How do you get dividends from stocks in Malaysia?
How Do I Collect My Dividend Income? Collecting dividends from stocks you own in Malaysia easy. As long as you hold the share before it's ex- date (short for ex-dividend date), you as a shareholder will be entitled to collect dividends. ”If that's the case, I'll just buy the stock one day before the ex-date.
In order to collect dividends on a stock, you simply need to own shares in the company through a brokerage account or a retirement plan such as an IRA. When the dividends are paid, the cash will automatically be deposited into your account.
Briefly, in order to be eligible for payment of stock dividends, you must buy the stock (or already own it) at least two days before the date of record and still own the shares at the close of trading one business day before the ex-date.
Malaysia is under the single-tier tax system. Dividends are exempt in the hands of shareholders. Companies are not required to deduct tax from dividends paid to shareholders, and no tax credits will be available for offset against the recipient's tax liability.
Bank Name | Dividend Yield |
---|---|
Bank of America (NYSE:BAC) | 2.2% |
Bank of N.T. Butterfield & Son (NYSE:NTB) | 5.4% |
JPMorgan Chase (NYSE:JPM) | 2.6% |
People's United Financial (NASDAQ:PBCT) | 4.8% |
To generate $1,000 per month in dividends, you'll need to build a portfolio of stocks that will produce at least $12,000 in dividends on an annual basis. Using an average dividend yield of 3% per year, you'll need a portfolio of $400,000 to generate that net income ($400,000 X 3% = $12,000).
- Pembina Pipeline Corp. (PBA)
- AGNC Investment Corp. (AGNC)
- Prospect Capital Corp. (PSEC)
- Main Street Capital Corp. (MAIN)
- LTC Properties Inc. (LTC)
- Broadmark Realty Capital Inc. (BRMK)
- Ellington Financial Inc. (EFC)
- EPR Properties (EPR)
Most dividend stocks pay out four times per year, or quarterly. To build a monthly dividend portfolio, you'll need to buy at least 3 different stocks so each month is covered.
- Genting Malaysia Berhad (GENM 4715)
- IGB Real Estate Investment Trust (IGBREIT 5227)
- Malayan Banking Berhad (MAYBANK 1155)
- Nestle Malaysia Berhad (NESTLE 4707)
- Scientex Berhad (SCIENTX 4731)
- Tenaga Nasional Berhad (TENAGA 5347)
- Tune Protect Group Berhad (TUNEPRO 5230)
- Amanah Saham Bumiputera (ASB)
- Blue chip stocks.
- Cryptocurrency.
- Employees Provident Fund (EPF)
- Equity crowdfunding.
- Exchange traded funds (ETFs)
- P2P lending (or debt-based crowdfunding)
- Private Retirement Schemes (PRS)
How can I invest in Malaysia stock?
- Choose an online stock broker.
- Sign up for a CDS and a trading account.
- Choose the stocks you want to buy.
- Place your order.
- Pay for the transaction.
- Monitor the performance of your stocks.
- Sell your stocks (if you want to)
To be eligible for dividends, you need to be holding the stock in your demat account on the record date of the dividend issue. You should have bought the stock at least one day before the ex-date so that the stocks are delivered in your demat account by the record date.
If shares are sold on or after the ex-dividend date, they will still receive the dividend. When you purchase shares, your name does not automatically get added to the record book—this takes about three days from the transaction date.
Many stock brokerages offer their customers screening tools that help them find information on dividend-paying stocks. Investors can also find dividend information on the Security and Exchange Commission's website, through specialty providers, and through the stock exchanges themselves.
As long as you hold the shares past the Ex-dividend date, you will be entitled to receive dividends. Even if you sell them after the ex-date.
If you purchase a stock on its ex-dividend date or after, you will not receive the next dividend payment. Instead, the seller gets the dividend. If you purchase before the ex-dividend date, you get the dividend.
- Genting Malaysia Berhad (GENM 4715)
- IGB Real Estate Investment Trust (IGBREIT 5227)
- Malayan Banking Berhad (MAYBANK 1155)
- Nestle Malaysia Berhad (NESTLE 4707)
- Scientex Berhad (SCIENTX 4731)
- Tenaga Nasional Berhad (TENAGA 5347)
- Tune Protect Group Berhad (TUNEPRO 5230)
What Is Selling Shares Before the Ex-Dividend Date? For owners of a stock, if you sell before the ex-dividend date, also known as the ex-date, you will not receive a dividend from the company.