The performance of the dividends and returns of the top 30 quality dividend stocks in the Malaysian market
Investing in dividend stocks emphasizes the three words "slow, steady, and patient." These three words may seem simple but few people can actually achieve them because compared to the excitement of making quick profits, this investment approach is really too boring.
Reviewing the performance of dividend stocks at the end of 2022 (article dated 3 Jan 2023), the average return of the top 30 dividend stocks was 7.19%, with a ratio of 20:10 for increases versus decreases. In the same year, the USA's S&P500 dropped by 19.44%, and Malaysia's FBMSCAP dropped by 5.30%. Many readers commented that it was simply luck as the dividend stocks happened to be bouyed up at the end of the year.
Looking at the performance of dividend stocks at the end of 2023 (article dated 31 Dec 2023), the average return of the top 30 dividend stocks was 13.82%, with a ratio of 23:7 for increases versus decreases. In the same year, the USA's S&P500 rose by 24.23%, and Malaysia's FBMSCAP rose by 9.57%. Still, many readers felt that it was simply luck.
As of October 13, 2024, the average return of the top 30 dividend stocks from the beginning of the year until now is 24.20%, with a ratio of 28:2 for increases versus decreases. Among these:
18 of them have increased by 20% or more
The increase in the six companies reached 10% or more.
Only 2 companies experienced a decrease of 5% or more.
In 2024, the performance of dividend-paying stocks can only be said to be unexpectedly good, mainly because these dividends are generous, and companies with a solid foundation have become a safe haven for funds in the market downturn.
The market downturn in the second half of 2024 mainly occurred in small-cap stocks with smaller market capitalization, while these 30 dividend-paying stocks include as many as 24 companies in the top 200 market cap companies in Malaysia. This also explains why this year's performance is so outstanding.
I think this performance really explains why I always say "slow and steady wins the race". There isn't really that much luck in this world, it's all about perseverance and belief, repeatedly doing something well.
Compared to making abrupt moves in the stock market, I would rather pursue the investment goal of "continuous and steady growth".
In addition to looking at the dividend yield, investing in dividend-paying stocks also involves assessing whether the company can continue to maintain dividends and sustain its growth momentum in the future, to avoid falling into the dividend trap where you earn dividends but lose on stock price.
For example, the current dividend yield of FPI is as high as 7.99%, but it has been replaced by Allianz in this round of dividend-paying stocks update. This is mainly because FPI pays dividends only once a year and is in a labor-intensive industry, where labor costs and forex fluctuations will impact profit performance and affect dividend payments.
If you feel that there are other companies worth including, please leave a comment below.
买入标的：
*This time, 30 dividend stocks updates have removed FPI and added Allianz.
*The dividend yield of industrial REITs has been adjusted to exclude 10% Tax.
Some dividend stocks' dividend yield does not include one-time special dividends.
The performance from the beginning of the year has already included dividends.
-----------------------------------------------
#The criteria for selecting dividend stocks are based on the following points:
1. The stock price is relatively stable and not easily speculated on, focusing on stability.
2. Having a stable dividend distribution policy, it is best to distribute dividends more than twice.
3. Dividends must be created from business operations, not from eating into reserves / fundraising / borrowing.
4. Must have a relatively healthy balance sheet and cash flow statement to ensure the ability to sustain dividend payments.
5. Even if the future performance does not grow, it is important to maintain the current situation as much as possible.
"Slow is fast". The dividend investment strategy emphasizes patience, stability, and perseverance, aiming for a continuous stream of cash flow and generous stable dividend payments from companies. Of course, any capital appreciation would be an additional bonus.
$TIMECOM (5031.MY)$ $MAYBANK (1155.MY)$ $CIMB (1023.MY)$ $MISC (3816.MY)$ $RHBBANK (1066.MY)$ $WPRTS (5246.MY)$ $UTDPLT (2089.MY)$ $IGBREIT (5227.MY)$ $BURSA (1818.MY)$ $PAVREIT (5212.MY)$ $CLMT (5180.MY)$ $SUNREIT (5176.MY)$ $ABMB (2488.MY)$ $LPI (8621.MY)$ $GASMSIA (5209.MY)$ $HLIND (3301.MY)$ $ALLIANZ (1163.MY)$ $AEONCR (5139.MY)$ $MATRIX (5236.MY)$ $MAGNI (7087.MY)$ $MASTER (7029.MY)$ $DANCO (5276.MY)$ $KMLOONG (5027.MY)$ $MBMR (5983.MY)$ $RCECAP (9296.MY)$ $UCHITEC (7100.MY)$ $WELLCAL (7231.MY)$ $INNO (6262.MY)$ $KIPREIT (5280.MY)$ $BPPLAS (5100.MY)$
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
Read more
Comment
Sign in to post a comment
FB: 理财嘛嘛档
Blog: https://financialmamak.blogspot.com/?m=1
27Followers
5Following
17Visitors
Follow