These stable dividend stocks are currently giving 5.5% or above just for dividend returns. High Dividend Shares update via email: https://howtofinancemoney.com/hdl ===== Get access to secret insider videos: https://youtube.com/playlist?list=PLQ7ZQik2O1aICJYZM7otRb1ARibrW2QHJ Need 1on1 advice? Start here: https://howtofinancemoney.com/contact-details?el=ytvideo ===== Kicking things off – we have Power Root – At the current price, Dividend yield for the past 12 months at a respectable 5.5% Power Root, the maker of everyone's favorite herbal remedies, no matter what ails you! Power Root doesn't just make drinks; they crafts liquid motivation. If tiredness is a villain, these guys are the superheroes armed with cans of energy blasts. For the past 1 years, its stocks price is stable at around 2-ish ringgit range except for recent dip Now, how likely, is this dividend payout can be sustained or even higher going forward? For that, we look at % Net Profit Margin by dividing Net Profit with Revenue – in this case – 59.4/455.7 mil = 13%, good profit margin ! Also, we want to analyze Net Profit Growth. Looks like it has grown 125%, 26.3 mil to 59.4 mil woohoo, talk about can't stop, won't stop! Then next, we want to look at this stocks dividend risks to you if any Whether it has too much debt that can make it vulnerable to sudden negative changes in business and economic conditions For this, we look at Net Debt = Borrowings – (Fixed Deposits + Cash Balances), Ideally, ZERO or Negative. for Power Root, it has short term borrowings of 170 mil against cash & bank balances of 52 mil gearing = (total debt - cash) divided by shareholders funds For Power Root, its gearing hovers around 10%, nothing to worry about RCE Capital – At the current price, Dividend yield for the past 12 months stands tall at 13%! + % Disregarding special dividend, its dividend yield is still at a mouth-watering 6.8% RCE Capital sounds about as exciting as watching grass grow or paint dry. Consumer lending? Payroll collection? Commercial financing? Sounds drier than month-old toast, doesn't it? But somehow, these master money lenders have the magic touch for making profits materialize even more often than the free appetizers their hungry shareholders love. Their secret sauce? A pinch of consumer financing here, a dash of commercial lending there, and voila—their bland biz pot is transformed into a dividend cash cow! For the past 1 years, its stocks price has went up 50% from RM 1.60 to close to RM 3 So, how likely, is this high dividend payout can be sustained or even higher going forward? For that, we look at % Net Margin Past 4 Quarters by dividing 2023 Net Profit with Revenue – in this case – 138 / 323 mil = 43% - outstanding! Next, we want to look at its Net Profit Growth. Looks like it has grown 4 % compared to the year before, 133 mil to 138mil, its y-o-y net profit growth for the past 5 years has been in the 7 to 15 % range and in fact, far exceeded its Net Profit 32-ish mil, before the pandemic As usual, we look at a company's leverage and shows the extent to which operations are funded by lenders versus shareholders. Financial term for this is Gearing Ratio – high gearing generally implies a company may be vulnerable to sudden negative changes in business and economic conditions. The gearing ratio measures a company's debt burden. When a company takes on loans to buy more assets that generate juicy returns, that can ramp up profits fast & furious during good times, tends to crash hardest though when the economy hits a pothole. gearing = (total debt - cash) divided by shareholders funds For RCE Capital its gearing has always been sky-high at 100 to 200%. It says the practice of keeping minimal cash & bank balance has always been intentional in its nature of business, so if you are a shareholder, you have to live with it ========== CF Lieu is one of the most trusted & respected independent consultant in the financial advisory space in Malaysia. CF Lieu is also one of the rare financial planners aka financial advisers who is actually engaged by banks and financial institutions to conduct investment seminars & workshops - like Maybank, RHB, PNB (Permodalan Nasional Bhd), FPAM (Financial Planning Association of Malaysia)...where his audience include CEOs, CFOs, accountants, investment analysts, private bankers, relationship managers etc Many of his clients are seeing a positive return on CF Lieu’s advice in days, not months. See CF’s clients’ testimonials here - https://howtofinancemoney.com/testimonials3?el=ytvideo If you think you might benefit from one-on-one interaction with CF, visit https://cflieu.com ---------- Disclaimer – This is not investment advice & does not constitute a recommendation to buy the dividend stocks covered as I don’t know your financial needs, circumstances, risk appetite or investment objectives. #highdividendstocks #dividendstocks #bursamalaysia #dividendinvesting

• published: 13 Jan 2024
• views: 5773