Everyone is under panic now.
Because of the recent escalation of Covid-19 cases in Malaysia, the stock has been reacting negatively so far.
As of the time of writing, Malaysia has recorded:
Death: 8
Total Cases: 1183
But for smart investors, we should stay calm, assess the situation and make a decision that will benefit us in the long term.
Do not ever buy or sell with your emotions.
With many stocks under pressure selling right now, we need to be careful not to follow the crowd.
What we need to do is to select the best companies (stocks) and buy in stages.
With the share prices going lower and lower, there are many stocks in bargains now.
I have compiled all the KLSE blue chips stocks and look at the dividend yield and some fundamental evaluations as well.
With the recent OPR cut, and expecting another rate cut in the coming months, the FD rate is at all-time low. Averagely is it about 3.0% for 12 months tenure now.
So investors may need to add some other investment that can possibly give higher dividend.
Below is the list of the stocks:
With so many stocks with good dividends, it is time to slowly add some to your portfolio.
Of course, always do your own research in terms of profits, management, future growth, economy of moat, PE, P/B and risk before you start to add anything.
E.g. We can see that some companies are still expensive in terms of Price/Book value.
Digi has a crazy P/B at 60.43. Too expensive for a telco company.
Maybank, Hong Leong, Axiata, Ambank look attractive.
If Public Bank hits 5%, it is a very good time to add.
Also always note that high dividend yield doesn't necessarily mean it is a good choice.
The criteria that I mentioned earlier plays an important role as well.
E.g. If the profits have been decreasing for the 4 quarters, it means that the business is not doing quite well. So the share price can continue to go lower.
This may not be as good as an overall gain.
Finally, also select stocks that have high quality in terms of fundamentals.
Dividend yield needs to be sustainable, so we always want to select companies that are profitable consistently. Refer to the financial report for more details before making any decision.
Cash is king today, so invest wisely.
Final note, please duduk rumah diam diam,
or diam selama-lamanya.
https://finance.yahoo.com/quote/%5EKLSE/components/
https://ringgitplus.com/en/blog/fixed-deposits/best-fixed-deposit-accounts-in-malaysia.html
https://www.malaysiakini.com/news/515915
https://www.outbreak.my/
16 Comments
Thanks for sharing! Great input.
ReplyDeleteYou are most welcome. Hope it benefited you :)
DeleteSime darby or petronas??? One palm cooking oil one is oil for car?????
ReplyDeleteGd advice.jus look at the market today.
ReplyDeleteThanks for you kind words.
DeleteWhat do you think about AirAsia now?
ReplyDeleteAirasia is under airlines. And airlines is a capex high industry. also it depends to much on oil prices which will always fluctuates. In the medium to short term, it will be more volatile to the news. For investment, I think there is better stock out there. For trading, need to make sure have tight cut loss in place.
Deletefor long term investment what market you most recommend to?
ReplyDeleteMay I know currently what shares you recommend to buy? Thank you.
ReplyDeleteThanks Lip really helps should have read this earlier 😀
ReplyDeletethank you for sharing. it helps me to buy dividen stock.
ReplyDeleteShould recommend investors which shares to buy
ReplyDeleteHi, regarding Sime Darby's dividend yield of 14.45%, may I know how do you come to this figure?
ReplyDeleteGood info. Do you have latest updates on the KLSE stock best dividends as at Sept 2020 ? Thank you.
ReplyDeletehow to log in for the lates
ReplyDeletehi ,
ReplyDeletemay i ask why in your postings, you put TENAGA dividend yield as 2.56% ? but in KLSE screener, it says 9.8%
sorry i'm really new to this and i tried calculating but still doesn't make sense to me. pls?
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