The dividend is one of the key factors investors consider while making an investment decision as they are an important factor which shows the companies health and its value. On the other hand dividend also enables an invest to make capital gains as it plays an important role in setting off the cost price of an investment made on a stock sometimes it is observed that only with dividend component the investor will get their money in few years which they have invested in a particular stock is the dividend payout is good and companies fundamentals are strong.
By keeping in mind the growth in construction and technology sector with some airline and leisure companies which will be benefited with the 2017 Southeast Asian Games we had shortlisted few good companies an investor can consider to buy in order to achieve a capital appreciation goal.
The companies listed below not only have a good dividend payout record but they are also very strong fundamentally
CLASSIC Scenic Bhd
CLASSIC Scenic Bhd, is a ignored gem in Malaysian stock market with very strong financials where there is a constant increase in EPS from 2013. by looking into the financial reports we can clearly see an increasing in net income and an increase in dividend per share which is not so common. Very few companies in the construction sector are known for dividend payment CLASSIC Scenic Bhd is posting a 10% YOY growth in Dividend per share which is above the industrial average.
In the year 2017 CLASSIC Scenic Bhd, showing a dividend yield of about 7%, which is again above industrial average.
CLASSIC Scenic Bhd, which is a manufacturer of and exporter of wooden picture framework and its majority of sales comes from export to the US, were recently the US dollar is corrected considerably the performance of the company is considerably good which clearly states the strength of the company.
AirAsia one of the biggest players in Malaysian stock market in terms of market capitalization and market reach, It s also the biggest player in the airline industry. AirAsia Berhad is one of the main company which will be benefited with the 2017 Southeast Asian Games.
The company had posted a good growth in revenue and margins in the previous year 2016 and this trend is expected to continue in coming future also. The company also had posted a robust growth in dividend per share of 200% in last year which is a very impressive.
Currently, the stock of AirAsia is trading near 3.30 level and this is a very attractive price to buy the counter for a long term investment objective.
Inari Amertron Bhd
On the fundamental basis, Inari is one of the best company in Malaysian markets with a very strong and constant growth in revenue and net income from last five years. The company is posting continues profits and the EPS is also increasing at a healthy pace which makes it a must have in every investment portfolio.
Inari Amertron Bhd posted a robust growth in dividend per share with more than 100% increase which is very rare in the industry.
Inari Amertron Bhd is a leading radio frequency (RF) test house and an industry leader in RF with a strong relationship with Broadcom and Apple. Inari has a three year supply agreement with Apple until 2018 which ensures a smooth functioning of the company without any issue related to order book.
By analyzing the balance sheet of the firm we can clearly see that the company is constantly decreasing the debt part of capital and it is a good step to make the capital mix near to perfect.
Protasco Bhd is expected to be benefited with the early general election in 2017 as the increased focus of state and federal governments on road development and maintenance will result in a steady income stream for the company as the company is a well-known name in construction business focused on the road maintenance work.
Also, Protasco Bhd already has a strong order book worth about RM4.5 billion which can easily last for 10 years and that is capable of generating revenue near to RM400 million. On the other hand, the management of Protasco is targeting a replenishment of nearly RM500 million for the financial year 2017 that comprises infrastructure and government housing projects development.
On the financial end, the company showed a steady income stream, with a decent dividend yield of about 5.5% which is above to other mid cap construction players.
Uchi Technologies Bhd
Uchi Technologies Bhd is one of the top companies in terms of dividend payouts. The company has a proven track record or consistent dividend payouts supported by the constant growth in margins and positive operational cash flows. Uchi Technologies Bhd is a coffee machine maker, and exporter which.
The company has an impressive dividend payout ratio of 80.88%. And a dividend yield of 6.14%. Which is best in industry and that makes it a very interesting investment option in Industrial production space.
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