家,有爱则暖: Counters with decent dividend

Sunday 17 January 2010

Counters with decent dividend

In share market investment, I am a very conservative investor. Therefore, dividend yield is a very important considering factor before I invest in any counter of KLSE.

Most of the shares in my portfolio give my decent dividend yield (DY). I will also add more counters with good dividend pay out to my watch list, and will try to invest if the timing is right.


The reason I like high DY sheres is because, apart from giving me consistent dividend every year, these are also the so-call “defensive shares”, especially during the bear. Good dividend is normally able to support the share price. If the share pricie has drop to certain level, then it provides another good opportunity to accumulate more shares.

How much is considered as “decent dividend yield”? I think it should be at least double of current FD interest, and must be higher than expected inflation rate. For example, the banks are currently only giving 2% interest for FD. The estimated inflation rate is 4%. So, I think the reasonable good DY should be more than 6%.

The following are the counters in my portfolio, which I think are consistently giving decent dividend to their shareholders:

  1. Panasonic

  2. Public Bank Berrhad

  3. LPI

  4. YTL Power International Berhad

  5. Zhulian

Apart from Zhulian, the other 4 companies are big capital blue chips with good track record of declaring decent dividend. I have keep all of these shares (except Zhulian) for more than 3 years.

Zhulian is a much smaller and newer listed company compared with the others. However, it is expected to declare about 12 sen of dividend a year, it means about 7% of dividend yield if you invest in this stock today.

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