Malaysia's richest tycoons and the billions in dividends they earned in the final quarter of 2020

 Bees for the honey

Cows for the milk

And, stocks for the dividends!

KUALA LUMPUR (March 18): Eight of Malaysia's top 10 richest tycoons — based on Forbes' 2020 billionaires list — earned a whopping RM1.99 billion worth of dividends from the recently announced financial results for the quarter ended Dec 31, 2020, based on their known shareholdings in Bursa Malaysia-listed firms.

Among them, Public Bank Bhd founder Tan Sri Dr Teh Hong Piow is expected to receive the biggest dividend payout totalling RM668.18 million from his shareholdings in the bank and insurer LPI Capital Bhd.

Public Bank, the third largest banking group in the country by asset size, declared an interim dividend of 13 sen (payable on March 22) for its fourth quarter of financial year 2020 (4QFY20) ended Dec 31, 2020. Public Bank also undertook a four-for-one bonus share issue to reward shareholders last year, which enlarged the number of Public Bank's outstanding shares to 4.2 billion.

Teh holds a 22.78% stake in Public Bank through his private investment vehicle — Consolidated Teh Holdings Sdn Bhd. He has another direct stake of 0.64%.

LPI Capital, meanwhile, announced a second interim dividend of 44 sen per share for its 4QFY20, which amounted to a payout of RM175.3 million. Based on Teh's 44.15% stake in the company, his share of the dividend payout will be about RM77.39 million.

After Teh is Hong Leong Group's Tan Sri Quek Leng Chan, who is estimated to get RM296.05 million worth of dividends through his holdings in Hong Leong Financial Group Bhd (HLFG) and Hong Leong Bank Bhd (HLB).

HLFG declared an interim dividend of 10.8 sen per share while HLB announced an interim single-tier dividend of 14.78 sen per share. Quek holds a direct interest of 0.47% and an indirect interest of 77.88% in HLFG, while he controls an indirect interest of 64.51% in HLB.

Next is telecommunications tycoon T Ananda Krishnan, who will receive RM276.04 million from his stake in Maxis Bhd and Astro Malaysia Holdings Bhd. Ananda is the largest shareholder in Maxis with an indirectly held 62.34% stake. In Astro, he holds an indirect stake of 41.29%.

Maxis declared a fourth interim dividend of five sen per share in its 4QFY20 ended Dec 31, 2020, while Astro announced a payout of 1.5 sen per share in its 3QFY20 ended Oct 31, 2020.

Ananda also holds a 34.86% stake in Bumi Armada Bhd, Asia's biggest offshore supporting vessel operator. The company, however, did not declare any dividends in 2020.

Robert Kuok's dividend cheque from PPB Group Bhd for the final quarter of last year is estimated to be RM274.65 million — the fourth highest sum among the ultra-rich.

PPB Group announced a dividend of 38 sen, comprising a final dividend of 22 sen and a special payout of 16 sen, in its 4QFY20 ended Dec 31, 2020. Kuok holds a 50.81% stake in the diversified conglomerate through his private investment vehicle, Kuok Brothers Sdn Bhd. He also holds a stake in Shangri-La Hotels (Malaysia) Bhd, though the latter did not declare any dividends for its FY20.

The fifth largest dividend gainer among the top 10 Malaysian billionaires is the founder and chairman of Hartalega Holdings Bhd, Kuan Kam Hon, who received RM162.47 million from the rubber glove maker, which recently announced a record high net profit of RM1 billion, and a second interim dividend of 9.65 sen for its 3QFY21 ended Dec 31, 2020, which was paid in February.

Based on the latest bourse filings, Kuan holds a direct interest of 0.795% in the group and a 48.32% indirect interest via Hartalega Industries Sdn Bhd. The glove manufacturer recently announced a record high net profit of RM1 billion for its 3QFY21 ended Dec 31, 2020 and declared a second interim dividend of 9.65 sen.

Next comes gaming tycoon Tan Sri Lim Kok Thay, who likely earned RM148.73 million in dividends from his shareholdings in the Genting group of companies listed on Bursa, despite the group facing challenges in operating its casino and resorts amid the pandemic.

This is based on the RM146.54 million Genting Bhd paid to Kok Thay's private investment company, Kien Huat Realty Sdn Bhd, and the dividends declared by Genting Plantations Bhd and Genting Malaysia Bhd.

Genting Malaysia declared a dividend payout of 8.5 sen per share for its 4QFY20 ended Dec 31, 2020, while Genting Plantations announced a 15 sen dividend — comprising a final dividend of four sen per share and a special dividend of 11 sen per share.

Kok Thay holds a direct interest of 0.44% in Genting Malaysia and a direct interest of 0.05% in Genting Plantations.

After Kok Thay is Datuk Lee Yeow Chor, who earned RM141.28 million in dividends from his holding in IOI Corp Bhd. Lee holds a direct interest of 0.16% and an indirect interest of 49.94% in the group.

Meanwhile, Press Metal Aluminium Holdings Bhd's Tan Sri Koon Poh Keong garnered RM20.22 million through his holdings in Press Metal and PMB Technology Bhd. Press Metal declared a fourth interim single-tier dividend of 1.25 sen per share in its 4QFY20 ended Dec 31, 2020 while PMB Technology declared a one sen dividend to its shareholders.

Two of the top 10 tycoons, however, did not appear to have gained any dividend payments from their shareholdings in Bursa-listed companies. They are gaming tycoon Tan Sri Chen Lip Keong and Tan Sri Lau Cho Kun, the largest shareholder in Hap Seng Consolidated Bhd.

What the glove maker billionaires take home

Though not on the list of Malaysia's top 10 richest tycoons based on Forbes 2020 list — which was published in March 2020 — Top Glove Corp Bhd's founder and executive chairman Tan Sri Dr Lim Wee Chai earned about RM460.45 million in dividend in end-2020, thanks to the interim dividend of 16.5 sen that the world's largest rubber glove maker declared in its 1QFY21 ended Nov 30, 2020.

The group also announced an interim dividend payment of 25.2 sen per share for its 2QFY21 ended Feb 28, 2021, payable on April 6 this year. Based on the announcement, Wee Chai stands to gain another dividend payout of RM710.12 million before mid-2021.

That means just for the first two quarters of Top Glove's FY21, Wee Chai has accumulated a total of RM1.17 billion in dividends, based on his total shareholdings of 35.22% in Top Glove, comprising a direct stake of 26.56% and an indirectly held stake of 8.65%.

Datuk Seri Stanley Thai of Supermax Corp Bhd, on the other hand, accumulated dividends of RM38.17 million, while Tan Sri Lim Kuang Sia of Kossan Rubber Industries Bhd earned RM132.99 million.

Including Kwan, the billionaires from the big four glove makers on Bursa earned RM794.07 million worth of dividends in end-2020, as their companies' earnings continued to scale new highs following the surge in glove demand amid the Covid-19 outbreak.

 

https://www.theedgemarkets.com/article/malaysias-richest-tycoons-and-billions-dividends-they-earned-final-quarter-2020

The 8 Rules I Use to Earn $124.29 in Dividends Per Day

By Paul Tracy This easy list of rules has helped grow my daily income from almost nothing to more than $100 per day. The 8 Rules I Use to Earn $124.29 in Dividends Per Day

I counted twice, just to be sure...  $41,513.18. That's the amount in "daily paychecks" -- more commonly known as dividends -- I've received from my investment portfolio in 2011. That total comes to $124.29 for each day of the year. Cash. Why am I telling you this? It's not to brag. I was born and raised in Wisconsin. The typical Midwestern mentality is so ingrained in me, I veryrarely talk about money. And I'm not one to show off, either. I drive a Nissan I bought six years ago. I get my hair cut at Supercuts. No, I'm telling you this because I honestly think what I've discovered is the single best way to invest, hands down. I'm talking, of course, about the "Daily Paycheck" strategy. If you've read Dividend Opportunities for even a couple of weeks, you're likely familiar with Amy Calistri and this strategy. Amy is the Chief Strategist behind our premium Daily Paycheck newsletter. Her goal is to build a portfolio that pays at least one dividend every day of the year. The idea for her advisory came from my personal "Daily Paycheck" experiment.  I've been following the strategy personally for a few years now. In that time, I've not only been able to build an investment portfolio that pays me more than 30 times a month, but the checks are getting bigger and bigger as time passes. What I like best is that it's the easiest way to invest you can imagine. Once you get started, it runs on autopilot. Of course, you'll make a few portfolio adjustments now and then, but you won't have to anxiously watch your holdings every day.  Now it's time to come clean. If you start this strategy tomorrow, it's unlikely you'll be earning $124 a day by the weekend. I've been fortunate to start with a healthy-sized portfolio. And as I said, I've enjoyed the benefits of implementing the "Daily Paycheck" strategy for a few years now, so my payments have grown much larger than when I started. But here's the good news... it doesn't matter. Whether you have $20,000 or $2 million, you can start your own "Daily Paycheck" portfolio today. The results are fully scaleable, and anyone can have success, as long as you follow eight simple rules Amy and I created to not only build our portfolios, but also manage risks... 1. Dividend payers beat non-dividend payers. According to Ned Davis Research, firms in the S&P 500 that raised dividends gained an average of 8.8% per year between 1972 and 2008. Those that cut dividends or never paid them produced zero return over this entire time span. 2. Higher yields beat lower yields. This is such a "no-brainer" that it doesn't require explanation. Clearly, a bigger dividend puts more cash in your pocket.  3. Reinvesting your checks beats cashing them. Reinvesting buys you more shares, which leads to larger dividend checks, which buy you even more shares, and so on (this is how my dividend checks have grown). 4. Small caps beat large caps. A 70-year study of different equity classes showed that $1,000 invested in small-cap stocks grew to $3,425,250. In large-cap stocks it grew to only $973,850.  5. International beats domestic. The average U.S. stock pays just 2.1%. That's peanuts compared to yields overseas. Stocks in New Zealand yield 4.9%... stocks in France yield 4.7%... in Germany 4.0%... and in the U.K. 3.9%. 6. Emerging markets beat developed. It's much easier for a small economy to post fast growth than a large one. And investors who know this benefit. Over the past 10 years, Vanguard's MSCI Emerging Markets ETF (NYSE: VWO) has gained an average of 10.7% per year. Stocks throughout the developed world, as measured by the MSCI EAFE Index, have been up an average of just 4.8% per year. 7. Tax-free beats taxable. Tax-free securities often put more cash in your pocket at the end of the day -- especially if you're in a high tax bracket. A muni fund yielding 6.0% pays you a tax-equivalent yield of 9.2% if you're in the 35% tax bracket.  8. Monthly payouts beat annual payout.  Getting paid monthly is not only more convenient -- you actually earn more. Thanks to compounding, a stock paying out 1% monthly yields far more than 12% -- it can actually pay you 12.68% if you reinvest. It's these eight rules I've followed to build a portfolio that has not only paid me $124 a day in 2011, but that is also seeing rising payments. In November, I earned 37 checks, at an average daily amount of $160.30.  I've been investing for the better part of two decades. During that time, I've tried just about every strategy and style you can imagine. And don't get me wrong -- you can make money any number of ways in the market.  But earning thousands of dollars each month consistently? I never experienced that until I implemented the "Daily Paycheck" strategy. Good Investing! Paul Tracy Co-Founder -- StreetAuthority, Dividend Opportunities P.S. -- My ultimate goal is to build a portfolio that pays me $10,000 a month. In November I pocketed $4,808.87, so I'm well on my way. To learn how easy it is to set up your own "Daily Paycheck" portfolio, be sure to read this memo. It has all the details on how to get started yourself. http://globaldividends.com/newsletter.asp?d=5715&utm_source=outbrain&utm_medium=referral&utm_campaign=do-ob-1011

Low dividend payout by AirAsia if any

Tuesday August 24, 2010

Low dividend payout by AirAsia if any
By LEONG HUNG YEE
hungyee@thestar.com.my


PETALING JAYA: While analysts approve of AirAsia Bhd’s move to pay dividends, they expect the dividend payout will not be significant yet.

The budget carrier, which has been listed since 2004, do not have a dividend policy. However, the group is now considering to pay dividend to its shareholders.

HwangDBS Vickers Research said that although the dividend payment was positive for AirAsia’s shareholders, it did not expect yield to be attractive, considering AirAsia’s huge capital commitment as it was still at its expansion phase.

A local analyst said although AirAsia could afford to start paying dividend, it need not do so as no one expected the airline to pay dividend.

“Its cashflows are okay but the questions is not about the decision to pay, but by what quantum. It (quantum) makes a difference, for example paying one sen – which still constitutes a dividend although it’s not material – and a payout which gives a decent yield such as 10 sen,” he added.

A bank-backed analyst concurred that AirAsia could afford to pay dividend based on its current cashflow but it would not be as significant yet. He added that investors could invest in dividend stocks such as British American Tobacco if dividend was what they were after.

“AirAsia is a growing company. Investors invest in AirAsia for its growth story. They could pay half a sen to one sen in dividend and it may be more symbolic in the next three years,” he added.

The analyst also said AirAsia needed to restructure its Thai and Indonesian units as both were currently leveraging on its balance sheet.

Another analyst said AirAsia was currently on an expansion phase and would required large capital commitment. Hence, its dividend yield would not be as attractive.

“I don’t think it will be that much. In terms of yield, it may not be that attractive,” she said.

Yesterday, a local daily reported group CEO Datuk Seri Tony Fernandes as saying the group was planning to propose a dividend policy by the third quarter of this year.

AirAsia has been mulling over a dividend for some time. In June, Fernandes said AirAsia was in a much better position to consider paying dividends to its shareholders after solving some issues within the group.

Although it has announced its intention to pay its maiden dividend, the carrier has not given any indication on when the first payout will be.

As at June 30, AirAsia has a short and long-term borrowing of RM7.58bil and a deposit, bank and cash balances of RM858.1mil.

“The borrowings are mainly in the form of term loans which are for the purchase of new Airbus A320-200 aircraft,” it said in notes accompanying its latest quarterly results.

For the quarter ended June 30, AirAsia posted a net profit of RM198.9mil for the three months to June 30, a 43% jumped from RM139.2mil in the previous corresponding period, on a turnover of RM940.6mil.

http://biz.thestar.com.my/news/story.asp?file=/2010/8/24/business/6906547&sec=business

Recession or not McDonald's increases dividend for the 32nd year

Updated: Friday September 25, 2009 MYT 7:55:44 AM
Recession or not McDonald's increases dividend for the 32nd year


OAK BROOK, Illinois: McDonald's Corp. said Thursday that its board has raised its quarterly dividend 10 percent to 55 cents. It will be paid on Dec. 15 to shareholders of record as of Dec. 1. The increase brings its yearly dividend to $2.20 and its total quarterly dividend payout to about $600 million.

The previous quarterly dividend was 50 cents.

The company said it has raised its dividend every year since paying its first dividend in 1976.

The most recent increase puts the company at the high end of its goal to return between $15 billion to $17 billion in cash to shareholders over a three year period that started at the beginning of 2007, the company said.

McDonald's also said it would delist its stock from the Chicago Stock Exchange, where it had its secondary listing.

It decided to leave the Chicago exchange because of low trading volume there.

After Oct. 30, it will be listed only on the New York Stock Exchange.

McDonald's shares rose 58 cents to close Thursday at $56.12.

The stock added another 3 cents after hours following the dividend increase. - AP

http://biz.thestar.com.my/news/story.asp?file=/2009/9/25/business/20090925075349&sec=business


Comment:  

At the price per share of $56.12, the yearly dividend of $2.20 translates into a DY of 3.9%.  This is equivalent to a dividend multiple of 25.5x.

A company giving increasing dividends year on year will see its share price trending upwards in unison.

Given the low interest rates for fixed deposits and low treasury yield, investing into this stock provides a better return comparatively.  Those with a long term investing horizon need not worry about the price volatility of the share.  The long term gains from dividends and capital gains seem safe and predictable as long as the company continues to perform as it did in the past.

Dividend Growth: the Hidden Fundamental

Dividend Growth: the Hidden Fundamental

Yield Tells Only Part of the Story

by Michael C. Thomsett

Many investors, even the most conservative ones devoted to fundamentals, tend to overlook or ignore dividend yield as a primary indicator. One reason is that current yield — dividend per share divided by the stock’s price — is somewhat misleading.

Dividend yield is an oddity because the yield increases as the stock price falls. So you could be getting an ever-growing percentage of an ever-shrinking pot. Think back to 2008, for example. When prices of many stocks declined broadly, what happened to a stock falling by $5 a month and paying an annual dividend of $1 per share? As the price fell, the yield rose (see table, below).

In this case, the dividend yield doubled over six months. Good news by itself, but over the same period you lost half your value per share in the stock. This is one of the many reasons investors discount dividend yield as an indicator; it doesn’t reflect the relationship between fundamental value and current price. Whenever the market’s technical side is down — from late 2008 through early 2009, for example — yield is going to be misleading. If a company’s stock price has fallen because of inherent weakness of the company, its sector or the larger economy, the yield isn’t as sound a fundamental indicator as other tried-and-true metrics, such as revenue and earnings trends and the current, debt and price-earnings ratios.

Making Dividends a Reliable Indicator

But there’s another way to analyze dividends to identify exceptional opportunities, even in depressed markets. This requires analyzing dividends as part of a long-term trend and in conjunction with other key indicators. This not only improves the accuracy of the review but also helps narrow the list of viable investment candidates.

As of late April 2009, for example, it was quite difficult to select high-quality stocks based on the traditional analysis of revenue and earnings. So many companies — more than usual by most standards — were available at bargain prices, but were all of these exceptional long-term, buy-and-hold investments? A study of revenues and net earnings doesn’t reveal the distinctions between two types of companies: those most likely to bounce back once the recession ends and those suffering long-term degeneration in value.

Unfortunately, many firms honored in the past as safe and sound blue chips haven’t always endured. For example, General Motors and Eastman Kodak, two of the shining stars of the 20th century, have today become low-value, high-risk has-been investments.

They’re hardly alone. A few years ago, the financial sector was considered among the safest and most promising of long-term investment sectors. Companies such as Washington Mutual, Citigroup and Bank of America were held in high esteem. Today, however, the financial sector is in very poor shape and many companies — including Citigroup — will probably never recover fully.

We need to carefully quantify the popular belief that after prices fall, smart investors should gobble up bargain-priced companies. Investors look for companies that combine demonstrated long-term growth and prospects for stock price appreciation. But revenues and net earnings don’t tell the whole story after a down year. For example, consider these three well-known companies: Johnson & Johnson (ticker: JNJ), Coca-Cola (KO) and General Electric (GE). Which of these hold promise for growth in coming months, and which aren’t as likely to recover? (Companies are mentioned in this article for educational purposes only. No investment recommendation is intended.)



Click image to enlarge

Let’s begin by comparing 10 years of results for three popular indicators: revenues, net income and dividends per share (see tables, above). A glance at only the revenues and net income seems to place all three companies on the same footing. All have shown a decade of growth, the only major slip being GE’s net income decline in 2008. But the differences are more significant when you compare dividend history. Over the past decade, both Johnson & Johnson and Coca-Cola increased their dividend every year without fail. GE reduced its 2008 dividend for the first time in 10 years.

By itself, the dividend history doesn’t condemn GE. But when viewed with other important indicators, an investor likely will conclude that GE is the least promising of these three companies. For example, the price range for General Electric in 2008 was from $38 down to $12 per share, a drop of 68 percent. (In comparison, Johnson & Johnson ranged between $72 and $52, a 28 percent difference, and Coca-Cola ranged from $65 down to $40, a change of 38 percent.)

Another important difference is found in the debt ratio, the portion of total capitalization represented by long-term debt. Although Johnson & Johnson (15.6 percent) and Coca-Cola (11.5 percent) have kept long-term debt at the same level for the decade, GE’s has increased to 74 percent (not unusual for a company with a financial services arm) from 55 percent 10 years ago.


Click image to enlarge

Dividend Achiever Status as a Primary Test

Dividend yield is virtually useless as a trend indicator, especially compared with the more meaningful revenue, net profit and debt ratio changes over time. But companies that have increased their dividend every year for at least 10 years — the so-called dividend achievers — tend to be better-managed companies with lower-than-average price volatility, little or no core earnings adjustments and more capability to weather recessionary times. By definition, a company able to increase its dividends has to be in control of its cash flow.

Mergent Corporation follows dividend achievers and has created an index of companies meeting this criterion. In its most recent report, fewer than 300 companies met this important test. (Standard & Poor’s compiles a separate index called the Dividend Aristocrats.)

Increasing dividends every year without fail is a good test of working capital and quality of management. The dollar value of dividends is relatively small. Johnson & Johnson’s dividend of $180 annually for 100 shares is peanuts. But as a symptom of quality, the dividend achiever company is exceptional.

Growth in dividends also is important if you reinvest your dividends automatically through a dividend reinvestment plan, or DRIP. When Johnson & Johnson credits your account with dividends, you can let the cash ride or earn about 1 percent in your brokerage cash account, or you can reinvest it in more shares of Johnson & Johnson and get 3.6 percent on the growing share total. Dividend reinvestment is a smart idea, and with dividend achievers, the compound yield goes up every year.

Dividends by themselves are a small piece of the bigger puzzle. But limiting your search to the very small group of companies that have grown their dividends every year helps cut down the list of potential investments. Combined with analysis of revenue, net income, P/E, debt ratio and other key fundamental tests, dividend trends help you decide whether depressed-price companies are never going to come back — or are the most promising candidates for a strong rebound.


Michael C. Thomsett of Nashville, Tenn., is author of over 70 books. His latest is Winning With Stocks (Amacom Books), which includes practical suggestions for picking stocks based on fundamental analysis. Thomsett is also author of Annual Reports 101 (Amacom Books), Getting Started in Fundamental Analysis (Wiley) and Investment and Securities Dictionary (McFarland).

http://www.betterinvesting.org/Public/StartLearning/BI+Mag/Articles+Archives/0909linespublic.htm