I cannot help but smile when Zana messaged me that she had just received her dividend payments for TM (9.8 sen per unit) and PChem (8 sen per unit ).
The total amount is sufficient to settle her monthly car loan payment for a few months. There is a big
at the end of her message. I responded by saying that was how it should be, making her money work for her while she is asleep so to speak. She was able to make the initial investments from the salary she earned and saved while studying and later working in London for five years.
I can feel her joy as she has just been working for three years and is already saving up whatever she can for her future needs, already planning for her retirement in more than 30 years time! She has also set up a portfolio for her investing activities. Mostly consisting of dividend-paying equities, PNB unit trusts, mutual funds and a hedge fund, courtesy of her Dad. For her age, the portfolio should be more adventurous to capitalise on opportunity and growth stocks. She can afford to venture on this route since she has a steady monthly income and working in a great organisation.
This is the way to go for young people, planning financially at the beginning of their career. I also advise her to read a lot on investing, the market conditions/factors affecting them, the world economy and commodities prices to understand market volatility and to act accordingly.
For example, she may have to sell off her PetChem shares soon as the company is involved in a cyclical business where work and profit will be affected and the share price will also decline on the cycle's trough and she needs to short her position well before that and repurchase them on the next cycle.
And now that TM's share price has tumbled due to in part by Fitch Rating downgrade announced on 25 September 2013, this is the time to buy the shares as TM despite the outlook being negative currently will not be greatly impacted as it has solid business fundamentals and that its expanded broadband service will be able to maintain its strong position among the telcos.
I for one will continue to support TM and ride with its fortune. It is an excellent defensive stock which prides itself with giant anchor shareholders such as PNB and EPF. I plan on buying more TM shares at this present beaten down price using my dividend proceeds from AS1M paid out on this coming October 1 2013.
I had some PetChem shares acquired through its IPO and had cleared them all after 18 months on price upside but Zana has been keeping them for dividend purposes.
Many top dividend paying stocks like Dutch Lady,Nestle and of course BAT are expensive and not worth buying due to the low yield on your investment. A wise choice of dividend stocks will make your money grow over time.
The total amount is sufficient to settle her monthly car loan payment for a few months. There is a big
at the end of her message. I responded by saying that was how it should be, making her money work for her while she is asleep so to speak. She was able to make the initial investments from the salary she earned and saved while studying and later working in London for five years.I can feel her joy as she has just been working for three years and is already saving up whatever she can for her future needs, already planning for her retirement in more than 30 years time! She has also set up a portfolio for her investing activities. Mostly consisting of dividend-paying equities, PNB unit trusts, mutual funds and a hedge fund, courtesy of her Dad. For her age, the portfolio should be more adventurous to capitalise on opportunity and growth stocks. She can afford to venture on this route since she has a steady monthly income and working in a great organisation.
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| BAT - British American Tobacco is a top dividend-paying stock but its price at RM65 per unit is prohibitive for most retail investors! |
This is the way to go for young people, planning financially at the beginning of their career. I also advise her to read a lot on investing, the market conditions/factors affecting them, the world economy and commodities prices to understand market volatility and to act accordingly.
For example, she may have to sell off her PetChem shares soon as the company is involved in a cyclical business where work and profit will be affected and the share price will also decline on the cycle's trough and she needs to short her position well before that and repurchase them on the next cycle.
And now that TM's share price has tumbled due to in part by Fitch Rating downgrade announced on 25 September 2013, this is the time to buy the shares as TM despite the outlook being negative currently will not be greatly impacted as it has solid business fundamentals and that its expanded broadband service will be able to maintain its strong position among the telcos.
I for one will continue to support TM and ride with its fortune. It is an excellent defensive stock which prides itself with giant anchor shareholders such as PNB and EPF. I plan on buying more TM shares at this present beaten down price using my dividend proceeds from AS1M paid out on this coming October 1 2013.
I had some PetChem shares acquired through its IPO and had cleared them all after 18 months on price upside but Zana has been keeping them for dividend purposes.
Many top dividend paying stocks like Dutch Lady,Nestle and of course BAT are expensive and not worth buying due to the low yield on your investment. A wise choice of dividend stocks will make your money grow over time.
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