[LATEST] KLSE Best Dividend Stock (UPDATED 24 JANUARY 2021)

No Malaysian expects that Malaysia will encounter the third wave of Covid-19 since Oct 2020.

Since then, the numbers of infected people just becoming worse from day-to-day.

On Saturday, 23 Jan 2021, Malaysia hit another record high of 4,275 new cases of Covid-19.

This brings the total of positive cases in Malaysia to be 180,455.

Despite this, we need to stay strong to weather this storm.

While the world is still in dire uncertainty, investors need to stay strong to focus on the long term.

Since March 2020, the KLSE has rebounded quite strongly.

Though we still see some volatility, we can see that the moving average is already on the bullish trend.

From the price chart below, seeing that for KLSE, 50 days Moving Average > 150 days Moving Average > 200 days Moving Average.

This is a good sign.

Even though it has yet to hit the previous high in May 2018, we think that recovery is on its way.

We have put down here a list of best KLSE high dividend yield stocks for your reference.

If you are an income investor and focuses on investing in a good company that generates consistent dividend income, the stock list below would be helpful for you as a good reference.

The list below is only for the KLSE Main Market.

Name	Code	Price	DPS	PE	DY (%)	PTBV
HARNLEN	7501	0.69	10	1.4	14.49	0.42
HEKTAR	5121	0.575	7.77	-45.36	13.51	0.43
NAIM	5073	0.735	9.9	-44.99	13.47	0.28
EWEIN	7249	0.31	3.5	5.71	11.29	0.34
TENAGA	5347	9.78	100	18.39	10.22	1.04
CMMT	5180	0.62	6.25	-15.14	10.08	0.53
ZHULIAN	5131	1.78	17	17.51	9.55	1.4
ARREIT	5127	0.65	6.2	12.16	9.54	0.48
BAT	4162	13.34	118	14.48	8.85	10.5
UOADEV	5200	1.65	14	7.48	8.48	0.65
ASTRO	6399	0.89	7.5	9.08	8.43	4.63
GENM	4715	2.4	20	-8.27	8.33	0.89
AMFIRST	5120	0.405	3.35	13.26	8.27	0.33
EDGENTA	1368	1.7	14	22.54	8.24	0.97
ALSREIT	5269	0.59	4.75	13.12	8.05	0.55
MAYBANK	1155	8	64	12.35	8	1.08
YTLREIT	5109	0.85	6.72	-107.23	7.91	0.56
UOAREIT	5110	1.1	8.44	21.39	7.67	0.76
SENTRAL	5123	0.925	7.08	13.66	7.65	0.77
DELEUM	5132	0.575	4.4	27.17	7.65	0.68
TEOSENG	7252	0.795	6	11.95	7.55	0.75
KIPREIT	5280	0.825	6.18	19.28	7.49	0.81
CVIEW	5049	1.07	8	6.16	7.48	0.26
MAGNUM	3859	2.13	15.84	25.85	7.44	1.25
P&O	6009	0.855	6.25	-24.94	7.31	0.85
MALAKOF	5264	0.9	6.55	12.81	7.28	0.82
AMPROP	1007	0.415	3	-24.82	7.23	0.3
SUCCESS	7207	0.795	5.7	37.59	7.17	0.57
FAVCO	7229	2.11	15	9.43	7.11	0.66
FIMACOR	3107	1.78	12.5	31.65	7.02	0.78

Note

*** Code = Ticker Symbol

*** DPS = Distribution per share

*** PE = Share Price per Earning Ratio

*** DY = Dividend Yield (%)

*** PTBV = Price to Book Value

*** Please note that the above list is generated from KLSE Screener.

I filter only those that are giving a dividend yield of above 5% for the list above.

You can see that some of the stocks are having a negative PE ratio.

This means that those stocks are having negative Earning Per Share (EPS).

Negative earnings are not the one you should buy or invest in, as they are making losses.

You can also see that many companies are having lower Price to Book Value (PTBV) of below 1.

This could essentially mean that they are undervalued, however too low could be a red flag as well, meaning the stocks has been beaten down due to poor fundamental.

For PTBV that is too low, e.g. below 0.8, I would do deeper analysis.

E.g HEKTAR REIT, with PTBV of 0.43 only, this is because the company has been making losses for a while. You can also see that the PE ratio is also negative at -45.36! This is bad.

Below is the DPS for HEKTAR. You can also see that the DPS has been dropping.

Below is the DPS for CMMT. Which is quite expected due to Covid-19.

Below is the DPS for YTLREIT. Which is quite expected due to Covid-19.

Below is the DPS for TENAGA. Which is quite expected due to Covid-19.

Below is the DPS for Maybank. Which is quite expected due to Covid-19.

In my opinion, I will only invest in those stocks that I am familiar with.

For example:

TENAGA - 10.22% - it's been a while that I'm seeing a big cap company having this high dividend yield. A stock that needs to be under my watchlist.

MAYBANK - 8.00% - this is a known big-cap stock in Malaysia.

YTLREIT - 7.91% - need to be careful of REIT, as this may take a while to recover in term of rental yield due to Covid-19.

With the current Fixed Deposit rate of below 3%, I think it is better to invest in the stock market to diversify the risk and to get a higher return.

With a potential of another round of OPR cut, investors need to plan ahead and have a game plan to ensure that their yearly return is reasonable and can hedge against inflation.

As a rule of thumb, it is always good to buy in stages.

You may need to consider the overall fundamental analysis of the respective stock before making the decision to buy.

My steps will be as follow:

1. Calculate the intrinsic value of the stock.
2. Buy only when it is undervalued.
3. Buy only when the stock price hit the support level. Never buy at the high. Do not ever FOMO.
4. Buy in stages. You can split the purchase in 2 to 3 stages. Don't go all-in for one purchase.

You need to set a buying rule or buying plan before you execute anything.

Some of the questions that you need to ask before you buy the stock:

1. Have you analyze the business of the respective stock?
2. Is the fundamental of the business is strong?
3. Does the company will be able to sustain the dividend distribution?
4. Does the business be able to overcome the current Covid-19 pandemic?
5. What is the growth potential of the company?