Dividend Income — How It Works🏢 CompanyEarns profitDeclares dividende.g. RM0.10/sharepays👤 InvestorReceives cashdividend payoutinto brokerage accchooses💸 Spend / WithdrawPassive income lifestyle🔄 DRIP — ReinvestBuy more shares → compoundingCompoundingloop 🔁📅 Key Dividend DatesDeclarationDateBoard announcesEx-DividendDateMust own BEFORERecordDateShareholder listPaymentDateCash in account!Dividend Yield FormulaYield = (Annual Div / Price) × 100e.g. RM0.40 / RM4.00 = 10% yield 🎯Target Yield RangeMY: 4–8% · US: 2–5% (aristocrats)High yield warning: check payout ratio!

🔄 DRIP — Dividend Reinvestment Plan

Year 1100 sharesRM400/yrreinvest all divsYear 3116 sharesRM464/yrreinvest all divsYear 5134 sharesRM536/yrreinvest all divsYear 10179 sharesRM716/yrreinvest all divsAssuming 4% yield · DRIP each year · Same stock price (conservative)

🌟 Top Dividend Stocks to Watch

🇲🇾 Malaysia — Bursa

Public Bank (1295)
Banking · Consistent payer 30+ yrs
5.2%
Petronas Gas (6033)
Energy · Govt-backed, stable
4.8%
Tenaga Nasional (5347)
Utilities · Monopoly, regulated
4.3%
IGB REIT (5227)
REIT · Mid Valley, The Gardens
5.5%
Axiata (6888)
Telco · Regional telecom giant
4.1%

* Indicative yield. Check latest figures before investing.

🇺🇸 USA — NYSE/NASDAQ

Realty Income (O)
REIT · Monthly dividends!
5.8%
Coca-Cola (KO)
Consumer · Div Aristocrat 60+ yrs
3.1%
Johnson & Johnson (JNJ)
Healthcare · Div King 60+ yrs
3.0%
Procter & Gamble (PG)
Consumer · Div Aristocrat 67 yrs
2.5%
AT&T (T)
Telco · High yield, post-cut
6.5%

* 30% US withholding tax applies to Malaysian investors on US dividends.

🔍 Dividend Safety Checklist

Metric✅ Safe Signal⚠ Warning Signal
📊Payout Ratio< 70% — sustainable> 90% — at risk of a cut
💵Free Cash FlowFCF fully covers the dividendDividend funded by debt ⚠
📈Dividend History5+ years of consecutive growthRecent cuts or freezes ❌
🏢Business MoatDurable competitive advantageCyclical or easily disrupted
📋Debt LevelD/E < 1× (manageable)D/E > 3× — financial stress
⚠ Educational purposes only. Yields fluctuate. Always verify before investing. DYOR.
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