KLSE Malaysia Best Dividend Stock for Feb 2020

KLSE stocks continue to encounter strong selling pressure.

With the recent announcement of another round of potential OPR cut, the banking stocks in Malaysia are seeing a selloff.

With this, the PE ratio continues to become lower and lower.


PE Ratio and Dividend Yield

PE Ratio for CIMB and RHB Bank are at 9.87 and 9.27 only.

The dividend yield for Maybank and CIMB is quite high at 6.74% and 5.25%.

This is much better than putting in a fixed deposit, assuming that the dividend distribution still remains.

These numbers are too strong to be ignored.

As all the counters are big-cap stocks, it is quite safe to accumulate slowly.

Investors can consider doing Dollar Cost Averaging (DCA).

In terms of market cap, Maybank is the biggest, followed by Public Bank and CIMB.

OPR Cut, Again? Good news or bad news?

If the OPR cut is confirmed, it might mean that the interest income will be lower for the banks.

At the same time, for those that have loans with the bank, the installment repayment will be lower as well. This is good for those that have a high mortgage.

Typically, OPR cut is done so that money will start to flow back to the people so that it will stimulate retail consumption, thus expect to stir the economy.


What do you think of this OPR cut?
Do you support this move by BNM?


Public Bank - too hard to resist?

With the dividend yield for the banking stocks become so attractive, will you consider to add some into your portfolio?

In my opinion, we can start to slowly accumulate some good quality banking stocks like Public Bank and Maybank.

For the longest time, Public Bank has quite a high PE.
With the recent drop in share price, investors can start to consider Public Bank.

Personally, I have yet to accumulate Public Bank yet.
It is still in my watchlist.

However, if the dividend yield becomes 5% or above, it may be hard for me to resist this stock.


What about Maybank and CIMB?

For Maybank and CIMB, these counters are already in my stock portfolio for quite some time and I am happily collecting the dividend regularly.

The purpose of banking stocks is to build my dividend portfolio, and I do not plan to sell it any time soon.


Share to us your thought.



Happy Investing! 😉