Mesiniaga-Superior Dividends?

Dividend Payor

If you look at the dividend trend of Mesiniaga, you will be persuaded to invest in this RM2.00 plus counter.

Let us look at the dividend track record of the company from 2003 to 2010.

2010: 20 sen less 25% tax (15%)
2009:19 sen less 25% tax (14.25%)
2008:19 sen less 26% tax(14.06%)
2007:19sen less 27% tax(13.87%)
2006:19sen less 28% tax(13.68%)
2005:19 sen less 28% tax(13.68%)
2004:13sen less 28% tax(9.36%) + 3 sen tax exempt > 12.36%
2003:13sen less 28% tax(9.36%) + 3 sen tax exempt > 12.36%

Thus it can be seen that the average dividend received is 12.36% to 15%. This will work out to 13.65 sen per share

Assuming that you have expended RM2.00 to buy 1000 shares of Mesiniaga in 2003, you would have received 13.65 sen of dividend per share per year.This will work out to RM135.50 per year times 6 years which should earn you a tidy sum of RM813.

Compared to a fixed deposit rate of say, 3%, you would have earned 6.83 sen per RM1 investment or an equivalent of 3.83% more for every ringgit invested.

If Mesiniaga can maintain its dividend policy and rate payout, then we can say that it is one great stock to derive returns from!