revenue.

Total dividends received for the year is RM396 translating to a 3.52% yield.

End.

I have no plans to dispose of any shares in both Maybank and Sunway. If the opportunity presents itself, I might even find myself adding shares to my portfolio.

As of now, the total dividends received in the year 2016 stands at RM9,844.32. My dividend yield comes in at 3.22%. I am 99% certain that I’ll be able to achieve RM10,000 in dividends this year. Maybe even RM12K, which would give me an average of RM1,000 a month.

As always, thank you for reading and for all your support. Onwards and upwards!

September

First and foremost, I’m delighted to report that I’ve officially achieved my 2016 goal of RM8,500 in dividend income. I’ve raked in a total of RM9,044.32 this year from dividend income alone. In fact, it is entirely possible that I may be able to shatter the RM10,000 mark this year. I’ll keep my fingers crossed.

The total dividend income received for the month of September crossed the one thousand ringgit mark at RM1,172.15. The five companies that generously contributed to this amount are: Axis REIT, Sunway REIT, Homeriz, Sunway Construction and Nestle. Their individual amount and yields for the year so far are as below:

Axis REIT – RM263.65 (3.23% yield)

SunREIT – RM270.50 (4.48% yield)

Homeriz – RM489.00 (7.79% yield)

SunCon – RM9.00 (4.61% yield)

Nestle – RM140.00 (2.99% yield)

Unfortunately I’m unable to get to my mail the past few weeks so the relevant pics will be updated in due time. I know some of you can’t wait to see more of my Iron Man collection but please bear with me (Yes there are several more models to be revealed!).

Moving onto the total yield of my Freedom Fund – Total dividend yield for the year stands at 3.14%! Yes we’ve yet again crossed an important milestone – the 3% fixed deposit mark. I know some of you may argue that FDs under promotion offers way higher interest rates, but lets agree to stick to 3% shall we?

How is the Freedom Fund doing so far?

With it being the third quarter and all, I guess I should let everyone know that the Freedom Fund is doing good. For the year so far, unrealized capital gains of the portfolio stand at 9.75%. This preliminary figure is pretty good considering the volatile year we’ve had so far. With the end of 2016 so close, I will hope for a good 4th and final quarter to conclude the year. There will be a more comprehensive summary come December.

Thanks for reading.

P.S. A good number of you have reached out to me on financial planning since my last post. I would like to offer my apologies to some of you whom I’m unable to meet yet due to my schedule. Hope to meet up with you guys soon over the next few weeks!

August & July

First of all, my apologies again for missing the dividend income update for the month of July. Now, on to more important matters.

I received a total of RM1,938.99 in dividend income for both July and August, as detailed below:

July

CBIP – RM420.00 (5.74% yield)

August

Scientex – RM456.00 (8.53% yield)

PBBank – RM156.00 (1.41% yield)

IGB REIT – RM906.99 (5.58% yield)

*Note that at the time of purchase, PBBank shares had already paid out their first trench of dividends.

Final Dividends

This will be the final dividend paid by all the companies mentioned above for 2016. I’m pretty satisfied with the yields from all 4 companies. Hope to see them continue to grow in the coming years and see my yields increase as the share price go up.

Also, I’m currently waiting on more opportunities to add Scientex and more REITs to my Freedom Fund.

Some Short Term Gain

In August, I’ve also been busy making some quick profit from the market. As most of you know, I’m mostly a long term investor and have generally stuck to my principles. However, I’ve been known to dabble in short term investing ie. trading when I’ve done my due diligence and research. I’ve made a RM900 or 13% gain in a short span of 6 days by trading in DESTINI.

I will not encourage average investors to pursue this highly risky branch of investing without first knowing everything about it and then some. So, with this trade, I’ve added an additional RM900 to my war chest which I hope to make use of in the near future.

Conclusion

Total dividends received currently stands at RM7,872.17 with a yield of 2.74%.

As an early comparison between 2016 and 2015’s dividend yields, I’ve already surpassed last year’s dividend yield of 2.7%. Looking forward to a bountiful final 4 months of 2016.

Finally, I hope everyone’s investments have been doing well and continue to. Thanks for reading, Cheers!

PS: I’ve been away from home for a bit and therefore haven’t had the chance to snap the dividend voucher from IGB REIT. Will be adding them when I get back.

June – Half Year Report

June, marking the first half of the year 2016 has come and gone. The year 2016 has seen its ups and downs but overall, it has been good to me. With that, I present to you the dividend update of my Freedom Fund so far. I will be trying my best to update the page every quarter so bookmark that and drop by from time to time to follow my progress.

No.StockQuantityGross Investment (RM)Dividends (RM)Div. Yield
1AXREIT1423624,313.661,049.064.31%
2BONIA3370026,990.33421.251.56%
3CBIP1400022,304.801,280.005.74%
4CYPARK820017,681.66410.002.32%
5ECOWLD900012,960.00--
6HOMERIZ2445014,127.211,100.757.79%
7IGB REIT2280029,986.561,673.075.58%
8MAYBANK316825,723.211,070.004.16%
9NESTLE20013,376.00540.004.04%
10PBBANK60011,100.00156.001.41%
11SCICOM840017,472.00168.000.96%
12SCIENTX380022,267.24950.004.27%
13SUNCON360586.8023.404.06%
14SUNREIT1360019,839.681,172.025.91%
15SUNWAY360011,264.04396.003.52%
16TAANN26009,282.00130.001.40%
17TUNEPRO1080018,503.64540.002.92%
18SOLD STOCKS (Air Asia & AFG)350.50
297,778.8311,429.553.84%

If you would recall, I set myself a goal of RM8,500 in dividends this year. So far, at the half year mark, I’ve received a total of RM5,933.18 in dividends, this represents close to 70% of my target. Now that doesn’t necessarily means I’m certain to achieve my target this year because different companies pay dividends at different times of the year. However, based on historical data, I should be able to surpass my goal and then some.

I invested a total of RM274,340.82, my portfolio is now worth a little over RM321K. Dividends received as at June 2016 stands at RM5,933.18, giving me a yield of 2.16% so far.

Thank you 2016!

I leave you with this: Investing is a long term game and I hope I’ve shown most people out there that it can be a very rewarding venture. Most may say the 16-17% gains I’ve made over the course of 3 years isn’t much, which I will agree, but these gains are not inclusive of the dividends I’ve received over the years as well.

Thanks for reading!

PS: I’ve decided that I will have a consolidated 5-year statement posted here when the time comes which will include all dividends received. So wait for it!

Dividend Update
Vintage image of Rosie the Riveter by J. Howard Miller. Courtesy National Museum of American History, Smithsonian Institution

June & May

If April was a slow month for dividends,  May is infinitely slower as I did not receive a single dividend. Hence my failure to procure a post for the month – more on that later.

June however, proved to be one of the most bountiful months so far with a total dividend of RM1,852.37.

Sunway REIT

The first company to hand out its dividends in June was Sunway REIT with RM297. This effectively brings SunREIT’s total dividend for the year to RM617.69, its yield currently stands at 3.11%.

I recently paid a visit to the newly refurbished Sunway Putra Mall in Kuala Lumpur and was happy with the new vibrant and colorful look. The mall is surrounded and jam packed with high rise apartment towers all around it, giving it a sort of permanent consumer base already. I look forward to the REIT performing superbly in the future, with shrewd and shareholder oriented decisions by the management.

Nestle Berhad

Nestle Malaysia paid out RM260 in dividends this time around, its first for the year 2016, bringing its yield to 1.94% for the year. The recent rise in consumer product stocks has seen Nestle become a really strong performer in my portfolio.

I’ve held this stock for 2 years now and it has been rising steadily even managing to maneuver itself past certain crippling events such as the implementation of GST. The goody bags given out by the company every year to shareholders is something I look forward to every year. Nestle will be the blue chip dividend producing defense I will continue to rely on in the coming years.

*Note: The dividend vouchers from both SunREIT and Nestle did not arrive by mail unfortunately and I fear it may be lost in transition.

Maybank

Maybank paid me RM450 in dividends, bringing the yield to 3.61%. I missed out on the company’s earlier dividends this year which would’ve brought my yield for the year to 5-6% easily.

Dear readers, this is a great example of why one should be investing in shares of solid companies. I know most of you are placing your funds into fixed deposits which gives you a yield of what? 3%? 3.5%? Maybe topping out at 4.5% for those promo rates (which you don’t get every year and comes with tonnes of T&C). Instead, if you had invested in  company like Maybank when its shares dropped to a low, you’d get a cool 5-6% per annum.

Alright alright, I can already hear some of you muttering ‘but not all of us know when the shares are at a low’. Fine, let’s say you invest when the share prices are high, the yield would still be in the 3% region. And guess what? You get the potential that the stock will increase in price, giving you more gains.

I bought into Maybank earlier this year when the stock declined to RM8.3, it seemed a good decision for the next few months as I saw the stock climb past RM9. The company’s stock then fell to a low of RM8.1 of which I was really tempted to add more to portfolio, I am currently waiting for a bit before deciding. The current dividend yield (if maintained by the management) is very attractive.

Cypark Resources Berhad

Cypark handed me RM410 in dividends so far this year, giving me a yield of 2.32%. The company’s core business is a unique one and I liked its venture into the solar business last year. Will continue to hold onto this stock for the foreseeable future.

Axis REIT

I received RM263.37 from Axis REIT for June bringing the total dividends received this year from Axis to RM521.76 with a current yield of 2.15%. Nothing new with the company so far except its ongoing refurbishment of assets.

AirAsia Berhad

Air Asia, one of the most traded stock in Bursa for the past month has been making headlines for all the right reasons in June. I bought the stock at RM1.67 and its recent surge has made me a lot of money. The dividend paid out was a surprise as Air Asia was a company that retained most of its earnings for growth. The 2.41% yield came as a pleasant surprise for me.

Tune Protect

I received RM540 from Tune Protect this year, giving it a yield of 2.92%. The share has not been doing well an has been on a steady drop, not one of my best buys but I’m still holding on to the stock because of the huge potential it has in the travel insurance industry.

Conclusion

Total dividends for the year stands at RM5,933.18 giving me a 2.16% dividend yield so far. We are now halfway through the year and in my Review of 2015, I set myself a goal of RM8,500 in dividends this year. I hope to surpass that goal in the coming months.

I would like to apologize for the absence recently, as I’ve been busy with a new business venture which I will be posting about soon if all goes well. Thanks for reading!!

On an unrelated note, you may notice the new Celcom sim in my pictures. To answer your question – Yes I’ve made the jump to Celcom because of their awesome phone plans. I’ve also looked hard at Axiata as a company and maybe purchasing the stock soon.

April

April has been a slow month for dividend income compared to the first quarter of the year. I only received a total dividend of RM230.40 from two companies: Sunway Berhad (RM216) and Sunway Construction Group Berhad (RM14.40). The vouchers have yet to arrive by mail, will be updating this post with pictures when I receive them soon.

The same time last year, Sunway Berhad paid out the same amount of dividends, this is somewhat of a disappointment but not totally unexpected as their earnings have not increased significantly. They’ve also listed their construction arm recently, further diluting earnings from the holding company. So I guess I should count my blessings that there hasn’t been a reduction in dividends. With my gross investment of RM11,264.04 in Sunway Berhad, RM216 in dividends translates to a 1.92% return so far.  There will be another round of dividends in October to be declared in October later this year which should bump the return past 3% per annum.

As for Sunway Construction Group Berhad (“SunCon”), if you’ve been following my posts you’d know that I received a special dividend from Sunway Berhad together with 360 shares of SunCon back in July 2015. The company just got its order book replenished with various jobs in the country recently and should be doing very well in the future. I will be considering topping up soon if an opportunity arises.

Total dividends for the year stands at RM3,540.81 giving me a 1.29% dividend yield so far. We are only in April and in my Review of 2015, I set myself a goal of RM8,500 in dividends this year. I seem to be on track and maybe I’ll even surpass it. On that note, thanks for reading!

A side note: RM15,300 was added to my warchest on 13 April 2016. This figure will be reflected in the Freedom Fund when I update it in June.

March

The month of March this year is a bountiful one with a total of RM880.69 in dividend income from two companies – Sunway REIT and CBIP Holding Berhad. The end of March also marks the beginning of the second quarter for 2016, and as I’ve promised to update my portfolio – The Freedom Fund every quarter, I have duly done so. However, dividend growth updates will only come next year as 2016 will be the year where I organize the dividends received into months and its subsequent quarters.

Now, on to them dividends.

Compared to the dividends received in February 2016 which totaled RM1,635.72, March’s bounty doesn’t really come close at RM880.69. Moreover, the dividends received from CBIP Berhad is a special dividend and I cannot expect it to continue every year.

Sunway REIT

Sunway REIT Dividend Income

RM320.69 was paid out in dividends by one of my favorite REITs (the other being IGB REIT) compared to RM145.60 in March 2015. This is more than a two-fold increase in dividends for me this year and I hope to see the next 3 dividends this year double as well.

As I recall from memory, SunREIT has been performing well, with positive contributions from the new Sunway Putra Mall in KL. Their office tower, The Pinnacle however has seen a low vacancy rate which I hope the management is able to overcome this year. Otherwise, I declare myself satisfied with the REIT’s performance, it has given me a yield of 1.62% for 2016.

CBIP Holding Berhad

CBIP Bhd Dividend Income - March 2016

CBIP has been generous this year – RM300 in dividends was paid out to me back in January 2016. And this month, a special dividend of RM560 was declared and paid out, bringing the dividend yield from my investment in CBIP to a sweet 3.86%. The Company’s final dividend will be paid out later in July and I expect it to be higher than the RM300 received last year.

Positives from CBIP include its ever growing and strong order book and the recent regaining of its pioneer tax status which should contribute positively to its future earnings.

Dividend Yield

The total yield of my investment portfolio currently stands at 1.27% for the year 2016.

Do you have an investment portfolio of your own? If so, what is its current yield and what is your targeted yield for 2016?

Thanks for reading.

February

Another month has passed by and it’s time for me to post an article on my favorite subject: Dividend Income. The reason why I love to publish articles updating my dividend income is because it’s pure numbers. It’s hard to argue the success of long-term dividend growth investing when you can slowly and surely see dividend income rise over time, getting closer to covering one’s expenses. So, without further ado – dividends received in February 2016.

For February, I received a grand total of RM1,635.72 in dividends from three different companies – Homeritz Corporation Berhad, IGB REIT, and Axis REIT. The dividend voucher from IGB REIT has yet to arrive by mail, unfortunately. (EDIT: IGB REIT’s voucher has just arrived together with their 2015 Annual Report. Read about IGB REIT’s 2015 financial performance HERE.)

Axis REIT Dividend Income

Homeritz Corporation Berhad

Homeritz has been in my portfolio since the early days. As of this month, the stock has been up by almost 80% and the RM611.25 I received is already translating to a yield of 4.3%. What’s more, this is only the company’s first of two dividends for the year and I still have August’s dividends to look forward to, which should bring the total yield to more than 8% for 2016 (I hope).

The stock currently makes up 9.01% of my total portfolio. With the further weakening of the Malaysian Ringgit in the future, I might be picking up more of this stock, provided the fundamentals are right and in place. For now, I’m happy to just hold onto Homeritz and reap the sweet rewards.

Axis and IGB REIT

Both Axis and IGB REIT make up around 20% of my total investment portfolio, which is a good indicator of how important dividends are in my style of investing. The dividends received are RM258.39 and RM611.25 respectively from Axis and IGB REIT.

Axis REIT focuses mainly on large parcels of industrial and commercial properties which they lease out as opposed to IGB REIT, as most of you will know, manages Mid Valley Megamall and The Gardens Mall which makes it a retail REIT. Axis REIT has been in my portfolio since May 2014 and IGB REIT since March 2015.

Going with my current strategy of chasing those dividends, I will be adding more of both stocks to my portfolio when the price is right.

Dividend Yield

Total yield of my investment portfolio currently stands at 0.97% for the year 2016.

Do you have an investment portfolio of your own? If so, what is its current yield and what is your targeted yield for 2016?

Thanks for reading.

January

The dividend income I received for the first month of 2016 came from two companies: Scientex Berhad and CBIP Berhad. I received a total of RM794 (RM494 and RM300 respectively). The total weight of both companies represent almost 22% of my entire portfolio.

(Note: CBIP’s dividend voucher has yet to arrive by mail.)

The dividends received translates to a yield of 2.22% from Scientex and 1.35% from CBIP based on the initial investment. This is only the first batch of dividends and both companies will pay dividends again in later in July. I expect both companies to do really well in the future as I see only an increase in demand of their products in the years (hopefully decades) to come.

Total yield of my investment portfolio currently stands at 0.32% for the year 2016.

A summary of my investments for the year 2015 can be found HERE for a rough comparison.

Do you have an investment portfolio of your own? If so, what is its current yield and what is your targeted yield for 2016?

Thanks for reading.

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Nestle Malaysia Berhad – Goody Bag (May 2016)

By Leigh
Updated May 2, 2016 Filed Under: Annual General Meetings (AGM), Doorgift / Goody Bag 0

Nestle Goodie Bag

Nestle Malaysia Goody Bag

It’s that time of the year again and I collected the ever popular Nestle Malaysia Goody Bag at Amcorp Mall today (2 May 2016). To all other Nestle shareholders out there, if you’ve yet to do so, you have until 5 May 2016 to collect it. They are there from 11 am – 9 pm.

I did not want to pay the parking fees for a brief 15 min collection so I had a friend drop me off at the entrance. On my way to the counter, I saw 2 aunties and an old uncle carrying the signature Nestle box except this time around, it was a greenish blue color. There was virtually no line at all at the counter, I handed over my IC, signed on the attendance sheet and collected my goody bag.

Nestle Malaysia Goody Bag
The box of goodies

This year I noticed on the attendance list a shareholder who was only 24 years old. I guess gone are the days where I was the only 20s person to collect the goody bag. If you’re reading this, please let me know!

Now, them pictures:

Nestle Malaysia Goodie Bag
Everything

This year, it seems there were more packets of Maggi, I gave most of mine away last year but I think I’m going to hang on to them this time. The Royale series looks good.

Nestle Malaysia Goody Bag
Stamps!

A surprise this year as Nestle celebrates their 100 year anniversary. I thought there’d be more fanfare than a couple of stamps. No idea what to do with these, do I collect them or use it?

Nestle Malaysia Goody Bag
Maggi

A closer look at the Maggi instant noodles they gave. May Malaysians continue to enjoy their favorite instant noodles for a long long time.

Nestle Malaysia Goody Bag
Breakfast

The healthier options from Nestle, this should cover my breakfast needs for a few days.

Nestle Malaysia Goody Bag
Nescafe

Conclusion

I’ve collected goodies from Nestle Malaysia for 3 years now and the company has been a strong performer throughout. You can find last year’s goody bag HERE and do your own comparison. My dividend yield from Nestle is reaching its 5% mark and the share is up by 12% since I purchased it back in 2014.

The goodies were the usual ones, may Maggi, Nescafe and Milo continue to provide for Nestle and all Malaysians alike! I didn’t get to meet up with any other shareholders this time around again, everyone seems to be shy. Hope to have a meet up with fellow readers in the near future.

Thanks for reading!

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A Guide to Stock Investment in Malaysia

Stock Investment Guide for Malaysians

Table of Contents

  • Stock Investment in Malaysia
  • How Stock Investment Works
  • Bursa Malaysia
  • Investing Terminologies for Bursa Malaysia
    • 1. Share Lots – How Many Shares is One Lot
    • 2. Limit Up and Limit Down
    • 3. Bid and Ask Price
    • 4. Market Orders vs. Limit Orders
    • 5. Dividends & Ex-Dividend Date
    • 6. IPO (Initial Public Offering) in Malaysia
  • Opening your Stock Investment Trading Account
    • CDS Account
    • Cash or Margin Account?
    • How much should I start with?
  • Dividend Entitlement and Ex-Date
  • Picking your stocks
    • 
  • Are Capital Gains or Dividends Taxable in Malaysia?
  • Are stock investment losses tax deductible in Malaysia?
  • End.

Stock Investment in Malaysia

First off, if you’re new to the blog and website, start hERE.

I’ve come across numerous Malaysian individuals who are clueless about how to start stock investment in Malaysia. This post will serve to address all the daunting queries and quandaries faced by the Malaysian public regarding stock investment in Malaysia.

My main investment goal right now is to build a sufficient amount of passive income to cover my expenses. I plan to do long-term value investing with a focus on growth and dividends.

How Stock Investment Works

In Malaysia, stock investing means buying shares of a public-listed company on Bursa Malaysia. You begin by researching companies you want to invest in, opening a brokerage account, and eventually placing your orders. Profits come from rising stock prices and dividends, while broker fees apply. Capital gains are tax-free for individual investors in Malaysia. In a gist, that is stock investment, we’ll get more in-depth throughout the article.

Bursa Malaysia

Bursa Malaysia operates a fully integrated exchange, offering a complete range of exchange-related services including trading, clearing, settlement and depository services. Familiarize yourself with the trading hours of the local market as listed below.

Monday – Friday (except public holidays)

  • Pre-Open – 8.30 am – 9.00 am
  • Continuous Trading – 9.00 am – 12.30 pm
  • Pre-Open – 2.00 pm – 2.30 pm
  • Continuous Trading – 2.30 pm – 4.45 pm
  • Pre-Close – 4.45 pm – 4.50 pm
  • Trading at Last 4.50 pm – 5.00 pm
  • Close – 5.00 pm

Investing Terminologies for Bursa Malaysia

1. Share Lots – How Many Shares is One Lot

When investing in stocks in Malaysia, a minimum of 1 lot is required, and 1 lot is equivalent to 100 shares. So, for example, let’s say you decide to purchase 1 lot of Nestle Malaysia, and the share price is RM70. You will be required to fork out a cool RM7,000 for this minimum transaction. This is the reason why some would call Nestle an ‘expensive stock’. However this, to me is a misleading comment as the only thing that is ‘expensive’ about Nestle in this situation is its minimum investment.

Edit: As of September 2019, Nestle Bhd’s share price has more than doubled to RM145 per share.

2. Limit Up and Limit Down

Limit ups and limit downs are price limit rules that restrict how much a particular stock on the KLCI can go up or down in a day.

For KLCI component stocks trading at RM1 per share and higher, the upper limit price is capped at 30% intraday while the lower limit is capped at -15% intraday. For example, an RM1 stock can go up to, at most RM1.30 in a single day. You can still trade it, but it’s capped at RM1.30 throughout.

For stocks whose prices are below RM1, the upper limit is capped at +30 sen and the lower limit is set at -15 sen.

An overall circuit breaker is also in place for the entire KLCI:

  • Level 1 is triggered when the FBM KLCI falls by 10% or more but less than 15% from the previous day’s closing. Trading is halted for an hour or for the rest of the day, depending on the time it’s triggered.
  • Level 2 is triggered when the FBM KLCI drops by 15% or more from the previous day’s closing, leading to a trading halt for the remainder of the day.

Circuit breakers and limits exist to curb enthusiasm and/or panic. It’s a precautionary measure put in place so that the market can take a breather and slow down. They are especially useful at preventing a free fall and so far, they’re of use and working.

3. Bid and Ask Price

The bid price is the highest price a buyer is willing to pay for a stock.

The ask price is the lowest price a seller is willing to accept.

The difference between the two is called the bid-ask spread. A smaller spread indicates a more liquid stock, while a larger spread suggests lower liquidity.

4. Market Orders vs. Limit Orders

A market order executes immediately at the current price.
A limit order lets you specify a price at which you are willing to buy or sell.

Example: If a stock is trading at RM2.00 and you place a limit buy order at RM1.90, it will only execute if the stock price drops to RM1.90 or lower.

5. Dividends & Ex-Dividend Date

Dividends are payouts from a company’s profits to its shareholders.
Ex-dividend date: You must own the stock before this date to receive the dividend.
Payment date: The date the dividend is credited to shareholders.

6. IPO (Initial Public Offering) in Malaysia

An IPO is when a private company goes public by offering shares on Bursa Malaysia.

Investors can subscribe to IPOs through their brokerage accounts or via MITI allocations (for Bumiputera investors). IPO shares are often allocated at a fixed price before they start trading publicly.

Opening your Stock Investment Trading Account

stock investment

CDS Account

Firstly, CDS stands for “Central Depository System”, and all CDS accounts are maintained by our very own Bursa Malaysia Bhd. As an individual, one will have the option to create either a Direct CDS Account or a Nominee CDS Account. To cut to the chase, I would advise opening a Direct CDS Account for the Malaysian individual as the only advantage of a Nominee CDS Account is you as a shareholder will not need to worry about the paperwork related to any corporate exercises.

The only exception I would make is for MooMoo and Rakuten Trade’s nominee account. They provide services with no extra fees. Ie. Corporate Actions. 

Your next question will naturally be: “Which broker should I patronize and open my CDS account with?” The answer to this can be found here as I’ve compiled a Comparison of Stock Brokers in Malaysia. I’ve broken down all the suitable brokers available in Malaysia with simple details on the table. Personally, I use MooMoo and Rakuten Trade. I will be using their system as an example throughout my posts.

MooMoo and Rakuten both offer the most convenient way for stock investment in Malaysia. Opening a CDS and a brokerage account can all be 100% done online.

To open my Hong Leong trading account, I had to pay a visit to their office at First Avenue in Petaling Jaya. I’d suggest giving them a call (03-7728 8222) beforehand to determine the documents they need to proceed to avoid having to make multiple unnecessary trips. What I had to bring with me during my trip was my NRIC and verified copies of my savings account.

Cash or Margin Account?

Always a cash account. Unless you’re really experienced and confident in your trading abilities, please DO NOT even consider a margin account. A margin account, also known as a collateralized account allows you to borrow money to buy shares. Your broker charges you interest or higher fees for the right to borrow that money and uses your security as collateral.

Using leverage to buy your shares is very very dangerous because of a clause and event known as a Margin Call.

A margin call is a broker’s demand on an investor to deposit additional money or securities so that the margin account is brought up to the minimum maintenance margin (based on their own particular formula).

Basically, if your portfolio value falls below a certain amount, your broker will require you to top up until you reach that threshold. If you don’t they’re going to start selling your shares, at a loss. And it is extremely easy for your portfolio to fall below that threshold because the stock market is so volatile in the short term.

In short, go for the cash upfront account.

How much should I start with?

With Hong Leong Bank as an example, they charge a flat brokerage rate of 0.1% subjected to an RM8 minimum brokerage. With these charges, since you will be charged a minimum of RM8 anyway, the minimum amount you should technically trade at would be RM8/0.1% = RM8,000. This is not including your stamp duty, clearing fees as well as GST.

The stamp duty is charged by the Malaysian government. You will have to pay RM1 for every RM1,000 rounded up to the nearest ringgit subject to a maximum value of RM200.

The clearing fee is charged by the exchange’s clearinghouse – Bursa Malaysia. The fee is 0.03% of the contract value or value of shares subject to a maximum of RM1,000.

In my experience, these fees will set you back by about 0.25% per trade. More if you trade below the minimum threshold of RM8K.

With that in mind, ideally, I would recommend you start with RM8K, but of course, I realize that not everyone starting out is comfortable spending such an amount, which is why the lowest amount one should use to execute a trade would be in my humble opinion RM3K. Worry not if you haven’t got a huge amount set aside, I started small as well, the key is savings.

Dividend Entitlement and Ex-Date

There are four important dates when it comes to receiving dividends:

  1. Announcement date: This is when the company announces the amount of dividend to be paid as well as its ex-date and other details.
  2. Ex-dividend date: To be eligible to receive the dividend, you need to hold your shares BEFORE (not on, or after) the ex-date.
  3. Entitlement date: This is when the company goes through its records to determine shareholders’ eligibility and entitlement to dividends.
  4. Payment date: Payday! The date you receive your dividends.

As long as you hold the shares past the Ex-dividend date, you will be entitled to receive dividends. Even if you sell them after the ex-date. However, don’t be misled and mistaken that this is an easy way to earn free money. Usually, stock prices drop immediately after ex-dates.

Picking your stocks

A simple method for stock investment in Malaysia and an early method I used in picking my stocks was to look at products I owned or purchased on a regular basis. For example, while strolling through the grocery aisles, you’d notice that 80% of the products on display are owned by a few major companies. One of them being Nestle. With that, I invested in Nestle early on and have held the stock since then. They provide steady dividends and Malaysians love their Milo, Kit Kat, and Maggi.

Attending a company’s AGM such as Nestle’s will usually provide you with some pretty awesome door gifts. A comprehensive list of door gifts from AGMs can be found here.  This method is as simple as they come and will only work if the stock is held for the long term and it is a steady and huge rock-like Nestle.

If you’re looking for a good place to start, you can begin with a list of top Malaysian companies.

There are tons of other valuation methods out there and I urge you to study them extensively and decide on a few that suit your risk appetite and attitude towards stock investment.

Stock Investment in Malaysia

Photo source: philstar.com

Are Capital Gains or Dividends Taxable in Malaysia?

Malaysian investors should count themselves extremely lucky as capital gains from your stocks are not taxable. Capital gain is an increase in your asset’s value ie. Stock value. It is considered to be realized when you sell your stocks. In most parts of the world, if you make a capital gain, you’ll have to pay taxes.

As for dividends, Malaysia practices a single-tier tax system whereby the company paying dividends will have already paid the tax before distributing it to shareholders. When you receive your dividend income, you do not have to pay taxes on them anymore. However, a good practice is to keep your dividend vouchers and declare your dividend income although you do not need to pay taxes on them.

Are stock investment losses tax deductible in Malaysia?

The short answer is No. For individual investors in Malaysia, stock investment losses are not tax deductible because capital gains on stocks are not taxed. However, if you trade stocks as part of a business, those losses might be considered business expenses and could be deductible. Always consult a tax professional for advice tailored to your situation.

End.

My investment philosophy has always been for the long term. And it is my belief that short-term investments will always hurt you in the end.

Please let me know if I’ve failed to address any of your concerns. I hope I’ve at least helped Malaysians feel less daunted by the prospect of investing. I update my dividend income every month and here’s an overview of my entire portfolio – The Freedom Fund.

It has been an incredible and amazing journey for me and I hope, for you as well. I will continue updating this post if and when I come across additional relevant information.

Do you currently have any stock investments in Malaysia?

For the next article of the Investing Series, check out article 002 – The Complete Guide to REITs in Malaysia.

As always, Facebook and Instagram. Follow, and keep up to date. Keep up to date and help support the blog by following and sharing this article. Thank you!

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