Dividend Stocks in KLSE: Best Malaysian Companies to Look For!

Which are a few extremely profitable KLSE dividend stocks to invest in? What’s the scope of investing in Dividend stocks in the financial market?

“Growing dividends from high-quality companies can make a significant positive impact on a portfolio.”

–Daniel Milan (Managing Partner of Cornerstone Financial Services)

The Malaysian stock market or KLSE, today has more than 900 companies listed. Would you like to explore more dividend stocks in the KLSE market? Then, follow along with us in this blog!

What are Dividend Stocks?

Dividend stocks are securities paid to the company’s shareholders in lieu of cash payments. By paying dividends on stocks, the company can sustain the cash balance with all the shareholders being paid.

Did you know?

Stock dividends are not taxable until the investor decides to sell them off! Thus, it comes with a tax advantage.

How is Stock Dividend Calculated?

The stock dividend has a general formula:

Example: (RM 1 / RM 20) * 100% = 5% div return

What Is A Good Yield In Dividend Stocks?

The answer to this question is variable. It is very much dependent on the Fixed Deposit rate.

For instance, if the FD rate is 7%, the dividend rate of nothing less than 8% can be considered decent. In the same scenario, if the FD rate is as little as 2.5%, then a dividend rate of 3% is also good enough!

3 Malaysian Dividend Stocks To Invest In

Now, let us look at five Malaysian Stocks(dividend) that a young investor should consider:

1.     Malakoff Corp Bhd

2.     Astro Malaysia Holdings Bhd

3.     Sentral REIT (Forward dividend yield: 8.75 percent)

This is a brief insight into dividend stocks, with names of a few companies that investors can look out for. However, if you are considering investing in dividend stocks, we suggest you understand every bit of it carefully and research extensively on the various companies.

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