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2024 recap: Relive your key investment moments
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2024 Bursa Recap: Who Reigns Supreme as the High Dividend King?

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Moomoo News MY joined discussion · Dec 30, 2024 17:20
Amid global economic uncertainty, high dividend investment strategies have become highly coveted by investors. This strategy can bring relatively stable cash flow returns and reflects the company's concept of attaching importance to shareholders. In 2024, bank stocks and REITs are two prominent representatives of high-dividend investments, performing quite well in terms of both stock prices and dividends.
Real Estate Investment Trusts (REITs) are investment tools. They aggregate funds from multiple investors to purchase, manage, and operate income-generating real estate assets like office buildings, malls, and apartments. By doing so, they offer individuals a way to indirectly invest in real estate without the need to buy whole properties, making real estate investment more accessible.
The advantages of investing in REITs are significant. Firstly, they provide regular dividend income as required by law to distribute most taxable income. Secondly, they offer diversification, spreading risk across multiple properties and locations. However, there are drawbacks. The share price can be volatile, affected by market sentiment and interest rates. Also, management quality varies, and poor management could lead to underperformance despite the asset base.
Let's first examine the REITs with the highest dividend yield in 2024. $SENTRAL (5123.MY)$ takes the lead with an impressive dividend yield of 8.54%. It mainly holds and invests in high-quality income-generating assets for commercial use (including retail and/or office) in Malaysia. Notably, its price has remained relatively stable, increasing by only 5% in 2024, while its dividend payouts have been consistently highly attractive.
Similarly, $YTLREIT (5109.MY)$ has also shone brightly. In 2024, its price surged by 22.7%, and it maintained a healthy dividend yield of 7.03%. YTL Hospitality REIT specializes in furnishing stable cash distributions to shareholders by leveraging real - estate assets with growth potential. In the fiscal year of 2024, its earnings per share hit RM0.1044, and the dividend per share was RM0.0856 , channeling most of its profits back to investors.
2024 Bursa Recap: Who Reigns Supreme as the High Dividend King?
Turning our attention to bank stocks. As one of the best-performing assets in the market, bank stocks have attracted a lot of investors' attention due to the steady rise in their share prices in 2024.   $MAYBANK (1155.MY)$ hit a historical high of 10.82 Malaysian ringgit during intraday trading on September 11. It recorded a 20.7% increase throughout 2024 and boasted a dividend yield of 5.95%. According to the third quarter financial report, its revenue amounted to 16.69 billion Malaysian ringgit, a 4.2% uptick, and its profit reached 2.54 billion Malaysian ringgit, a 7.6% growth.
The performance of $CIMB (1023.MY)$ is even more staggering. Its share price skyrocketed by as much as 46.45% within the year, and remarkably, it still managed to uphold a dividend yield of 4.83%, combining the perks of both dividend income and share price appreciation.
From the perspective of dividend stability, REITs show strong stability as their income mainly comes from real estate rents. With high occupancy rates, dividends are steady. Bank stocks also offer relatively stable dividends. Their earnings rely on interest spreads and fees. However, bank dividends can be affected by macroeconomics, monetary policies and regulations.
Overall, in terms of dividend yield, REITs have a slight edge. However, when it comes to share price appreciation, bank stocks clearly take the lead. Looking ahead to 2025, considering the varying performances of these two sectors in 2024, it is of utmost importance to assess the future prospects of high dividend sectors. So, what's your perspective on the high dividend sectors in 2025?
Wealth Builder, Income Provider: Click to Unlock Passive Earnings with High-Dividend Stocks:
2024 Bursa Recap: Who Reigns Supreme as the High Dividend King?
Disclaimer: Moomoo Technologies Inc. is providing this content for information and educational use only. Read more
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