Keep INVESTING Simple and Safe (KISS)
****Investment Philosophy, Strategy and various Valuation Methods****
The same forces that bring risk into investing in the stock market also make possible the large gains many investors enjoy. It’s true that the fluctuations in the market make for losses as well as gains but if you have a proven strategy and stick with it over the long term you will be a winner!****Warren Buffett: Rule No. 1 - Never lose money. Rule No. 2 - Never forget Rule No. 1.
Its revenues and PBT grew about 2% per year over this period.
Its average PBT margins was 22.5%.
Its average ROE was 10.7% and showing a downward trend. Its ROE in 2022 was 9.6%.
Its DPO was 80.5%. Thus, it retained only about 20% of its earnings.
Its DY in 2022 was 6.63%.
Over this period, it retained a total of RM 1.18 of its earnings and its share price rose RM 1.79 for the same period. Thus, $1 of retained earning is reflected fully in the rise of its share price.
During the 10 Yr, its BV per share grew from RM 1.721 to RM 7.127, as the company allowed its shareholders to increase their equity through DRIP (Dividend Reinvestment Program). Its NOSH grew from 8,645 million in 2013 to 12,054 in 2022.
Its P/B or P/NAPS fell from 1.9 in 2013 to 1.2 in 2022.
From 2013 to 2022, its capital appreciation in share price was RM 1.79 and it distributed RM 4.907 in dividends, increasing the value of the initial investment by RM 6.70. Given its initial price was RM 6.96 per share, this translated into a simple total gain of 96.3% for the period.
A total gain of 96.3% over a 10 year period translates into a CAGR of around 7%.
Should you take the dividends or reinvest your dividends through the DRIP scheme?
I opine the better option is to reinvest your dividends through DRIP as Maybank's ROE was 9.6%, which is more than 2x that of the risk free interest rate.
2 comments:
10 Year from 2013 to 2022
Its revenues and PBT grew about 2% per year over this period.
Its average PBT margins was 22.5%.
Its average ROE was 10.7% and showing a downward trend. Its ROE in 2022 was 9.6%.
Its DPO was 80.5%. Thus, it retained only about 20% of its earnings.
Its DY in 2022 was 6.63%.
Over this period, it retained a total of RM 1.18 of its earnings and its share price rose RM 1.79 for the same period. Thus, $1 of retained earning is reflected fully in the rise of its share price.
During the 10 Yr, its BV per share grew from RM 1.721 to RM 7.127, as the company allowed its shareholders to increase their equity through DRIP (Dividend Reinvestment Program). Its NOSH grew from 8,645 million in 2013 to 12,054 in 2022.
Its P/B or P/NAPS fell from 1.9 in 2013 to 1.2 in 2022.
From 2013 to 2022, its capital appreciation in share price was RM 1.79 and it distributed RM 4.907 in dividends, increasing the value of the initial investment by RM 6.70. Given its initial price was RM 6.96 per share, this translated into a simple total gain of 96.3% for the period.
A total gain of 96.3% over a 10 year period translates into a CAGR of around 7%.
Should you take the dividends or reinvest your dividends through the DRIP scheme?
I opine the better option is to reinvest your dividends through DRIP as Maybank's ROE was 9.6%, which is more than 2x that of the risk free interest rate.
Investing should be simple but not simpler. :-)
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