Sunday, February 19, 2017

EPF Dividend 2016 at 5.7%

The Employees Provident Fund (EPF), with the approval of the Minister of Finance, today declared a dividend rate of 5.70 per cent for 2016, with a total payout amounting to RM37.08 billion.

The EPF recorded RM46.56 billion in gross investment income in 2016, an increase of 5.25 per cent compared with the RM44.23 billion recorded in 2015. This is the highest gross investment income ever recorded since the establishment of the EPF in 1951 and the amount has been growing annually at 11.1 per cent since 2001.

This is a commendable achievement in view of the much tougher market environment. For 2016, the rolling three-year real dividend was 3.83 per cent, 183 basis points above the target.

During the year under review, Equities continued to be the main contributor of income with 57.68 per cent amounting to RM26.85 billion, up 3.23 per cent compared with RM26.01 billion in 2015.

The EPF’s investments in fixed income instruments comprising Malaysian Government Securities & Equivalent and Loans & Bonds in total contributed 34.87 per cent, or RM16.23 billion, of the RM46.56 billion investment income for the year.

Real Estate & Infrastructure asset class contributed RM2.49 billion in investment income in 2016 with annual growth of 46.04 per cent compared with 2015, while Money Market Instruments contributed RM982.28 million of income during the year.

Saturday, February 18, 2017

Don't check your stocks every hour every day cause I want to make you Rich maa!

Don’t be a moron. If you check your stocks every day and worry about the daily changes in the stock prices and the variations in your net worth, you’re being dumb.

Most successful investors don’t need to check on their investments every day. The daily changes in stocks are almost always noise, plain and simple, and few 200% returns were determined by the news of one day.

What you should be doing?

I for one always advocate in this blog that investing should always be for the long term and getting rich slowly and steady.

Another thing I frequently will say is to treat investing like a business (again which means for the long term)

Of course you need to occasionally monitor your investments to see how they’re doing. And you may want to set up automatic news alerts through a stock app/Google news to keep you informed on major news in the company. How often should you manually check on things? Probably every few months like during quarterly earnings report with a major review every year. But not every day.

Relax. Once you get set up right, investing is easier than you think. Last year, I trade less and reduced the time looking after my stock investments. And I managed to INCREASE my total income compared to the previous year.

Sunday, February 12, 2017

8 Ideas to earn US$

The US$ is at RM 4.44 as of today.

Imagine if you could generate some income in US$ now.

I have come out with some ideas on how to get some US$.

The ideas below are what I think an individual could do. They are all medium to low risks ideas. If some of these ideas aren’t for you, just skip ahead to the next ideas.

Your situation is 100% unique and the only way you are going to make US$ is to ignore the ideas that aren’t right for you. Even if 80% of the ideas in this article are completely useless for you, that still leaves 1-2 ideas for you to consider for making US$ !

1. Invest/trade in US stocks for capital gains

2. Invest in US stocks for their dividends/bonus/splits

3. Invest in a stock options strategy called covered call.

4. Invest in a US property for value appreciation and collect rentals.

5. Open a Foreign Currency account in US$ and earn interest on the balance and future appreciation of US$.

6. Create a blogger site like Ongmali Blogspot, apply for Google Adsense advertisement and earn revenue in US$.

7. Register for EBay etc that allow you to sell something to other people and sell your goods online.

8. Create a website and sell 3rd party goods online.

Saturday, February 11, 2017

Analyzing My 2016 Investing

I spent some time during the Chinese New Year holidays to analyse and look at all my 2016 investing.

I think this action makes me a better investor and also make me aware of my strengths and weakness.

I do it on a yearly basis but I know some people who do it weekly and/or monthly. I think monthly is best as you can see your mistakes much earlier. Oh well, I am a bit lazy ....

I have 3 columns ... 1) Stock trading and investments 1) Dividends and 3) Other Income

Overall I did better than 2015 ..

I managed to reduce the number of trades, yet INCREASE my income on stock trading and investments and dividends.

I also made some "Other income" from Google Adsense compared to zero in 2015.

I also started putting money into my KWSP (EPF) account .(more about this in an article later)

I made some terrible mistakes too ...on two stocks which I suffered huge losses. These are speculative stocks and I did NOT cut loss quickly. I must learn from this and remember the lessons in my head.

All the best and good trading everyone in 2017!

Monday, December 26, 2016

How to pick the best dividend-paying stocks

While the days of buying a stock and never worrying about it again are over, retirees looking for immediate income will likely have long-term relationships with a few dividend-paying stocks.

With that in mind, here are few tips on how to sort through the options.

1. Look for a company with a long dividend history. Many pride themselves on having continuously paid dividends for many decades.

2. The company's payout ratio should be no more than 80% of its earnings per share. If a company earns $0.50/share and is paying a dividend of $0.75/share, it could be in trouble. It's important to compare the earnings per share and the dividends per share of any investment candidate.

What if you discover that a company is paying out more than it's earning? Maybe it sold off some assets — a one-time event — and it's paying out part of the proceeds in dividends. That's not a problem. However, if the company is recklessly borrowing money to pay the dividends, that's a huge red flag.

3. Choose companies with a worldwide market presence, as they provide somewhat of a hedge against inflation.

4. Pick companies with a stable product line. Whether it's beer, food, oil, or computer chips, the company you're investing in should have a core business with a worldwide need for its product.

5. A dividend-paying company should have lots of cash. Check a company's current ratio, which measures its ability to meet short-term obligations. The "current ratio" is the ratio of current assets to current liabilities. If a company's current ratio is greater than 1, it's in good shape.

6. Pick a company that sticks to its core business. During the Internet boom, many companies were swapping stock and buying up businesses all over the place.

It's one thing when a pharmaceutical giant acquires a smaller drug company. That makes good business sense. It's quite another story when a company like General Electric decides to buy NBC because it wants to be in the media business. Every company needs to keep its competitive edge, but there's a benefit to knowing what you're good at and sticking with it.

7. Stock-price stability is also important. We need to continually remind ourselves that no matter how big or stable a company, its stock price can still fall. The stock prices of many huge, dividend-paying companies tumbled in the 2008 crash. However, they experienced less damage than the total market, and they recovered more quickly.

8. Some of the better yields are in sectors that experience more volatility. A prudent investor will diversify his dividend-paying stocks among different sectors to reduce the overall impact of market swings.

9. Look for a company with a history of buying back its stock. It's a big plus if the company has enough earnings to pay good dividends and buy back stock at the same time. Having stock appreciation in addition to generous dividends is the overall goal.

10. A company with a history of increasing its dividend is ideal, so check to see if the company has a pattern. Many old-line moneymakers have done very well for their shareholders by increasing their dividends every year.

11. Check the current dividend yield percentage. There are many good dividend-paying stocks out there, but you should factor in the price of any company you're considering. Look for companies paying at least 3%.

12. Set a trailing stop loss. You don't want to ride a stock down just to see your dividend income eaten up by loss of principal. A stop loss helps to keep that from happening.A traditional stop loss uses a fixed price. If you buy a stock for $100 and put in a 20% stop loss on it, you have an immediate sell order if the stock drops to $80.

A trailing stop loss is a little more sophisticated; it adjusts the start point every time the stock hits a new high. This gives investors the potential to lock in profits and still protect themselves.

Source : Marketwatch