2018 Dividends Round Up

I designed my portfolio to consist both growth- and dividend-paying stocks. I want to have both capital appreciation and cash flow at the same time.

We have only 1 trading day left in 2018 (December 31st), and I'm not expecting any dividend that day.

Here's how the stocks in my portfolio contributed to the total dividend payout in 2018:

Air Asia
First off, the beloved yet cyclical low-cost carrier counter.
It does feel like getting a paycheck, when you receive such a fat RM0.40 dividend at once, for a yield at (RM0.40 / RM3.067 * 100) = 13.1%.
As of now, the price has bounced back rapidly to RM2.97 (after huge correction on the ex-dividend date). I acquired the counter at RM3.067, so capital-wise, my holding has declined -2.9%.

I'm holding on this counter for now.

Mi Equipment
The company has paid out dividends twice since its IPO, at 3 and 2 sen each. Coupled to the nice capital appreciation to-date, current price at RM2.16 vs IPO price at RM1.42, this stock is an outperformer in my portfolio. Total yield from Mi Equipment is at ( RM2.16 - RM1.42 + RM0.03 + RM0.02 ) / RM1.42 = 55.6%.

I expect this counter to be a fast grower in several years – I will hold, and even might add my holdings on this counter sometime later.

Sime Darby
A big conglomerate that has been split up by Perbadanan Nasional Berhad late last year, Sime Darby seemed to be hovering below RM3.0 earlier this year, slowly slipping and even dipped to an extreme RM2.10 once. Now it has recovered and is hovering between RM2.30 to RM2.40 due to the increased December volatility.

I'm not planning to trade in and out, so I don't care about volatility. Sime Darby pays nice dividends and it's a solid company, though seems that it has very little room to grow.

I will review my holding in Sime Darby some time this year. For now I will hold.

Matrix Concepts
This is one of the counters which I bought due to wrong premise: just to get dividends! This was one of my earliest stock trade, hence the naïveté. I ended up exiting the counter at a -2.5% loss, despite the 3.25 sen dividend.
Having said that, Matrix Concepts is a regular dividend payer, and one of the few property companies that are concentrated on affordable housing market which is doing much better than other property segments.
However, my portfolio is currently is already extremely heavy on construction + property counters. I will only watch from a far.

Paramount
Just like Matrix Concepts, I also bought this counter just to get dividends. However, I was extremely lucky. Not long after my acquisition at RM1.89 the counter posted a nice financial results, investors were happy, and the stock went up like crazy. I exited at RM2.11, and along with 8 sen dividend, I profit 12% from this counter.

One of best trade that I've entered and exited so far, though I credit this to luck – I didn't know half of what I was doing at that time. I do not advocate this impulsive trading to anyone. Do you due diligence before putting any money in the market.

Just like Matrix Concepts, Paramount is also a generous dividend payer. Again, I'm already heavy on counstruction + property sectors and won't consider Paramount, at least not in the near future.


IJM
At only 2 sen, I won't mind at all since the company is busy with its order book reported to be full for at least 2 to 3 years. Also, the stock has been battered since May 9, despite IJM not having any major projects canceled by the new government. Hence my acquiring the stock.

In their annual report, the management has frankly alluded that the business will be challenging for the time being. Yet I believe IJM is a strong player in their fields. I expect the value will start to emerge in next year, maybe even next next, when IJM get paid from their projects and post their earnings. Hopefully the dividend payments will also increase.

I will hold for now.


Summary
In short, my portfolio has produced 2.66% dividend yield from my total investments.


Other companies
Next year, I'm expecting to receive dividends from Inari Amertron at 1.6 sen to start the year.
Mah Sing and Favco have been historically paying dividends in September, both at about 5%.


Next year's plan
I plan to add these counters, a mixture of growth and dividend:

• Bursa Malaysia
• Fraser & Neave
• Scientex
• Hartalega

I will comment on these companies in another post.

I'm also waiting for the results of my shares application for QSR Brands IPO from the Ministry of Trade and International Industry.

Till then, we're left with just 1 trading day left for 2018! I will take a break and not do anything on my holdings. And I'll stay away from financial porn.

I wish everyone an awesome 2019!