RCE's Better Dividend Fiscal 2009

Yes, after an initial payment of RM10.00 dividend per 1000 shares last year, RCE Bhd has rewarded minority shareholders with a more than 100% increase in its dividend. The dividends to be paid are 9% tax deductible at 25% and an additional  single-tier tax exempt 8.5%.  This works out to RM15.25. The quantum will have to be approved at the AGM on 8 September 2010.

Right now there is bullish buying as some fund managers have suggested that its next target price should be beyond RM1.00. That is some way to go and so do not expect a straight as an arrow movement of RCE's price.

RCE has always been a defensive stock because its main credit business is underpinned by consumer credit to civil servants. Deduction is made at source and so default is not an issue.

RCE also buys doubtful debts from commercial banks and have a good performance in its recovery.

This is a penny stock counter to watch.