Road To Financial Freedom - Malaysia Stock

I started my Investment journey in 2005 almost 20 years back.

Throughout this journey i experienced gain and loss / sleepless night etc before I practising long term value investing method.

Our thinking and mindset determine our success in investing.

If you invest like a business owner you will end up owning a business but if you invest like a punter you will quit this game and end up with huge losses.

My rule is take the lowest risk possible to obtain good return or in other words margin of safety.

The keyword is take low risk compare to others. 

But how ?

1. Buy during stock market crash

Example during 2008 sub-prime crisis / Covid 2019 etc

In short we must have patient to wait and take charge when opportunities come.

2. Buy companies with deep discount which have stable business but selling at deep discount.

Malaysia Portfolio

Maybank 

Average buying price at RM 7.00 

Quantity : 151,800 shares

Market Value : RM 10.54 x 151,800

RM 1.6 Million 

Capital Gain : 50%

Dividend Yield : 8.5%

Yearly Dividend amount RM 91,080

* I have been subscribing to every dividend reinvestment plan to lower down my cost of investment

Rhb Bank

Average Buying Price at RM 5.40

Quantity : 119,000 Shares

Market Value : RM 6.45 x 119,000

RM 767,550

Capital Gain : +19%

Dividend Yield : 7.4%

Yearly Dividend amount = RM 47,600

HL Industries

Average Buying Price at RM 8.90

Quantity : 22,000 Shares

Market Value : RM 13.46 x 22,000

RM 296,120

Capital Gain : +51.20%

Dividend Yield : 12%

Yearly Dividend Amount : RM 23,540

Total Malaysia Market Value : RM 2.66 Million 

Total Malaysia Capital : RM 1.9 Million 

Capital Gain : 40%

Total Annual Dividend : RM 162,220

Average Monthly Income : RM 13,518

Dividend Yield : 8.5%

In conclusion, the key success in dividend investment in Malaysia as below : 

1. This exclude some of the capital gain of the shares I disposed 

E.g YTL POWER / ALLIANZ / UNITED PLANTATION / 

MBMR / PUBLIC BANK / HLFG / TAKAFUL 

2. Cost of investment and time are the key criteria’s in dividend investment for us to obtain a much higher dividend yield compare to other investments.

3. Another advantage of investing in dividend investment is we can wait for share price appreciation and we can enjoy high dividend at the same time compare to stocks that does not give you any dividends or dividend lower than FD.